3:30:52 PM | 1/10/2008
The north-western region requires a total investment capital of at least US$10 billion by 2010 in order to gain the target of social and economic development set by the government, local authorities said.
The region comprises Lao Cai, Yen Bai, Phu Tho, Dien Bien, Lai Chau and Ha Giang provinces aims to ensure an annual economic growth rate of 11 per cent.
Despite the advantages in land space, natural resources and hydro-electric power potential, the region has failed to lure foreign investors due to insufficient infrastructure and a shortage of skilled labor, said Lao Cai Department of Planning and Investment director Doan Van Huong.
Between 1998 and 2007, the region attracted only 92 foreign direct investment (FDI) projects worth US$675 million. In the first nine months of this year, only Lao Cai and Yen Bai pulled in FDI with four projects valued at US$73.4 million and a project of US$3.2 million respectively.
The modest FDI inflow is attributed to slow land clearance, cumbersome administrative procedures and higher investment costs than that of other locations.
Lao Cai has proved the most attractive to foreign investors in the region with 33 projects capitalized at US$318.6 million as of Sept this year. However, only US$23 million or 7.2 per cent of the sum has been disbursed.
Under a decision by the prime minister, the north-western provinces will enjoy financial support from the Government for infrastructure upgrade to encourage development and attract investment capital.
The region obtained the average annual GDP growth of 12.4 per cent last year and the figure is expected to increase by 1.5 per cent this year.
The Steering Committee for north-western region, the Ministry of Planning and Investment, and the Bank for Investment and Development jointly organized an investment promotion forum for the northwest region in Sapa town in Lao Cai province August 21, state media said.
The biggest-ever event in the region are expected to attract 500 delegates from foreign embassies, foreign and domestic companies and international aid organizations. (VNS)
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