New "Position" and "Force" in Development Investment

The image of a strongly developing, modern and sustainable Lao Cai is increasingly appearing…

Lao Cai is the source of rivers, the highest mountains, in the center of the region, has a large border gate, diverse ethnic cultures, rich in identity; famous landscapes, rich minerals. With a large international border gate, Lao Cai has a full range of infrastructure, a developed service system, convenient for the needs of trade, import - export, tourism and services.

Lao Cai is the source of rivers, the highest mountains, in the center of the region, has a large border gate, diverse ethnic cultures, rich in identity; famous landscapes, rich minerals. (Photo: Van Tuyen)

Trusted gateway and important transit point

Lao Cai is a mountainous, border province in the North of Vietnam, with a special geographical location and a diverse transportation network. It is located between the Northwest and Northeast regions. The province has a strategic position in the Kunming - Lao Cai - Hanoi - Hai Phong - Quang Ninh economic corridor, which is the shortest and most effective sea route for goods from the Yunnan - China market to the Southeast Asian and East Asian markets and vice versa.

Lao Cai has diverse natural conditions and favorable climate to become an international resort destination, the number of tourists reaching an average of over 5 million visitors, the number of tourists to Lao Cai in the period 2010-2020 leading the Northwest region; the tourism economy has contributed 15% of the total GRDP of the whole province.

It is expected that by 2030, Sa Pa National Tourist Area with the cable car line achieving 2 world records, along with the Y Ty International Resort under investment, will bring Lao Cai to welcome 15 million tourists and tourism revenue will account for 25% - 30% of GRDP.

Lao Cai is increasingly developing with worthy economic and tourist centers. (Source: Vietnamnet)

Lao Cai has a long-term strength in developing processing industry associated with mining activities, with over 35 types of minerals, 150 mines with large reserves, including: Apatite ore with reserves of over 2.5 billion tons, copper ore with reserves of over 100 million tons, leading in Southeast Asia. The copper smelting complex with a capacity of 30,000 tons/year has met 25% of domestic demand, helping the industry reduce nearly 300 million USD in raw material imports.

In addition, the most modern copper rolling mill in Southeast Asia with a capacity of 60,000 tons of electric cable products/year for export to the European market started construction in March 2022. Iron ore reserves of over 120 million tons with Quy Sa iron mine, the second largest in Vietnam, is the source of raw materials for Lao Cai Iron and Steel Factory (expected capacity of 1,000,000 tons/year) providing steel billets for the domestic and export markets.

In particular, along with Lai Chau, Lao Cai has the largest rare earth reserves in the country, a mineral that plays a strategic role in the development of high-tech industries in the world.

This locality has the conditions to play the role of a focal point to promote economic relations between the provinces in the region and Yunnan province - China. This is a long-term advantage for Lao Cai to become a reliable gateway and an important transit point for goods on the economic route of Kunming - Lao Cai - Hanoi - Hai Phong - Quang Ninh.

Lao Cai is also a prominent locality with infrastructure plans that are being and will be completed. (Source: VGP)

Open investment environment , synchronous infrastructure

With the above great potential and advantages, in recent times, Lao Cai authorities have made efforts to build an open and transparent investment environment, creating the most favorable conditions for investors.

The province has implemented many synchronous solutions to improve the investment and business environment, such as: Effectively operating the Enterprise Support Team; researching and proposing specific solutions to support investment and business activities of enterprises, contributing to enhancing the reputation of the locality with the business community inside and outside the province, creating trust for enterprises to expand investment and business in Lao Cai.

In addition to the central government's regulations, the province also directed the research and development of specific incentive policies during the period, suitable to the actual conditions when domestic and foreign enterprises and investors come to invest in business and production in the area, committed to creating conditions for investors to enjoy all incentives at the maximum level according to current regulations of the State.

The province also prioritizes and allows the highest incentives according to current relevant regulations, especially incentives on: corporate income tax, personal income tax, import-export tax, land rent, water surface rent, etc.

Lao Cai is also a prominent locality with infrastructure plans that are being and will be completed.

