Lao Cai serves as a hub for trade connectivity

Mr. Trinh Xuan Truong -Deputy Secretary of the Provincial Party Committee, Chairman of the People's Committee of Lao Cai province presented Mr. YAMADA Takio - Ambassador Extraordinary and Plenipotentiary of Japan in Vietnam with the book "Intangible cultural heritage of the ethnic groups of Lao Cai province".

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That is the information shared with our reporter by Mr. Trinh Xuan Truong, Deputy Secretary of the Provincial Party Committee, Chairman of the Lao Cai Provincial People's Committee.

As you pointed out, Lao Cai offers a number of inherent advantages that attract foreign investment and stimulate economic growth. Would you kindly elaborate on these advantages?            

That's right! Lao Cai has "river's headwaters and top-notch mountains"; an international border gate in the city's core; a big area and low population density (natural area ranks 19^th among the 63 provinces/cities in the country and population ranks 54^th among the 63 provinces/cities). Lao Cai also possesses all modes of intra-provincial, inter-provincial, and international transportation (highways, trains, canals, and the Sa Pa airport, which is now under construction).          

Lao Cai, in particular, features well-known tourist locations, such as: Sa Pa town, which is akin to the Asian Alps and has been designated as a national tourism area by the Prime Minister; Bac Ha and Y Ty, which are slated to become national tourist areas in the future. Condé Nast Traveller Magazine named Sa Pa one of the world's 50 most beautiful towns in 2023.          

Lao Cai also has strengths in mining, with 35 types of minerals and 150 mines with considerable reserves. Lao Cai is one of eight important medicinal plant- producing locations in Vietnam. Lao Cai contains around 850 medical plant species, accounting for 21.5% of all medicinal plant species in Vietnam, including 70 rare medicinal plant species under protection. These medicinal plants are significant components in the manufacture of brand-name drugs, providing a big potential for Vietnam's pharmaceutical sector.            

Furthermore, Lao Cai province has implemented favorable policies to attract domestic and foreign firms. Investors benefit from advantageous rates governed by Vietnamese legislation, such as incentives on land rent, corporate income tax, personal income tax, export tax, import tax, labor subsidies, and site clearance for projects in the Border Gate Economic Zone...       

- What have been Lao Cai's recent achievements in terms of attracting foreign investment and economic development, sir?             

Lao Cai's economy has recently experienced exceptional growth, thanks to the active engagement of authorities at all levels, as well as the efforts of the business community. Lao Cai province's economic growth rate will reach 9.02% in 2022, placing 4/14 provinces in the region and 26/63 provinces and cities, up 3.57% from 2021. Lao Cai’s economic scale is expanding, with a target of about 68,000 billion VND in 2022, ranking 4^th among 14 provinces in the region and 42^th among 63 provinces and cities. Lao Cai Provincial People's Committee adopted the investment policy for 21 domestic projects totaling 5,927 billion VND in 2022.          

Lao Cai has also advanced key projects that would benefit the province's socioeconomic growth, such as the Sa Pa airport, the border bridge across the Red River in Ban Vuoc commune, the Phu Thinh bridge, the Lang Giang bridge, and the improvement of national and provincial road systems...         

Furthermore, Lao Cai province works closely with Chinese authorities to promote cross-border economic cooperation; remove barriers to trade, import and export of commodities; and maintain the Public Service Portal at Kim Thanh International Road Border Gate No.2 while efficiently conducting the "priority channel" for agricultural product customs clearance through the Kim Thanh (Lao Cai, Vietnam) - Bac Son (Hekou, China) international border gates.        

There are now around 7,000 firms in Lao Cai province, as well as 28 FDI projects with a total pledged capital of 685.84 million USD. Lao Cai also has a goal of having over 9,000 firms in the province by 2025, and over 16,000 businesses by 2030.       

- It is well known that the Dynamic Index of Local Government of Lao Cai province rated first in the country in VCCI's PCI report for 2022, making an essential contribution to boosting its investment climate and enhancing its competitiveness. Could you please elaborate on this fact?          

