Local Economy

Last updated: Wednesday, May 15, 2019


Mobilising All Resources for Rapid, Sustainable Socio-economic Development

Posted: Monday, November 12, 2018

On September 3, 2015, the Prime Minister issued Decision 1528/QD-TTg on specific mechanisms and policies for development of Da Lat and its vicinity and Lam Dong province made a public announcement this issue on June 2016. From this launching pad, attracting investment into Da Lat City in particular and Lam Dong province has made positive changes. The investment and business environment has been increasingly improved while more businesses and investors arrive in the locality to explore business opportunities. To learn about this progress, we have an interview with Mr Dang Tri Dung, Director of the Department of Planning and Investment of Lam Dong. Hoang Lam reports.

Given many specific preferences from the Prime Minister's Decision 1528/QD-TTg, could you please tell us some remarkable results in investment attraction of Lam Dong province to date?
The business environment of Lam Dong province has improved significantly since 2016. Investors have positive views on local economic development potential and have registered to do business in the province. Specifically, the Provincial People’s Committee approved in principle 139 projects with a combined registered capital of VND9,977.3 billion (US$425 million) and a rented area of 1,495.2 ha. Among them, 10 foreign direct investment (FDI) projects registered to invest VND1,473.42 billion and hire 43.3 ha of land.

To date, Lam Dong province is home to 935 valid investment projects with the total registered fund of VND127,593.4 billion (US$5.5 billion), which leased 74,337.5 ha of land. Investors are carrying out investment procedures for 175 projects; building 311 projects; and operating 449 projects. They have disbursed estimated VND53,282.7 billion, or 42 per cent of the total registered capital. Operational projects have contributed to accelerating local socioeconomic development, increasing the local budget revenue, and increasing employment and livelihoods for local workers.

This positive result came from the firm direction of the Provincial Party Committee, the Provincial People’s Council and the Provincial People’s Committee in executing resolutions and decisions of the Provincial Party Committee and the Provincial People's Committee with a very high determination. Typically, economic restructuring coupled with changing growth pattern, increasing local competitiveness and promoting local advantages has facilitated the agricultural, tourism, hydropower and mining sectors, among others, to develop. The high-tech agriculture programme has accelerated agricultural development in productivity, income and product quality; financial, banking, telecom and transportation service sectors have been constantly expanded; cultural, health, education - training, scientific and technological have made positive progress. Particularly, the Prime Minister’s decision on specific policies and policies for development of Da Lat City along with the Provincial People’s Committee’s Decision 1130/QD-UBND dated May 31, 2016 guiding order, procedures and management of non-State funded investment projects in Lam Dong province have helped reduce start-up costs and investment procedure costs for enterprises and investors, thus attracting more investors to the province and encouraging individuals and business households to register for corporate incorporation.

What fields will the province focus on attracting investment capital in the coming time?
To effectively exploit local potential and strengths for rapid and sustainable socioeconomic development, Lam Dong province will give priority to drawing projects using modern technology to make high added value, hiring many local workers, using environment-friendly business approaches, and using energy and resource-efficient technologies. Specifically, in tourism service, the province will focus on carrying out Resolution 07-NQ/TU dated November 16, 2016 of the Lam Dong Provincial Party Committee on development of high-quality tourism and services in Lam Dong province in 2016 - 2020 and to 2025. Wherein, Lam Dong will give priority to drawing investment projects to develop luxury hotels, general amusement parks, resort complexes, large-scale tourism projects, and upmarket shopping centres. Da Lat City and some localities will be constructed to become centres of ecological tourism, regional and international conferences and meetings.

In agriculture, the province will encourage biotech, high-tech agriculture, animal husbandry, research, production, processing and preservation of high-quality agricultural and forest products. It will call for and mobilise investment resources for construction of hi-tech agricultural parks, post-harvest centres and flower trading centres.

In industry, Lam Dong province will concentrate on industrial development together with the Central Highlands and neighbouring regions; prioritise the development of intensive processing industries for tea, coffee, mulberry, vegetables and flowers; develop cottage industries together with associated service and tourism; call investors to build multi-sector scientific and technological research, education - training and technological transfer centres to make Lam Dong a high-quality human resources development centre for the Central Highlands.

To improve the investment attraction outcome, how has Lam Dong province focused on administrative reform, especially raising the Provincial Competitiveness Index (PCI)?
In 2018, under the theme of "Strong and consistent action of the political system," with the leadership and guidance of the Provincial Party Committee, the Provincial People’s Council, the Provincial People’s Committee and the Fatherland Front Committee; the efforts of all levels of government and branches; and particularly the endeavours of the business community, the province’s CPI has robustly progressed and achieved positive results. In 2017, its PCI climbed five places to the 22nd position from the 27th out of 63 provinces and cities, with its overall score rising by 4.84 points over 2016. Five component indexes picked up their values, including business support (up 19 places); labour training (16 places); access to land (11 places), market entry (4 places); and provincial leadership (2 places).

The above success came from the province's efforts to accelerate administrative reform; further review administrative procedures so as to promptly propose competent authorities to amend, supplement or abolish invalid procedures and, at the same time, reduce by 20 per cent the time of settling administrative procedures in most administrative agencies in the province. Some indicators reached and even exceeded contents stated in the commitment agreement signed between the Lam Dong Provincial People’s Committee with the Vietnam Chamber of Commerce and Industry (VCCI), including shortening the time needed to resolve administrative procedures in business registration to two working days; shortening the time of medium-voltage electricity connection to less than 33 days; raising the rate of companies filing electronic tax declarations and paying tax electronically to 99 per cent; publicising tax refund data and ensuring at least 90 per cent of tax reimbursements refunded in time; shortening the time for getting construction permits and related procedures to less than 70 days; and reducing the time to complete export procedures to less than 10 days and import formalities to less than 12 days. The province has also effectively advised legal solutions for enterprises; strengthened investment, trade and tourism promotion, connected supply and demand, and facilitated local businesses to seek partners and increase export turnover.

On business development, by June 30, 2018, the province had 7,638 enterprises with a total registered capital of VND75,815 billion (US$3.3 billion). The number of enterprises and the value of registered value rose 13.3 per cent and 14.1 per cent annually on average, respectively. The firm, consistent and effective implementation of programmes and plans aimed at improving the business and investment environment, enhancing local competitiveness and supporting business development, has produced positive impacts on people and businesses who were inspired to invest in business start-ups and expand business operations. Policies on land, finance, credit, wage and labour as well as support policies on training, information, science and technology, investment promotion are regularly updated, amended and supplemented in line with actual local situations and basically meet demands from enterprises and investors.

Particularly, innovative business start-ups have been promoted by Lam Dong province with decisions on establishment of the Start-up Support Force, the Start-up Assistance Fund and a council in charge of appraising and selecting business start-up ideas and initiatives. At the same time, the province assigned specific tasks to relevant agencies and units for better business support in the coming time.

In addition, the province has carried out many solutions to ensure the right to business, equal access to resources and business opportunities for enterprises, especially access to credit capital for business operations. It has also effectively deployed vocational training, job introduction; carried out support programmes on science and technology for enterprises; helped them apply information technology to production and business; and assisted them with international integration.

Needless to say, the investment climate, business conditions, competitiveness, business support and development in Lam Dong province have achieved encouraging results. This has inspired and stimulated people, businesses and investors to invest their money to do business in the province and significantly help local socioeconomic development.

Thank you very much!

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