All roads lead to Lai Chau

Being held the first time in Lai Chau, the Investment Conference today chaired by Prime Minister Nguyen Xuan Phuc, is a part of a variety of events to promoting investments and tourism, jointly organised by the Lai Chau People’s Committee, the Ministry of Planning and Investment, the North-West Steering Board where PM Phuc used to serve as a deputy chairman, and Bank of Investment and Development of Vietnam (BIDV).

The conference will be followed by the Lai Chau’s Tourism and Culture Week, taken place from April 27 until April 30.

“Over the last decade, the province has made impressive transformation in terms of infrastructure, improving minor ethnic minorities’ living,” said Phuc.

Lai Chau is potential for agriculture and forestry development, in particular tea plantation and processing, as well as planting vegetables, flowers and medical plants. The northern province also owns great advantages in terms of trade and tourism development, brought by favourable climate and landscape. Besides, rich natural resources (reserves of copper, gold, lead, oxides and limestones quarries enable the development of the mining industry.

Earlier this year, the provincial authorities approved a master plan of 21 key investment projects for the 2016-2020 period, with the total investment capital mobilised from foreign and local investors reach VND3.81 trillion ($174.5 million).

In particular, Lai Chau plans to call for VND635 billion ($29.1 million) to develop tea plantation and processing facilities, VND1.97 trillion ($90.37 million) to develop urban infrastructure and $28.03 million for trade and tourisms projects. Investors shall enjoy preferences on tax exemption and reduction of corporate income tax (CIT) and import-export duties for these projects.

Specifically, CIT will be at a low of 10 per cent for 15 consecutive years for newly established enterprises from the first year getting revenue from activities eligible for tax incentives. In addition, commodities in various case will be exempted from import duties, for instance to form fixed assets for investment projects or plant varieties and animal breed for agriculture, forestry and aquaculture projects.

Besides preferences on investment credit and export credit, investors are guaranteed to receive supports regarding labour training, construction of technical infrastructure, market development and science and technology application.

Since 2004, Lai Chau attracted 124 projects with the total capital registered VND204.9 trillion ($9.4 billion), with the majority of projects building hydropower plants.

“Recognising the potentials of Lai Chau in particular and the North-West region in general, BIDV initiated the investment promoting activities to connect the local authority with investors of interests,” said Tran Bac Ha, BIDV’s chairman.

The bank pledged that it would help financing promising projects with preferential loans package throughout every stage of project implementation.