Industry - A Spearhead Economic Sector of Dak Nong Province

Dak Nong Province has a large basalt soil area, perfect for growing perennial trees like coffee, pepper, cashew, rubber and tea, boosting the development of processing industries. The terrain is also conducive for the erection of hydropower plants. In addition, the forest and mineral resources (bauxite, wolfram, kaolin) are also valuable inputs for the industrial production of Dak Nong Province.

 

At present, Dak Nong Province has the 181-hectare Tam Thang Industrial Park, which cost VND170 billion for development. So far, the zone has six factories in operation, one project preparing for operation, one underway and 14 others licensed to build plants. In the coming time, the province will set up other industrial zones like Nhan Co and Sung Duc, and build factories, enterprises and farms throughout its territory.

 

The Nhan Co industrial complex will cover 2,020 hectares in Dak R’Lap District, including 95 hectares in the first phase. The 50-hectare Dak La industrial and handicraft complex will be built in Dak Glong District, consisting of 28.983 hectares in the first phase. Currently, site clearance and land compensation are being conducted, and housing for the first tenants will soon be ready. The province is also building new residential zones for resettled people. Dak Nong Province advocates building industrial and handicraft complexes in its districts and Gia Nghia Town.

 

Recently, investment incentive and support policies have encouraged all economic sectors to set up production projects like the peanut processing project developed by Pagoda Co. Ltd, a joint venture between Vietnam and Malaysia capable of processing 7,000 tonnes a year; the woodwork production project invested by Hung Thinh Co. Ltd, capable of processing 6,000 cubic metres of timber annually; and the pulp and paper production project invested by Vinh Hue Joint Stock Company, designed to produce 3,000 tonnes of pulp and 2,000 tonnes of paper per annum.

 

The hydropower sector is being expanded with the construction of various plants like the 84-MW Tau Srah plant costing VND2,237 billion (US$140 million), 220-MW Serepok 3 and 520-MW Dong Nai 3 and 4, costing VND9,412 billion (US$588.25 million). The province has about 40 locations suitable for construction of small and medium hydropower plants. Dak Nong Province has large reserves of bauxite for ferrous metal production. Currently, a bauxite project with designed capacity of 300,000 tonnes a year in Nhan Co commune is being developed by Vietnam Coal and Mineral Industries Group (Vinacomin).

 

In the next five years (2006-2010), Dak Nong Province aims for industrial growth of 58.58 per cent and raising industrial output value to VND3,911 billion (US$244.4 million). Total investment capital for the five-year industrial development is estimated at VND22,500 billion (US$1.4 billion). All villages and 95 per cent of households have access to the national electricity grid. In the near future, the province will exploit the soil, forest resources, water sources, hydropower, minerals and eco-tourism advantages. In addition, Dak Nong focuses on reforming the administrative apparatus and improving administrative facilities. The Dak Nong Province People’s Committee has introduced many policies to attract investment capital from all economic sectors, especially from enterprises in the south-eastern region and Ho Chi Minh City.

 

Bauxite production projects, mineral and water processing factories are being built and will be put into operation soon, turning Dak Nong into a strong economy in the Central Highlands, and Vietnam as a whole.

 

In 2006, Dak Nong posted 12 per cent economic growth, in which forestry grew 7.2 per cent, industry and construction 25 per cent and services 23 per cent. The economic structure was 75.2 per cent of forestry and agriculture, 11.4 per cent industry and construction, and 13.4 per cent services. Export revenue was US$30 million and the budget collection was VND110 billion (US$7 million). A total of 7,800 jobs were created and the poverty rate was reduced to 12.4 per cent in 2006.