Dak Lak: Selective Investment Attraction

11:02:11 AM | 8/1/2020

Located in the heart of the Central Highlands, a land of great potential, combined with an increasingly favorable business and investment environment, Dak Lak is becoming an increasingly attractive destination for investors. Mr. Dinh Xuan Ha, Director of the Dak Lak Department of Planning and Investment, said that Dak Lak has always focused on calling for investment in recent years.

Could you please tell us investment attraction results of Dak Lak province?

Investment attraction is a matter of special concern of Dak Lak province. With the view that the provincial government always accompanies businesses and investors, Dak Lak always provides favorable conditions for investors. The locality has attracted 294 projects with a total registered fund of about VND25,138 billion since 2014.

Investment flows have significantly helped local socioeconomic development. In 2018, the gross regional domestic product (GRDP) expanded 7.82% to reach VND51,496 billion. The GRDP rose by 7.8% a year on average from 2016 to 2018. Specifically, agriculture, forestry and fishery increased by 6.2%; industry and construction expanded by 10.1%, and service grew by 9.8%. Particularly in agricultural production, focus is placed on improving productivity, quality and performance, based on the market demand, and tapping local potential and advantages.

How do you assess the potential to attract investment of Dak Lak province in the coming time?

Currently, top interests of investors in Dak Lak province include renewable energy (wind power and solar power), urban development, ecotourism, resort and agricultural production. After obtaining investment registration certificates, investors have basically carried out and operated their projects quite soon. Some major projects are expected to be launched in the province, including solar power projects in Ea Sup and Buon Don districts, wind power projects in Ea H'leo, Krong Buk, Krong Nang districts and Buon Ho town,  and a golf course and tourism complex in ​​Ea Kao Lake, Km7 Residential Area, Tan An Ward.

Competition in investment attraction is increasingly fierce. What are Dak Lak province’s solutions to improve investment outcome?

Given limited local budget, Dak Lak needs to mobilize investment capital from domestic and foreign investors to create a breakthrough in economic growth, economic restructuring, budget revenue, scientific and technological development and production and export boosts.

In order to further catch investment flows, the province has provided investors with full, consistent incentive policies on land lease, infrastructure, administrative procedures, training support and labor recruitment. It has announced the list of projects calling for investment in Dak Lak to investors; promptly handled emerging obstacles against investors when they carry out their projects; maintained regular government - business meetings and dialogues to assist and promptly deal with difficulties in investment projects, as well as concerns of investors, to further improve the local business investment environment.

How is sustainable investment boosted by Dak Lak province? What areas are encouraged?

The province is looking to select investment projects using modern and environmentally friendly technologies. Dak Lak province does not attract investment at any cost, but chooses projects fitting local conditions. With that approach, in the coming time, Dak Lak province will step up investment attraction in the following areas:

- Agriculture: Developing high-tech agriculture, expanding advanced scientific and technological application to production, processing, preservation and consumption of agricultural and forest products; encouraging large-scale husbandry projects developed with food processing industry.

- Industry: Prioritizing agricultural processing, renewable energy, supporting industries and cottage industries in rural areas.

- Tourism: Focusing investment capital to build high-quality resort and ecotourism resorts, hotels of 3-5 star standard

- Trade in services: Increasing investment fund to build and operate supermarkets and trade centers across the province.

- Education - training: Building new schools, facilities and equipment, and developing highly qualified teachers.

Thank you very much!

Three core factors to make Dak Lak a true destination for investors

1. Dak Lak is located in the center of the Central Highlands, one of development pillars in the Vietnam - Laos - Cambodia Development Triangle. Buon Ma Thuot City, a first-grade provincial city, is defined to be developed into a central urban area of ​​the Central Highlands. The province has convenient roads and airways connected with major economic centers such as Hanoi, Ho Chi Minh City, Da Nang, Hai Phong and other provinces and cities. This advantage helps Dak Lak expand exchanges of socioeconomic development and international cooperation, domestically and internationally.

Dak Lak province has a natural area of ​​13,123 km2, ranked fourth in the country, with fertile basalt soil accounting for over 40% of the area. Its major valuable agricultural products include rubber, pepper, avocado, durian, honey, medicinal plants, and especially coffee. Dak Lak has great potential for developing high-tech agriculture, ranching and post-harvest processing. The province has a lot of potential for tourism development with picturesque waterfalls, lakes, nature reserves, and wild elephant hunting and taming tradition. In particular, Dak Lak is one of the cradles to enshrine the cultural space of gongs in the Central Highlands, recognized by the UNESCO as an oral and intangible masterpiece of humanity. Dak Lak also has potential to develop solar power and wind power
With abundant and diverse natural resources, a dynamic young labor force and a major consumer market in the Central Highlands, Dak Lak is assessed to have great potential for foreign economic development and investment cooperation.

2. Investing in Dak Lak province, investors will enjoy higher investment incentives than many other localities. Apart from Buon Ma Thuot City, an investment-incentivized area, all districts and towns in the province are entitled to special investment incentives. Accordingly, investors will get the highest preferences stipulated by the Government. Beside preferential policies provided by the Government of Vietnam, investors will be entitled to localized investment incentives. Particularly, when they invest in the socialized sector, investors will be entitled to 25-year land rent exemption and 70% reduction of land rents in business wards in Buon Ma Thuot City; a 25-year land rent exemption and 85% reduction of land rents in suburban communes in Buon Ma Thuot City; and 100% exemption in other areas in the province

3. The Provincial People’s Committee has spared no effort to improve the business investment environment, work out plans to improve the Provincial Competitiveness Index (PCI), raise the working performance of the single-window mechanism, assist investors to carry out licensed projects. Besides, the provincial government helps businesses and investors to deal with difficulties and obstacles and delivers this in various forms such as business dialogue conferences.