According to the 2022 Provincial Competitiveness Index (PCI) rankings, Lao Cai received 68.2 points, placing it among the provinces and cities with the top economic management quality (ranked 11^th among the 63 provinces and cities), up 14 places from 2021. Notably, Lao Cai province's Dynamic Index of Local Government scores the highest in the country. Other metrics have excellent ranks as well, with the Transparency Index ranking fifth out of 63 provinces and cities, the Access to Land and Land Use Stability Index ranking sixth, and the Market Entry Cost Index ranking eighth out of 63 provinces.

The officials of Lao Cai province exhibit dynamism and insight not only in their efforts to create regulatory frameworks that support economic activities but also in their regular convening of meetings aimed at removing obstacles and difficulties faced by businesses and investors.  

Lao Cai was ranked 10th in the Provincial Green Index (PGI), demonstrating the province's determination in controlling environmental pollution in industrial parks, as well as the consistent viewpoint of "not exchanging the environment for the economy," encouraging businesses to convert to new technologies with less negative environmental impact, while promoting deeper processing industry... The province also strengthens administrative reform, particularly procedures connected to investment, import-export, taxation, and so on, and eliminates unnecessary business conditions and procedures, making the search and enforcement process more convenient for people and enterprises.

Along with encouraging and inviting foreign-invested enterprises to connect with businesses in the province, Lao Cai province is developing mechanisms to support digital transformation, investment, trade and tourism promotion, and brand building. These efforts will help form and develop supply chains.  

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- The Government-approved Lao Cai provincial Master Planning for the period 2021- 2030, with a vision to 2050, will make a significant contribution to boosting local socioeconomic development in particular and the country in general. How do you assess the pillar plans and prerequisites for Lao Cai's economy to "take off"?

The development of Lao Cai as a hub for trade connectivity between Vietnam, ASEAN countries, and Southwest China is directed by the Politburo's Resolution 11-NQ/TW. Based on this, Lao Cai submitted the Lao Cai Provincial Master Planning with a vision for 2050 to the Government for approval, outlining four growth pillars: (1) border gate economy; (2) manufacturing and processing industry; (3) travel; and (4) agriculture and fisheries.

These four pillars of economic growth will determine if Lao Cai achieves the objectives outlined in the planning period. These are the main concerns that will help Lao Cai realize its goal of rising and giving space to establish itself throughout the nation, especially in the northern midland and mountain regions of Vietnam. The implementation of these pillars effectively would accelerate Lao Cai's transformation into a commercial hub connecting Southwest China, Vietnam, and the ASEAN countries.      

As a result, the following conditions must be met for Lao Cai to "take off" in the near future:         

First, Lao Cai will promote tourism with an emphasis on making Sa Pa National Tourist Area a world-class destination while making Y Ty (Bat Xat), Bac Ha into a national one-of-a-kind tourist destinations; developing the Bao Ha (Bao Yen) - Tan An (Van Ban) areas to become a regional and national cultural and religious tourism hub. Arrangements are being made to connect the tourism areas of Sa Pa, Y Ty, and Lao Cai. Lao Cai will create a broad tourism product system to service local and international markets, with typical tourism items available in three primary tourist locations.        

Second, Lao Cai will expand the border gate economy and services, transforming Lao Cai into a leading logistics center in the country, as well as a trade hub connecting ASEAN countries with the Southwest China market.       

Third, Lao Cai will develop the processing and manufacturing sectors, and focus on sectors connected with extracting minerals with considerable reserves, such as apatite, copper, iron, and rare earths while prioritizing the growth of the processing industry, which produces high-tech, ecologically beneficial goods. Besides, Lao Cai must develop the agriculture and forestry products in conjunction with the growth of raw material areas and consumer markets...        

Fourth, agricultural, forestry, and fisheries development will be linked to the agricultural value chain. Besides, improving agricultural product quality must go hand in hand with increasing the value and prestige of local agricultural products...

Sincerely, thank you!