In September 2023, on the occasion of the 120th anniversary of Sa Pa tourism, the project connecting Noi Bai - Lao Cai expressway to Sa Pa, with the highlight being Mong Sen bridge - the overpass with the highest pylon in Vietnam - officially opened to traffic.

Along with that, the project to expand the Hanoi - Lao Cai expressway from Yen Bai to Lao Cai to 4 lanes, the project to connect Lai Chau with Noi Bai - Lao Cai expressway at IC16 intersection implemented by the Ministry of Transport is also speeding up the construction progress. The connecting route has a total length of 147km with the section through Van Ban district being 68km long.

These are projects that create momentum for the development of the entire region with the ability to shorten travel time between Lao Cai city and SaPa, Lai Chau and surrounding areas, making Lao Cai a central connecting city.

In terms of cross-border infrastructure, the project to build a road bridge across the Red River in the border area of ​​Bat Xat (Vietnam) - Ba Sai (China), connecting the railway between Lao Cai station (Vietnam) and Ha Khau Bac station (China) is also in the process of being urgently implemented. When completed, this will be one of the boosts to trade and economic growth for the border city.

In particular, the Sapa Airport project with a capacity of 3 million passengers/year by 2025 is also one of the plans to create a breakthrough for local development. With a total investment of nearly 7,000 billion VND, when the airport is put into operation, it will turn Lao Cai into an international tourist destination with all types of transportation (road - waterway - rail - air). This also helps to elevate Lao Cai's position as an important economic bridge in the Mekong Subregion, including Vietnam, Laos, Cambodia, Thailand, Myanmar and Yunnan and Guangxi provinces (China).

Sapa is a bright spot for tourism in Lao Cai. (Source: Vneconomy)

The economy "stretches out"

From the poorest province in the country, up to now, Lao Cai province's economy has risen to become the leading province in the Northwest region and ranked first among 14 provinces in the Northern midland and mountainous region. The economic growth rate has continuously increased, averaging 10.4% per year from 1991 (the time the province was re-established) to 2020; total state budget revenue in the area in 2020 reached 9,172 billion VND (252 times higher than in 1991), average income per capita reached 76.3 million VND (112 times higher than in 1991), the economic structure has shifted in the right direction.

The province's culture and society have developed comprehensively, with steady steps; education and health have made remarkable progress. The poverty reduction rate has decreased sharply, people's lives have been increasingly improved, and the face of the countryside has been increasingly renewed. Many economic sectors and fields continue to maintain their growth momentum, in which the agricultural and forestry sectors have played a good role in supporting the economy; the mindset of producing agricultural products has initially formed and spread, and more and more products are being granted OCOP certification.

In addition, Lao Cai province's Provincial Competitiveness Index (PCI) is always ranked high in the country; it is the first province to announce the District Competitiveness Index (DCI).

Thanks to its location, resources, and tourism advantages, Lao Cai is also an attractive investment destination for foreign capital with 27 valid FDI projects, with a total registered capital of nearly 686 million USD. In terms of tourism alone, the province has attracted over 40 large-scale investment projects with a total investment of about 50,000 billion VND.

In addition, in the vision of socio-economic development, along with the goals of training business teams, administrators, industry experts, start-up programs, strengthening friendly diplomatic relations with China, Korea, Belarus, France... in 2024, Lao Cai will have 800 more businesses.

The socio-economic development picture of the border city continues to have many bright spots. In the first 6 months of 2024, Lao Cai's economic growth rate reached 5.62%, 1.28 points higher than the same period in 2023. Strong sectors such as industry, construction, and import-export have not yet made a breakthrough. State budget revenue in the area in the first half of the year reached over 4,700 billion VND, higher than the same period last year, but only reached 37% of the province's plan this year.

With determination and endogenous strength, the government, people and business community are joining hands towards a strong, modern and sustainable Lao Cai.

Source: https://baoquocte.vn/lao-cai-the-va-luc-moi-trong-dau-tu-phat-trien-283983.html