To get information on investment in Son La and economic orientation in coming years, reporter Ngo San had an interview with Mr Nguyen Ba Tuc, Head of Son La Department of Planning and Investment.
Please, tell us, the investments in Son La in recent years?
Since the implementation of the Investment Law 2006 to the end of Quarter 1, 2011, Son La has granted 161 investment certificates with registered capital of over VND26,553 billion, including small and medium sized hydro power projects with over VND17,029 billion. The implemented value of the projects amounted to over VND10,452 billion, with VND6,912 billion for hydro power projects. By the end of 2010, the province had four hydro power projects completed and started operating, increasing the total number to 14 projects under operation. In particular, Mai Son cement plant with registered investment capital of VND1,584 billion and designed capacity of 25.000 tonnes of clinker a year, has disbursed over VND1,000 billion and will be completed and put to production in Quarter 2 of 2011.
Currently, Son La has 7 FDI projects with total registered capital of US$114.5 million and implemented value of US$59 million (52 percent of registered capital). Projects already under production include tea planting and processing projects by Taiwanese and Japanese businesses, passenger transport by South Korean joint venture. The total turnover of the three projects in 2005-2010 was VND64 billion. Meanwhile, a copper-nickel project is under construction in Ban Phuc (Bac Yen district) with investment capital of US$87 million, a joint venture between Son La and investors from New Zealand and Australia.
Another important project is Son La rubber plantation with dominating share by Vietnam Rubber Group. The province is encouraging local people to join the project with land use right and buying shares. With the support of the local people, by the end of 2010, the province has planted 5,393 hectares of rubber.
Then, what are the achievements and shortfalls of the province?
In fact, Son La has recorded fine achievements in attracting investments. The province has launched repeated promotion programmes introducing the potentials and investment opportunities attracting local and foreign investors. The projects have helped reduce constraints in capital and technology, accelerating the transformation from backward agriculture to advanced production. The projects also created more jobs and services, increasing output and income and contributing to socio-economic development of the province.
In agriculture and forestry, the projects have accelerated the transformation of economic structure, introducing new technologies, increasing quality of tea, vegetables and flowers. They also helped increase output and competitiveness of products in the markets.
In industry, the projects have promoted the potentials and advantages of the province for future development of the industry.
However, there remain certain shortfalls: FDI projects are few in number, small in size and limited in consumption markets. The products and services are simple, poor quality and low competitiveness. Furthermore, with poor business management, the projects could not effectively accelerate the socio-economic development.
The root cause of the shortfalls is the slow planning delaying the implementation of the projects. Son La is a poor province with small budget while businesses rely too much on the assistance of the province and hesitate in their investments. In addition, Son La is located far from major economic centres, poor in infrastructure and services (capital, workforce, technology, investment environment). The administrative reform is less effective while the coordination between related authorities remains sluggish. Furthermore, the often changing of legal framework has slowed down the investment process.
What are the orientations of the province to attract investments in the coming years?
In agriculture-forestry, Son La will give high priority to investments in producing materials for processing industries until 2020 namely 10,000 hectares of tea, especially high quality tea by foreign investors; 5.000-5.500 hectares of Catimo coffee; 50,000 hectares of rubber; 9,000 hectares of cassava root; 3,000-4,000 hectares of sugar cane; 12,000 hectares of vegetables; and 60,000-70,000 hectares of maize.
Regarding animal husbandry, Son La will increase the number of milk cows to 30,000 by 2020 with milk output of 50,000 tonnes/year, ensure 50 percent of Singh strain in the number of meat cows; multiply buffalo strains of Sop Cop, Muong Va, Chieng Khay and Muong Gion combining household and farm raising.
In forestry, the province will call on investors to plant forests contributing to the forest networks of hydro power projects in Hoa Binh, Son La and Song Ma and others with a total area of 850,000 hectares by 2020, meanwhile encouraging investors to develop forestry, processing industry and consumption of products.
In industry, Son La will accelerate the implementation of hydro power projects (50 among 93 projects), withdrawing and changing slow projects. The province will also call on investors to develop building materials, giving high priority to Na Pat (Mai Son) cement plant with designed capacity of 25,000 tonnes of clinker a year, equivalent of 907,000 tonnes of cement a year. By 2020, investments will be attracted to the production of 54,690,000 cubic metres of stones, 3,451,000 cubic metres of sand, 292.4 million bricks. In mining industry, the province will focus on copper, nickel, limestone and clay for cement, and various kinds of coal.
To ensure land clearance for the projects, Son La call on investors develop infrastructure for industrial centres, first of all industrial centres in Muong Bu – Muong La and eMai Son. With better investment environment, we hope that more investors will come to Son La.
Vietnamese
