Lao Cai Province Offering Highest Incentives to Investors

Understanding the importance of the Kunming-Lao Cai-Hanoi-Haiphong economic corridor for Vietnam’s economic development as a whole and the development of Lao Cai province in particular, the Lao Cai Department of Planning and Investment has made proposals on long-term economic strategies and plans of the province, helping it fully tap its advantages and potential as a bridge linking Vietnam, ASEAN and the large southwestern region of China.

 

Over the past few years, the Lao Cai border gate economic region has made great progress, contributing significantly to the province’s economic growth rate, boosting trade exchange via border gates to increase incomes for the province’s budget and helping expand the province’s international co-operation. Lao Cai is the only border gate between Vietnam and China to have railway, roads and waterway routes. Located in the centre of Lao Cai City with the well-developed infrastructure facilities of a 100,000 resident city, the Lao Cai border gate economic region is highly valued by the Government, ministries and agencies of Vietnam due to its important role in the north of Vietnam. Therefore, the border gate has been allowed to expand to become a major international border gate, meeting all the trade exchange demands of Vietnam with China and ASEAN countries.

 

To fully tap its potential and advantages and attract resources to Lao Cai province and its border gate economic region, apart from priorities policies issued by the Government, Lao Cai’s authorities have offered their highest incentives to Vietnamese and foreign investors. These include incentives and priorities in land use right auction, priorities for projects developed in the province’s four economic zones within the Lao Cai border gate economic region, simplified procedures for business and investment licences in Lao Cai. At the same time, authorised agencies advised the provincial People’s Committee to review and amend policies relating to import and export activities, thus helping reduce costs, as well as co-operate with China to extend working hours at the border gate for promoting the import and export activities of enterprises.

 

The Lao Cai Department of Planning and Investment with its function of generalising information about investment activities in the province and advising the province to promote its call for investment, develop lists of projects, promote development programmes and plans of the province’s main economic regions. It also advises the province to co-operate with ministries and central agencies to organise international seminars and conferences, including ‘Lao Cai – a bridge linking with Yunnan province of China,’ ‘Lao Cai – Investment and development opportunities’ and ‘Lao Cai attacking poverty and hunger,’ and the 2003 mid-term meeting of Vietnam Consultative Group, and many other events, including a ceremony to launch the master plan of the Sapa tourism and urban area with an aim to promote and introduce Lao Cai to donors, investors, international organisations and friends.

 

Also, the province has always attached importance to potential markets, such as ASEAN and the EU. As Vietnam increasingly joins the ASEAN Free Trade Area (AFTA) and the World Trade Organisation (WTO), the province has asked the Government for permission to expand its co-operation with countries and regions, such as the Aquitaine region of France in master planning Sapa tourism and urban areas, developing flowers and fruit trees in Sa Pa and Bac Ha, with the Vancouver University Association in developing community tourism and training to gradually build the Lao Cai Community University. At the same time, the province has boosted its co-operation with cities and provinces nationwide to exploit the potential and advantages of each locality for socio-economic development.

 

Furthermore, co-operation between Lao Cai province and Yunnan province in China has been boosted, in particular to develop investment co-operation programmes and exploit the Kunming-Lao Cai-Hanoi-Haiphong economic corridor. Accordingly, Lao Cai province and Yunnan province have agreed to develop and sign a project on the Lao Cai-Honghe economic co-operation zone with an aim of boosting economic co-operation, exploiting the advantages of each side for mutual development, building the zone into a major goods hub in Vietnam, ASEAN and the western region of China.

 

With open policies and incentives offered to enterprises, partners, the economy of Lao Cai province has changed for the better, creating a momentum for the province’s socio-economic development and contributing to the country’s poverty and hunger reduction.