Qualified Investors Needed

There are positive shifts in investment capital restructure, with State-funded sources falling to below 35 percent. Private and foreign capital tends to rise up. Some key projects have been completed and put into operation, including Dong Banh cement plant (phase 1), Na Duong thermal power plant (phase 1), US$51.5 million 5-star golf course, hotel and resort complex, US$100 million afforestation projects covering 100,000 hectares in most districts, and VND1,000 billion trade centre, wholesale and retailing centre projects in Lang Son City.

 

Defining that border economy is a driving force for economic restructuring, on May 20, 2009, the People’s Committee of Lang Son province coordinated with the Central Enterprise Block, the Vietnam Bank for Investment and Development (BIDV), and other organs to organise an investment promotion conference into the province. This bout, Lang Son handed over investment certificates to some large-scaled projects like a freight transhipment zone in Tam Lung, a parking lot in Huu Nghi Border Gate, a freight transhipment zone in Bao Lam. The province also signed investment agreements with some economic groups to invest in the second phase of the Na Duong thermal power plant (designed capacity of 100 MW, investment capital of over VND2,000 billion), the second production line of Dong Banh cement plant (producing 910,000 tonnes a year, costing VND1,500 billion), etc.

 

In addition, some other projects were also approved, including the VND400 billion credit contract to convert a cement blast furnace into a reverter furnace and another credit agreement worth of VND70 billion to build a commercial centre invested by Lang Son Tourism Import Export Joint Stock Company. These credits were provided by BIDV.

 

At present, the province is home to nearly 1,200 operational companies with a combined registered capital of over VND7,500 billion, including more than 30 foreign-led enterprises which invested nearly VND3,000 billion.

 

Notwithstanding initial achievements in investment attraction, Lang Son province is also facing plenty of difficulties and challenges. Investors and businesses were to a certain extent hurt by global financial crisis. A vast majority of projects in Lang Son province have to be suspended. Apart from capital difficulties, investors in Lang Son also encounter many other challenges, particularly land compensation and clearance. In general, most investors confront obstacles in site clearance after they obtain investment licences. To help investors deal with these difficulties, the provincial and local authorities streamline administrative procedures and convince local people to coordinate in site clearance. However, some underway projects have to be delayed, including the five-star golf course, hotel and resort complex, the freight cargo transhipment in Huu Nghi Border Gate, urban zones, etc.

 

Finance and capabilities of investors are major impacts on the progress of their projects. For the time being, many projects have been postponed while some others are being carried out rapidly. A typical example is the US$50 million electric car assembly project in Tan Thanh border zone in Van Lang district invested by Dragon - North Vietnam Automobile Production Joint Stock Company. This company, though obtaining investment licence only in 2010, has finished clearing 16 hectares of land and is completing infrastructure to start production. Some private-run companies are also doing business very effectively, especially in trade, export and import.