Dak Lak Province - The Heart of Vietnam's Central Highlands

Located in the centre of the Central Highlands, Dak Lak plays an important role in the regional strategies on economic development, especially during the international integration process. Over the past few years, the province’s economy has continued to witness a high growth rate. As a result, the local people’s material and spiritual life has significantly improved. In the 2001-2005 period, the province’s GDP growth rate reached 8.05 per cent. Its 2005 GDP is 1.47 times higher than that of 2000. Per capita GDP reached US$550.6 per year.

 

A change for the better has been seen in the province’s economic and labour structure. Accordingly, the contribution of industry and construction, and the services rose from 22.4 per cent to 35.6 per cent. The province’s agricultural and rural economy has made a significant progress. Food output, especially maize increased rapidly from 170,000 tonnes to 510,000 tonnes, the output of industrial crops has witnessed a high increase, making a contribution to a rise of the province’s export turnover, registered at US$303million. The farm business model has developed rapidly with 1,273 farms, generating huge quantity of products for the processing industry.

The number of industrial production establishments has risen fast, as the province has so far had 6,350 establishments. Some goods of high quality have found a foothold in the market. Many hydro-electric power plants, such as Buon Kuop, Buon Tua Srah, Dray Hlinh II, Krong H’nang, Serepok III and Krong Kma, are under construction. The development of industrial parks and complexes are ongoing with many projects having been attracted.

 

The services have gradually met the requirements of production and business activities and the consumption demand of the society. The sector’s value has increased by 17 per cent. Post and telecommunication facilities have been modernised with all communes, towns and wards having telephones. The transportation service has basically met the demand of socio-economic development. Banking business has been expanded, providing more services. Investment promotion and aid co-operation activities have made progress. The Vietnam-Lao-Cambodia development triangle programme has been actively carried out. So far, Dak Lak province has three projects licensed in Southern Laos with a total investment of US$32 million. As a result, Dak Lak has become the second largest province to invest in Laos.

 

All local economic sectors have seen rapid development, especially the private sector with a high increase in both scale and number of enterprises. The province now has 1,559 enterprises and around 20,000 business households, operating in various fields. Each year, the enterprises contribute between 26 and 27 per cent to the province’s budget revenues and generate jobs for over 62,000 people. Investment in the economy increases by 10.8 per cent per annum, on average, accounting for 31.4 per cent in the province’s GDP.

 

The socio-economic infrastructure has significantly improved with 100 per cent of communes and 82 per cent of local households having electricity. The province’s education and training service has seen a rapid development in both quality and quantity. The local health care network has been strengthened as the province now has 9.7 patient beds and 4.2 doctors for 10,000 people. Up to 90 per cent of households have television sets and 95 per cent of households have radio units. Over the past five years, the province has generated jobs for around 167,000 people. The number of poor households each year is reduced by 3.4 per cent per annum.

 

The Resolution N⁰ 10 by the Politburo and the Decision 168 by the Prime Minister on socio-economic development of the Central Highlands have produced a high effectiveness in the whole region and Dak Lak province. In particular, in places where ethnic minority groups live, more favourable conditions have been created for poor people to get access to social services. The province has concentrated on policies on residential and production land, housing and water supply for ethnic minority people. So far, the province has met 50 per cent of the demand for land, 33.8 per cent for housing and 32.5 per cent for safe water of the local people. These are the socio-economic achievements in the 2001-2005 period, which are also a momentum for Dak Lak province to continue to its development path in the future.

 

Dak Lak is a province with great potential and advantages in the Central Highlands. The province is rich in natural resources with an area of 13,085 square kilometres, 47 per cent of which is land for forestry production. In particular, bazan soil accounts for 25 per cent of natural area of Dak Lak province. The soil is suitable for forming production areas, specialising in industrial crops, especially coffee, with an area of 180,000 hectares.

 

As home to 44 ethnic groups with great cultural value, and many beautiful landscapes, Dak Lak province has great potential for developing ecological and cultural tourism in such places as Lak Lake, Buon Don, Krong Bong and Ea Kao. The province is giving special attention to improving the quality of its abundant labour resources. Each year, the province trains and supplies 5,000 workers to the market.

 

With these advantages and potential, Dak Lak province has called for investors to develop projects in agricultural and forestry product processing, hydroelectric power, mineral mining, construction material production and tourism. The province will offer most favourable conditions for investors.

With its advantages in the next five years, Dak Lak has selected industry as a field to make a breakthrough in its economic development, while continuing to concentrate on the development quality of other economic sectors to create an economy with a comprehensive and focused development.

 

To achieve a target of a growth rate of between 22 and 23 per cent per annum for the industrial sector, Dak Lak will concentrate on developing infrastructure facilities and promote the investment attraction to its industrial parks and complexes. In industry, Dak Lak will prioritise the development of two fields, in which the province has great potential, processing and hydroelectric power industries. Also, the province will develop other industries, such as mineral mining and construction material production to boost the development of other sectors. Alongside with its efforts to develop industry, Dak Lak province will focus on planning and developing specialised farming areas of industrial crops.

 

At the same time, the province will promote the development of infrastructure facilities in border areas, creating favourable conditions for the opening of the Dak Rue border gate. Also, co-operation with agencies and ministries will be promoted to implement the Vietnam-Laos-Cambodia development triangle programme.

 

Investment will be given to the development of infrastructure facilities of Buon Ma Thuot city and some major towns to form a regional economic centre, creating a driving force for the development of the local economic region. Dak Lak province now has five difficult districts. Therefore, in the coming time the province will prioritise its investment from State budget in the districts, thus helping them fighting poverty and hunger and narrowing the gap among regions in the province.

 

Firstly, the province will reform institutions. In the coming time, Dak Lak will concentrate on reviewing the functions and tasks of agencies in the province’s apparatus, defining tasks of agencies to avoid any overlapping of the agencies’ tasks and functions. The ISO 9001-2000 quality management system will be applied to State management agencies. In the short term, this will be applied for those agencies, in charge of investment and construction procedures.   In 2006, four departments and the People’s Committee Office are applying the system. At the same time, the province will promote the decentralisation of investment and development management, offering more autonomy for localities in attracting investment for socio-economic development.

Administrative reform is vital, in particular for investment attraction and promotion. Now, a ‘one door’ mechanism has been applied to settle procedures for individuals, organisations and enterprises. In the coming time, Dak Lak will concentrate on reviewing administrative procedures, removing unnecessary documents and regulations. At the same time, the province will promote the implementation of the ‘one door’ mechanism, in particular in investment promotion in Vietnam and foreign countries. Dak Lak province will also focus on training cadres and staff members, helping them improve their skills and knowledge.