Expecting Lam Dong to break through the 'iceberg' in attracting investment

Việt NamViệt Nam13/09/2024


Recently, Prime Minister Pham Minh Chinh signed Decision No. 956/QD-TTg approving the election results for the position of Chairman of Lam Dong Provincial People's Committee for the 2021-2026 term for Mr. Tran Hong Thai, Deputy Secretary of Lam Dong Provincial Party Committee.

At the same time, at the 17th Session of the 10th Term of Lam Dong Provincial People's Council held on August 23, 2024, Ms. Pham Thi Phuc, Member of the Standing Committee, Head of the Provincial Party Committee's Mass Mobilization Commission, was elected to hold the position of Chairwoman of Lam Dong Provincial People's Council for the 2021-2026 term.

Kỳ vọng Lâm Đồng bứt phá để phá vỡ ‘tảng băng’ trong thu hút đầu tư
Prime Minister Pham Minh Chinh speaks at a working session with Lam Dong province on August 25, 2024. Photo: Le Son

Thus, the leadership of Lam Dong province has been strengthened. This is the premise and basis for the province's political system to strengthen leadership, direct the implementation of key tasks, resolve difficulties and challenges, and develop Lam Dong commensurate with its potential and advantages. Especially, regaining the position of a leading province in the Central Highlands region in terms of GRDP growth.

Challenges "surrounding" Lam Dong

Located in the Southern key economic zone, a dynamic area with high economic growth rate and a market with great potential, the area ranks 7th in the country, diverse terrain, fertile land, temperate climate, especially the strength of developing high-tech agriculture.

In addition, there is also potential for tourism development, processing industry, energy, mining and mineral processing. The transportation system is convenient and quite synchronous; there is a fairly abundant human resource with a developed education and training system...

Kỳ vọng Lâm Đồng bứt phá để phá vỡ ‘tảng băng’ trong thu hút đầu tư
Cam Ly Hydropower Project in Da Lat City is facing difficulties in the transfer process. Photo: Le Son

However, currently looking at some socio-economic indicators of this locality, many people cannot help but be surprised and can feel that the picture is not really bright.

Specifically, in the first 6 months of 2024, Lam Dong only attracted 1 investment project, the economic growth index in the area (GRDP) of the province "hit rock bottom" in the Central Highlands region (while in previous years, Lam Dong always ranked first in the Central Highlands provinces in terms of GRDP index), ranking 58/63 provinces and cities nationwide.

According to the provincial People's Committee, business operations are facing many difficulties; the number of newly established businesses has decreased in both quantity and registered capital. Specifically, there were 582 newly established businesses with registered capital of VND 2,676 billion, down 14% in number of businesses and 30.7% in registered capital compared to the same period. Meanwhile, the number of businesses registering to temporarily suspend operations has increased (578 businesses), up 26.5% compared to the same period.

It must be reiterated that Lam Dong's 2023 Administrative Reform Index ranked 46th nationwide, down 31 places; the Provincial Competitiveness Index (PCI) ranked 56th out of 63 provinces and cities, down 39 places compared to 2022.

According to the report, the state budget collection situation in the province has shown positive signs. The total state budget revenue in the first 8 months of 2024 reached 68% of the central estimate and 63% of the local estimate, but it is forecasted that the last months of the year will face many difficulties.

Discussing Lam Dong's competitiveness index in recent times, Comrade Nguyen Thai Hoc, acting Secretary of Lam Dong Provincial Party Committee, frankly admitted: "Many people say that it is a free fall, not a decline. From 17th to 56th place is a problem that makes us wonder why we are like this."

Need to eliminate factors that hold back the investment environment

Why is it that a locality that has been ‘given’ a series of favorable conditions to invite domestic and international investors to “invest” in production and business is still hesitant for the “eagles” to come and make a “nest”? Meanwhile, Lam Dong or any locality must comply with the regulations of the legal document system equally. Perhaps, one of the reasons lies in the way the law enforcement system operates, of state management agencies and the mechanisms and policies to support and encourage the creation of a healthy, transparent and sustainable investment environment.

Kỳ vọng Lâm Đồng bứt phá để phá vỡ ‘tảng băng’ trong thu hút đầu tư
Deputy Minister of Industry and Trade Nguyen Hoang Long speaks at a working session with Lam Dong province on August 25, 2024. Photo: Le Son

At the meeting and dialogue with businesses operating in the locality in 2024 held on June 22, 2024, Comrade Nguyen Thai Hoc, Acting Secretary of Lam Dong Provincial Party Committee, admitted that in the past, the coordination between officials, authorities at all levels and businesses was sometimes not good, did not show sharing and companionship, lacked goodwill, and lacked concern for businesses in reviewing and handling investment procedures, and removing difficulties and obstacles.

