With a lot of advantages, Lao Cai is an up and coming destination for investors, as seen by the $5.3 billion investment it just approved.
|Lao Cai offers a rich cultural experience through its 25 ethnic minority groups |
$5.3 billion into the northern mountainous province
Witnessing the signing ceremony between the Lao Cai People’s Committee and enterprises for the total investment of $5.3 billion and handing over in-principle approval for $1 billion projects on July 20, 2019, Prime Minister Nguyen Xuan Phuc was overjoyed.
He said that Lao Cai is a golden land in the northern area of the country. The province is a bustling and vibrant land with international and domestic trading activities.
In the northern mountainous area, Lao Cai has numerous advantages for developing industry, agriculture, and services (especially tourism).
There are valuable natural resources like mountains, forest, rivers, hot springs, 50 of Vietnam's rare plant species, a treasure trove of rare and precious animals and plants, in addition to the unique culture of 25 ethnic groups.
Sapa in Lao Cai has been known as the misty town of unutterable natural beauty. In the 1920s, the town was dubbed “the summer capital” of the north and has been a famous tourism destination ever since.
The PM highlighted that Sapa is a promising land for tourism, and requested the province to accelerate development in this direction. “The natural beauty is a resource that cannot deteriorate or be depleted by the gazes and enjoyment of the people. Unless it is unconsciously destroyed and is under bad management or exploited incorrectly, it will become even more beautiful and precious through promotion,” the PM said.
Although developing rapidly, Lao Cai has managed to retain its diverse landscapes and clean environment. “Without these, Lao Cai will lose,” the PM emphasised.
|Lao Cai province signed with investors bringing a total of $5.3 billion to the province |
Attractive investment climate
In the last three years, Lao Cai has granted investment certificates for hundreds of projects with the total investment of over VND100 trillion ($4.35 billion), granting entry to giants like Sun Group, Bitexco, and Alphanam – all thanks to the improvements in the province's investment climate. In 2018, Lao Cai ranked 12th in the Provincial Competitiveness Index (PCI), and the first among the northern mountainous provinces.
According to the Lao Cai People's Committee, gross regional domestic product (GRDP) growth during 2016-2018 was maintained high and stable at around 10.1 per cent. GRDP per capita rose from VND43.7 million ($1,900) in 2015 to VND61.84 million ($2,690) in 2018, equalling the average of the country. The province's economic structure focuses on industry-construction and services, which make up 87 per cent of the total GRDP.
In the first half of this year, the key indicators of the province's socio-economic development have achieved and surpassed the same period last year as well as the target set forth in GRDP growth, the number of tourist visitors and tourism revenue, tax contributions.
In the time coming, Lao Cai's FDI mobilisation strategy will concentrate on urban development, logistics, the development of border gate economic zones, agriculture, industry, and tourism.