08:03, 06/04/2023
In recent years, Dak Lak has made many innovations in its approach to investors and foreign direct investment (FDI) through advertising and investment promotion activities. However, according to the assessment, the results achieved are still not commensurate with the expectations and potential of the province.
Open to investors
Not only stopping at visiting and learning about potential countries, in recent times, the province has coordinated with other sectors and localities to organize many conferences to promote and cooperate to create incentive mechanisms and investment opportunities. The province also organized receptions and worked with many businesses, corporations, and investors to learn about and choose investment opportunities in the province. Typically, in 2022, many delegations of large corporations were welcomed and introduced to investment opportunities. The province also promptly answered questions and removed difficulties in investment activities.
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| Ngon Coffee Company Limited (Cu Kuin district) was built by Indian investors. ( In photo : Provincial leaders visit the production line at Ngon Coffee Company Limited). |
Up to now, Dak Lak has granted investment registration certificates to 22 projects (outside industrial parks), with a total registered capital of more than 595 million USD, implemented by investors from 8 countries: Singapore, Thailand, Korea, Japan, India, UK, USA and the Netherlands. Of which, there are 8 projects in the service and manufacturing sectors, with a total registered capital of more than 43 million USD; 6 projects in the wind power sector with an investment capital of more than 430 million USD; 6 projects in the agriculture and manufacturing sectors, with a total registered capital of nearly 117 million USD; 1 project in the environmental sector, with an investment capital of 4.4 million USD and 1 project in the education sector with an investment capital of 0.1 million USD.
In 2023, Dak Lak province will focus resources on calling for investment capital for two projects in the National List of projects calling for foreign investment in the 2021-2025 period approved by the Prime Minister, including: Agricultural product processing factory, with a total investment of 7 million USD; Mechanical manufacturing factory serving agricultural production, with a total investment of 22 million USD and other related projects. |
In 2022 alone, Dak Lak province has issued investment registration certificates for 2 projects, with a total registered capital of nearly 6.2 million USD, including: Pure water factory project, total registered capital of 0.65 million USD and KVD artificial eyelash factory, total registered capital of 5.5 million USD. At the same time, the province has received and adjusted 10 dossiers to adjust investment registration certificates, of which 8 projects changed implementation time, investment incentives, capital structure, objectives, scale, investor information; 2 projects increased registered investment capital by more than 23.3 million USD. The FDI capital implemented in 2022 is 106.9 million USD, net revenue reached 160.8 million USD. FDI projects have contributed to creating jobs for 1,067 workers, contributing 4.1 million USD to the state budget.
Still "difficult" and "stuck"
Despite many efforts, it must be frankly admitted that the province's FDI attraction results in recent years have not met expectations. The number of projects and FDI capital that the province has attracted in recent years is still limited, and the capital flow into the province is not large. Typically, in 2022, Dak Lak only attracted 2 FDI projects while many other localities across the country attracted FDI with a "breakthrough" in quantity and capital flow.
According to the Department of Planning and Investment, one of the obstacles that has become a "significant" reason for the province's FDI attraction not meeting expectations is the limitation of "clean" land with large scale to welcome projects with immediate investment and production needs. Because in the past, some projects have been allocated land, leased land, however, the implementation of investment and construction is still slow due to problems in compensation and site clearance, especially projects using large areas of agricultural and forestry land. Another reason is that the number of investors coming to learn about the investment environment and implementing investment is still low compared to the potential of the province; it has not attracted many "strong" investors in finance and technology, with potential. Besides, investment projects from developed countries and large corporations in the province are still modest. Foreign investors are small and medium enterprises, accounting for a high proportion.
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| The wind power plant cluster in Krong Buk district was built by an investor from Singapore. |
On the other hand, Dak Lak is a mountainous province with a large area and complex terrain; infrastructure has not been fully and synchronously invested; roads are degraded and damaged, making it difficult to transport and consume products. This reduces the connectivity between raw material areas and factories, production and processing facilities, increases costs, and reduces product competitiveness. This affects investment attraction, especially investment in remote areas, areas with particularly difficult economic conditions. Another important reason is that the current capacity of investment promotion officers in the province is still limited, lacking professionalism and depth in organizing and implementing investment promotion programs and activities.
The slow implementation of site clearance, bidding and auction procedures, causing difficulties for projects during implementation, is also a major "stumbling block" preventing FDI attraction from "breaking through". For wind power projects, the Government has not yet issued a new pricing mechanism, so investors have not been able to negotiate electricity purchase and sale prices with Vietnam Electricity Group.
The representative of the Department of Planning and Investment said that in order to improve the situation and increase the advantages of attracting FDI capital, one of the important tasks that the province is striving for is to focus resources on site clearance, investment in technical infrastructure, and creating many "clean" land funds to attract investment. In addition, creating open mechanisms and preferential policies in attracting investment is also being focused on implementation.
Kha Le
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