In the land sector, a report by the Department of Natural Resources and Environment of Lam Dong province shows that in 2023, Lam Dong's land access index decreased by 1.41 points, down to 6.42 points. 48% of enterprises reported that officials receiving documents and handling land administrative procedures did not provide detailed and complete instructions; 38% of enterprises reported that procedures for determining land use rights value took a lot of time; 71% of enterprises had to delay/cancel business plans due to difficulties in carrying out land administrative procedures.

Kỳ vọng Lâm Đồng bứt phá để phá vỡ ‘tảng băng’ trong thu hút đầu tư
Millions of cubic meters of sand are waiting to be auctioned. Photo: Le Son

In the field of mineral exploitation and recovery, there is a paradox of millions of cubic meters of sand from enterprises dredging hydroelectric and irrigation reservoirs, etc., for common materials that cannot be brought to the market because they are waiting for auctions. This leads to a shortage of supply and the price of construction sand is higher than in neighboring provinces. This is the reality happening in Lam Dong. It is not known when the difficulties and inadequacies in the management, exploitation and use of minerals in Lam Dong will be resolved.

Another thing, a company operating in the hydropower sector “complained” that it had never done the procedures to request a project transfer or change the investor for a hydropower project in Da Lat City, which was so difficult, arduous, and “complicated”. The company had submitted 4 requests and appealed to the province for help, but so far it has not been resolved.

To resolve the shortcomings and inadequacies, more than ever, Lam Dong province needs to create a friendly, professional and open space for the government, people and businesses to join hands and unite to successfully achieve the set goals. In particular, it is necessary to implement the Lam Dong Provincial Planning for the period 2021 - 2030 and vision to 2050, creating a solid foundation for comprehensive and sustainable development. Businesses in the area also need to be treated fairly and given maximum conditions to develop production and business, thereby bringing revenue to the locality.

Kỳ vọng Lâm Đồng bứt phá để phá vỡ ‘tảng băng’ trong thu hút đầu tư
Lam Dong province's tourism industry still maintains growth. Photo: Le Son

Especially in the context that Lam Dong province is urgently preparing to invest in many important projects, such as the Tan Phu – Bao Loc, Bao Loc – Lien Khuong and Nha Trang – Da Lat expressways. The intra-regional and inter-regional expressway projects play a very important role in exploiting the potential of Lam Dong, the Central Highlands provinces and other regions.

Acting Secretary of the Provincial Party Committee Nguyen Thai Hoc affirmed: In the upcoming journey, Lam Dong province in particular and other localities cannot be without businesses and investors. Lam Dong province also always strives to have an open, transparent, effective investment environment, in compliance with the provisions of the law...

The Provincial Party Secretary made 3 decisions that Lam Dong authorities are determined to unify and commit to accompany businesses from awareness to action, which are: Follow the provisions of the law, respect what is right, respect the law; do not avoid, push, do not dare to do in the government staff. Implement Directive 34-CT/TU of the Provincial Party Standing Committee on 3 things to do and 4 things to avoid... At the same time, request authorities at all levels not to let businesses wait too long, do not coldly reply that the project has not been approved, agencies must coordinate with each other. The government must work with relevant parties, consider the proposals of businesses...

The government pays special attention to Lam Dong.

In late August and early September 2024, it was no coincidence that Prime Minister Pham Minh Chinh and Deputy Prime Minister Tran Hong Ha had consecutive working sessions with Lam Dong province to direct and find solutions to remove the existing problems, shortcomings, and obstacles that the locality is currently facing.

In addition, the Prime Minister acknowledged the efforts of the Party Committee, government and people of Lam Dong province in recent times, contributing to the country's development.

On the contrary, the Prime Minister also emphasized that Lam Dong province "must look straight at the truth" to identify the difficulties, challenges, and limitations that need to be resolved such as: Economic development is not commensurate with its potential; economic transformation is slow; mechanisms and policies are still limited; competitiveness has somewhat declined; FDI attraction has not reached the set target; investment capital disbursement is still slow; economic and social infrastructure, especially transport infrastructure, has not met development needs, and connectivity is not high. Management and use of resources, environment, land, minerals, forest protection, etc. still have errors and inadequacies; natural disasters are complicated. The lives of a part of the people are still difficult...

The Prime Minister affirmed that Lam Dong still has a lot of room, potential and opportunities for breakthrough development in the coming time. Therefore, the Prime Minister requested that based on functions, tasks and powers, we need to proactively and actively support Lam Dong in the spirit of sharing, together solving difficulties and problems, "not saying no, not saying difficult, not saying yes but not doing".

Source: https://congthuong.vn/ky-vong-lam-dong-but-pha-de-pha-vo-tang-bang-trong-thu-hut-dau-tu-345728.html


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