Lao Cai: Growth Pole and Regional Economic Center

With expanding development space and a strategic position on the Kunming-Lao Cai-Hanoi-Hai Phong-Quang Ninh economic corridor, Lao Cai is entering a period of strong opportunity for faster growth. In an interview with our reporter, Nguyen Tuan Anh, Chairman of the Lao Cai Provincial People’s Committee, said the province is focusing on breakthroughs in infrastructure, the border-gate economy, and the investment environment, gradually strengthening its role as a regional economic connectivity hub.

With the province’s distinctive advantages in geo-economic location and expanded development space after the merger, how does Lao Cai define its vision and development goals to become a growth pole and a regional trade connectivity hub by 2030?

Lao Cai Province covers an area of 13,256.92 square kilometers and has a population of about 1.7 million from 33 ethnic groups, of which ethnic minorities account for around 57.6%. The province shares more than 182 kilometers of border with Yunnan Province (China) and lies on the Kunming-Lao Cai-Hanoi-Hai Phong-Quang Ninh economic corridor, while also connecting East and West across northern border provinces. These conditions allow Lao Cai to strengthen its role as a bridge for economic and cultural exchange, creating broad development space for the province and the region.

On that basis, the Resolution of the Lao Cai Provincial Party Congress for the 2025-2030 term sets a vision to 2030 in which Lao Cai becomes a growth pole and a trade connectivity center linking Vietnam and ASEAN countries with Southwest China, following a development orientation of “Green - Harmony - Identity - Happiness.”

By 2030, the province aims for GRDP to exceed VND240 trillion (US$9.6 billion), with average GRDP growth in the 2026-2030 period reaching 10% or more per year. The economic structure will shift toward a more modern model, with agriculture, forestry, and fisheries accounting for about 12.4%; industry and construction 43.5%; and services 37.5%. GRDP per capita is projected to reach about VND136 million (US$5,440), while average income is expected to reach VND70 million (US$2,800). Labor productivity is set to increase by more than 6.5% per year, and local budget revenue is projected to exceed VND32 trillion (US$1.28 billion). Tourism will remain an important economic sector, with a target of welcoming more than 15 million visitors and generating around VND70 trillion (US$2.8 billion) in revenue.

Deputy Prime Minister Bui Thanh Son and delegates break ground on the Lao Cai-Hanoi-Hai Phong railway, a project of major strategic importance for national development and for Lao Cai in particular, December 2025

To realize the vision and development goals to 2030, which breakthrough solution groups has Lao Cai identified?

Lao Cai has identified four breakthrough solution groups.

First, breakthroughs in strategic infrastructure. The province is focusing on developing a synchronized and modern infrastructure system to strengthen connectivity. Priority projects include expanding the Noi Bai-Lao Cai Expressway section from Yen Bai to Lao Cai to four lanes by 2026; coordinating the implementation of the Lao Cai-Hanoi-Hai Phong standard-gauge railway project, with the goal of largely completing it by 2030; accelerating investment in Sa Pa Airport; and gradually making effective use of the Red River inland waterway route, linked with inland container depot (ICD) dry ports to form a low-cost transport network.

At the same time, the province is developing digital infrastructure with the goal of building Lao Cai into a regional data center, expanding the 5G network, and advancing digital government, digital economy, and digital society. It is also building a smart border gate aimed at paperless and contactless customs clearance. In terms of energy infrastructure, the province is committed to ensuring timely land clearance and coordinating with the central government to implement power grid projects, including a 500kV transmission line to the border area.

Second, breakthroughs in mechanisms and policies at the border-gate economic zone. The province is working to leverage the advantages of the border-gate economic zone to shift from a “transport link” to a “center of the economic corridor.” The focus includes developing a pilot cross-border economic cooperation zone, moving toward a free trade area in the Kim Thanh - Ban Vuoc area; building a modern logistics system; attracting investment selectively; and advancing digitalization along the economic corridor through the development of an economic data axis serving transport, product traceability, and trade transactions.

Third, breakthroughs in high-quality service development. The province is restructuring the economy toward faster and more sustainable growth, prioritizing service sectors with high added value. Tourism is identified as an important economic sector, with the goal of welcoming more than 15 million visitors and generating around VND70 trillion (US$2.8 billion) in revenue by 2030. At the same time, Lao Cai is working to attract financial institutions and banks to expand their presence in the province, while upgrading trade activities, fairs, and business connectivity events involving enterprises from ASEAN and Southwest China.

Fourth, breakthroughs in the investment and business environment and human resource development. The province continues to accelerate administrative reform, aiming to reduce at least 30% of administrative procedures and place Lao Cai among the top 10-15 localities nationwide in administrative reform indices. At the same time, it is building a strategy to develop high-quality human resources and attract talent in logistics, international trade, finance, information technology, and foreign languages, with the goal of establishing a university in the province by 2030. The province also focuses on supporting enterprises, promoting startups and innovation, and creating conditions for businesses capable of leading value chains.

During the development process, how does Lao Cai ensure that economic growth goes hand in hand with social progress, sustainable poverty reduction, and improved quality of life for residents?

Building on its existing potential and taking advantage of new opportunities from the merger process, Lao Cai is striving to become an economic center of the Northwest region, following the development goal of “Green - Harmony - Identity - Happiness.”

In this process, the province focuses on sustainable poverty reduction policies, aiming to reduce the poverty rate by an average of 2.5-3% each year, ensuring fairness and creating conditions for all residents to access development opportunities and benefit from growth.

Lao Cai considers its people the center, the main actors, and the driving force of development. Therefore, all policies and orientations aim to improve quality of life, preserve the cultural identity of ethnic groups, and maintain harmony between economic development and social progress and equity.

Thank you very much!

Ngo Khuyen (Vietnam Business Forum)