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Local Economy

Last updated: Friday, October 20, 2017

 

Bright Investment Attraction Landscape

Posted: Wednesday, May 24, 2017


In recent years, despite facing enormous difficulties and challenges, Lam Dong province has still managed to attract a lot of investors from all economic sectors, thus contributing significantly to local socio-economic development.

Economic leverage
As of April 30, 2017, Lam Dong province had 821 domestic investment projects with the total registered capital of VND112,492 billion, of which 213 projects are finishing investment procedures, 324 are under construction and 285 are operational. Investors disbursed VND36,160 billion.

Besides, the province had 104 effective foreign direct investment (FDI) projects with a combined registered capital of US$518.3 million. The majority of FDI projects in Lam Dong are small, mainly invested in agricultural production with preliminary processing with 60 projects, accounting for 58.25 per cent of projects. On average, a project has US$4.98 million of investment capital. Up to now, 86 FDI projects are operational. Foreign investors spent US$312.3 million on their projects, equivalent to 60.25 per cent of registered capital.

FDI capital has played an important role in shaping the hi-tech agricultural production model. Agricultural production and processing projects have helped raise agricultural product values, including fruit and vegetable, flowers and Oolong tea, and made them popular brands in the domestic and foreign markets. Especially, the hi-tech agricultural production model has affected people in project areas. At present, this pre-eminent model is being applied by many companies and farmers in the province and helping increase the value of agricultural products and agricultural processing industries, raise land-use value, and actively contributing to local socio-economic development. In addition, FDI projects have played an important role in enhancing the sense of discipline and improving management capacity, professional skills of workers and the society as a whole.

More motivations for investment attraction
To improve investment attraction, Lam Dong province has paid much attention to administrative reform and business environment improvement. Basic administrative procedures have been completed by the province and based on central regulations to concretise actionable contents according to Decision 1130/QD-UBND dated May 31, 2016 of the Provincial People’s Committee on instructions on order, procedures and management of off-budget investment projects in Lam Dong province, and Decision 1684/QD-UBND dated August 6, 2016 on the issue and announcement of administrative procedures under the jurisdiction of the Department of Planning and Investment. Moreover, the promulgation and publication of investment administrative procedures by provincial departments and branches also helped enhance the transparency of administrative procedures and improve the investment environmental.

In 2016, the Provincial People’s Committee, provincial departments, branches and localities have provided favourable conditions to speed up project implementation. In the year, 42 projects were entirely or partially completed to put into operation. Non-state investment projects have contributed positively to accelerating the province's socio-economic development, increasing State Budget revenue, providing jobs for local people, and improving livelihoods of people in project areas.

In 2016, the Lam Dong Provincial People’s Committee in collaboration with JICA and DI Consulting Company to carry out many activities of the Agricultural Development Project towards accessing a multi-sectoral approach and improving the investment environment in the agricultural sector in the province.

The launch of the project has helped raise the perception of people and enterprises in applying post-harvest technologies as well as applying some models of hi-tech agricultural production to some agricultural products of the province. At the same time, it has also promoted the image of Lam Dong to Japanese companies and individuals. In the year, Lam Dong and Japan Desk received more than 20 Japanese investors arrived in the province to seek investment opportunities. To improve the business environment, enhance competitiveness and draw more Japanese investors, the Lam Dong Provincial People’s Committee set up Lam Dong Japan Desk.

On June 5, 2016, Lam Dong province announced the Prime Minister's Decision 1528/QD-TTg dated September 3, 2015 on a number of specific mechanisms and policies for the development of Da Lat City in conjunction with the Investment Promotion Conference in Da Lat City. At the conference, the province signed three cooperation agreements and three memoranda on cooperation. Moreover, by the end of 2016, the Lam Dong Provincial Party Committee issued three resolutions - Resolution 05-NQ/TU dated November 11, 2016 on comprehensive, sustainable and modern agricultural development in 2016-2020 period and to towards 2025, Resolution 06-NQ/TU dated November 11, 2016 on synchronous infrastructure construction in the 2016 - 2020 period and towards 2025, and Resolution 07-NQ/TU dated November 11, 2016 on high-quality tourism development in the 2016 - 2020 period and towards 2025 in Lam Dong province. The enforcement of these three resolutions will add wings to the development of locally strong fields in the coming time.

Prospect of a year of breakthroughs
According to the Lam Dong Department of Planning and Investment, the carrying out of many programmes and plans to improve the investment environment, enhance openness and transparency of investment attraction has helped to draw more investment capital in 2017. In the first three months of the year, the province lured three FDI projects into the garment and wine production sectors with a combined registered capital of US$41.1 million. Besides, three big investors are establishing investment projects.

In 2017, the province will concentrate on further improving the business investment environment, especially bettering behaviours of the government machinery and reforming administrative procedures to shorten the service time to build up the trust of investors and businesses. With its efforts, the province expects to draw more investors into local industrial zones. In the latest development, the Provincial People’s Committee issued an official document urging the reduction of business registration time to only two days. In the coming time, the Department of Planning and Investment will study and propose the Provincial People's Committee to reduce the time for settlement of some procedures relating to investment registration certification, mobilise people and enterprises to carry out administrative procedures concerning investment and business to shorten the travelling time, visits and expenses for enterprises.

It is obvious that, by carrying out administrative reform policies, administrative procedures are made public and transparent. The time needed for processing procedures is shortened. Civil servants are more professional. These pluses are expected to exert a strong pull on investors and enterprises in 2017, a year with strong hope for a record investment value.

Hoang Lam








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