Lao Cai as an attractive investment destination

>> Lao Cai serves as a hub for trade connectivity

Mr. Trinh Xuan Truong said that Lao Cai is viewed as a gateway not just to Vietnam, but also to ASEAN countries, with markets in Yunnan Province and southwestern China.

- Lao Cai has many favorable business conditions. Can you tell us about some of Lao Cai's distinctive advantages?

Lao Cai province's natural resources, as well as its geoeconomic, military, diplomatic, and political location, provide tremendous potential for economic growth. With its position as a hub for vertical connectivity of the Kunming-Lao Cai-Hanoi-Hai Phong-Quang Ninh economic corridor, as well as east-west horizontal connectivity between Northern Vietnam provinces bordering China, Lao Cai has well developed its role as an economic and cultural "bridge," opening up a potential and vast growth space for the region and country.

Lao Cai has a convenient and diversified transportation network, including the National Highways (70, 4D, 4E, 279); the Noi Bai-Lao Cai highway; the Hanoi-Lao Cai-Kunming railway, which will be rebuilt to a 1,435-meter cage; and the Red River waterway, which has advanced well. The 4C Sa Pa Airport, which has been authorized by the Prime Minister, would provide Lao Cai with a total of four modes of transportation connected directly to domestic and international markets, ushering in a new age and prospects for Lao Cai and the neighboring provinces.

Lao Cai's various natural features and pleasant climate make it an international tourist attraction. Sa Pa National Tourist Area, featuring a cable car that broke two world records, and Y Ty International Resort will help Lao Cao attract 15 million tourists, generating tourism earnings of 25–30% of GDP by 2030.

Lao Cai has a long history of success in the development of mining-related processing businesses, with over 35 types of minerals and 150 mining sites with significant reserves. Among these, Apatit Mines has reserves of more than 2.5 billion tons, which may be completely supplied for fertilizer production and contribute to our country's overall development strategy.

Lao Cai's copper mines contain more than 100 million tons of deposits, the largest in Southeast Asia. Lao Cai possesses the country's greatest resource of rare earth, a mineral that is critical to the growth of the world's high-tech engineering industry.

Furthermore, the Lao Cai Province's Master Plan for the period 2021–2030, with a vision to 2050, as authorized by the Prime Minister, serves as the foundation for luring investors to Lao Cai.

- Sir, one of the major reasons why firms and investors chose Lao Cai as their investment destination is the investment climate.

That's right! Previously, the Lao Cai province authorities endeavored to foster a transparent and welcoming investment climate. Lao Cai has improved the business and investment climate by administering the business support group and providing specialized solutions to help firms run smoothly. In addition to the provisions of the Central Government, Lao Cai province directed research into developing special preferential policies in accordance with current conditions, and it committed to allowing investors to benefit from all preferential policies to the fullest extent permitted by current legislation.

Lao Cai province also prioritizes and allows residents and enterprises to take advantage of the most generous incentives in line with applicable legislation, particularly those relating to corporate income tax, personal income tax, export-import tax, land rent, and water rent.

So far, 7,317 firms have obtained business registration certificates, with a total registered capital of VND 96,377 billion. The province approved an investment policy for 14 domestic projects totaling VND 6,325 billion, and 29 FDI projects totaling USD 730,399 million.

>> Fostering investment attraction into Lao Cai

- What sectors will Lao Cai prioritize to attract investment in the future, sir?

Lao Cai prioritizes high-potential investors and encourages enterprises to engage in high-tech applications, deep processing, support industries, and local labor-intensive industries. In transportation, Lao Cai will prioritize interregional connecting projects, particularly with provinces in the Hanoi Metropolitan Region and provinces that positively benefit Lao Cai's socioeconomic growth, including Yen Bai, Lai Chau, and Ha Giang.

Lao Cai also prioritizes attracting investments in cultural and social projects such as reconstruction, decoration, and promotion of special national monuments, national and provincial monuments, as well as the facilities of public health institutions, public vocational education institutions that are not self-sufficient in investment, and standard-level education and training facilities.

- Sir, how did Lao Cai prepare to continue improving its competitive advantages in order to attract investors to the province?

Lao Cai is currently focusing on the development of synchronous socioeconomic infrastructure systems, particularly transport systems, industrial parks, industrial clusters, electricity, water, urban, waste treatment, and information technology, so that businesses can access them all at a reasonable cost.

Lao Cai province has also prioritized the acceleration of key, breakthrough, and widespread transport initiatives such as the main traffic axes in municipalities, the Noi Bai-Lao Cai expressway with dynamic economic zones and routes connecting to Sa Pa Airport, economic zones, tourist areas, and other potential areas. It will finish the construction of the Sa Pa airport, which satisfies the 4C standard and is designed to be an international airport.

At the same time, we will build logistics centers and cooling infrastructure to store and circulate agricultural and fishery goods, develop industry portfolios to be prioritized in Lao Cai, and plan a modern industrial park to attract FDI inflows. 

Sincerely, thank you!