Lam Dong Province Creates Favourable Investment Environment

11:23:20 AM | 26/6/2006

Vietnam Business Forum interviewed Phan Van Dung, deputy director of the Lam Dong Department of Planning and Investment, about the province’s investment attraction in the past years and orientations in the coming years.
Can you give us some highlights of Lam Dong province’s investment attraction over the past few years?
In order to attract investment capital, Lam Dong province has provided priorities for Vietnamese and foreign investors. As a result, many enterprises of various economic sectors have invested in Lam Dong province. The highest wave of investment has been seen since 2003. Total social investment capital over the past five years has reached VND 9,250 billion, equal to 106.3 per cent against the plan. Of the figure, 46.7 per cent came from enterprises and people while, 10.4 per cent, from foreign investors.
Specifically, between January 2003 and late May, 2006, Lam Dong province agreed 267 projects with a total registered capital of VND 12,541 billion. Of the figure, 156 projects have been licensed, equal to 50.94 per cent. Eighty three projects are under construction while 48 projects have been put into operation.
Despite having potential in tourism development and processing industry with abundant farm-produce as materials, Lam Dong’s investment attraction has been slow over the past years. What are the main reasons for this?
Despite having gained some significant achievements, the number of projects registered in Lam Dong province remains modest to the province’s potential. Most projects have small scale with simple technology. They do not use many workers. They mainly concentrate in urban areas and places with developed infrastructure facilities. Few projects have been developed in remote areas. Their implementation remains slow.
So far, among 267 agreed projects, only 48 projects have become operational. There are objective reasons, including constraints in the quality of human resources, technology, infrastructure and financial conditions. However, it results from subjective reasons.
Promotion activities have not been organised regularly or in enough depth They are still monotonous. Some agencies and localities have not provided enough attention to investment promotion and support for investors. Accordingly, some localities and agencies have not helped investors find and explore places for their projects. Also, they have not provided good consultancy and assistance to investors, helping them overcome difficulties. Furthermore, the administrative reform remains slow and asynchronous.
What has Lam Dong province done to overcome these difficulties?
In the 2006–2010 period, Lam Dong province will continue to mobilise resources for development, striving to gain around VND 23,000 billion, an increase of 2.5 folds against the 2001–2005 period. To achieve the target, local authorities and agencies should overcome the constraints to investment attraction that have hindered them in the past.
Accordingly, Lam Dong province will review and add priority policies for investors in accordance with its conditions and the State’s regulations, clarifying priorities for each concrete field, programme and project. The province will continue to boost and renew it tourism, trade and investment promotion activities. The province will adjust and supplement a list of projects calling for investment capital in accordance with the province’s conditions, prioritising the attraction of investment for developing driving sectors and tapping its comparative advantages, as well as attracting investors with financial and technological strength.
In addition, Lam Dong province has developed a comprehensive strategy for the international economic integration process in combination with the province’s strategy throughout 2010 and the vision to 2020. Accordingly, the province gives a special focus on developing trademarks for its tourist, vegetables, flowers and tea products.
What are the main industries calling for investment inLam Dong province in the coming time?
In order to create a premise for the local economy to accelerate, Lam Dong province will continue to implement main programmes and works, mobilising capital from local and foreign sources for developing spearhead sectors, calling for ODA capital for building infrastructure facilities and FDI capital for the industries of high comparative advantages. In the coming time, Lam Dong province will focus on attracting investment capital to tourism, agriculture, industry and construction, and education and training.
Reported by Hoa Binh