Maximizing the effectiveness of investment resources

In order to draw in investors, Lao Cai province is focusing on transportation infrastructure, making plans for land and unused land reserves within the province, reforming administrative procedures decisively, and speeding up the implementation of the provincial planning for the 2021–2030 period with a vision toward 2050.

Lao Cai province is a popular destination for both foreign and domestic investors. Which aspects of the province, in your opinion, are most important for drawing in investment and growing the economy?

In order to connect, encourage investment, and give investors the best possible support, the province established the Center for Trade and Investment Promotion and Business Support.

Lao Cai is speeding up the construction of important transportation projects to increase its appeal to investors, like the Sa Pa Airport, the standard gauge railway project from Lao Cai to Hanoi to Hai Phong, and the expansion of the Noi Bai-Lao Cai Expressway. By strengthening Lao Cai's connections to major seaports, airports, and commercial hubs, these significant projects increase production capacity and facilitate trade, tourism, and services. Furthermore, the province is building the Ba Sai Bridge, Phu Thinh Bridge, Lang Muc Bridge, and other infrastructure projects in the Ban Qua Industrial Park and the Thong Nhat and Coc My industrial clusters.

Lao Cai has released guidelines to help companies and investors take advantage of the best incentives available under the government's current regulations. These include incentives related to import-export taxes, corporate income tax, personal income tax, land rental, and water surface rental. Additionally, the province is researching and creating specific incentive policies to draw in investment into its strategic areas.

Many investors, including Sungroup, T&T, Geleximco, Bitexco, and TNG, have invested in the province as a result of Lao Cai’s efforts to promote investment and accompany enterprises.

In 2024, Lao Cai issued new registration certificates for 668 businesses and 58 related units, totaling VND 6.553 trillion in registered capital; it also approved investment policy decisions for 20 projects totaling VND 5.95 trillion. With a total registered capital of VND 103,082 billion as of December 31, 2024, 8,007 firms in the province had received business registration certificates, an increase of 8.1% over the same time the previous year. There are now 28 FDI projects in operation in the province of Lao Cai, totaling USD 727.834 million in registered capital.

The year 2024 has seen positive developments in Lao Cai's socioeconomic status. The commerce and service sector grew by 9.65%, while the manufacturing sector did rather well, with production value approaching VND 46 trillion. 8 million tourists visited Lao Cai, a 10% increase. Every year, Lao Cai is one of the cities and provinces in the country with the highest rates of public investment disbursement. Additionally, the value of commodities imported and exported via the Lao Cai border gates has continued to expand at a rate of 68%.

What are Lao Cai's competitive advantages in luring investment, in your opinion?

Situated in the middle of the Northern Midlands and Mountainous Region (between the Northwest and Northeast of Vietnam), Lao Cai Province serves as both the transverse link between the northern border provinces that border China and the longitudinal connecting hub of the Kunming-Lao Cai-Hanoi-Hai Phong economic corridor. As the entry point and front line of Vietnam's northern border, Lao Cai is vital to the country's security, defense, and socioeconomic growth. It offers numerous benefits to develop into an important hub for the politics, business, culture, and international relations of the region.

As a key "bridge" for the economic development of Vietnam and ASEAN nations with the western region of China, especially Yunnan Province (China), Lao Cai Province also seeks to construct a state-of-the-art logistics hub in order to stay up with development trends.

Among these, finishing the highway is Lao Cai's top priority: the planned Yen Bai-Lao Cai segment of the Noi Bai-Lao Cai highway has been completed; the Hanoi-Lao Cai highway's connecting route with Ha Giang has been invested in; and the Bao Ha (Lao Cai)-Lai Chau (CT.13) highway will be shortly finalized.

With a capacity of three million passengers annually, Lao Cai aims to finish and open the Sa Pa airport, which satisfies the 4C airport standard. It also researches the building of multiple border bridges that connect to China and constructs bridges across the Red River in Lao Cai City and the Bat Xat, Bao Thang, and Bao Yen districts.

Simultaneously, Lao Cai will construct a crossing facility at the Kim Thanh Border Gate and the Ban Vuoc International Border Gate to enable the single rail transportation of goods (containers) to China; execute a pilot project for a new cross-border economic cooperation zone model; and construct a smart border gate at the Lao Cai international border gate.

Additionally, the province is working to establish the border gate economic zone as a hub for trade connectivity between Southwest China, ASEAN, and Vietnam.

As a regional hub, Lao Cai province has recognized, like other provinces, the necessity of bolstering relations and investments to construct socio-economic infrastructure in border regions while judiciously allocating industrial and economic facilities.

Additionally, it will prioritize cooperation and connection with neighboring provinces to develop regional connectivity; continue to improve the efficacy of the border gate economic zones; and capitalize on the potential and strengths of the border economy.

Which projects and sectors will Lao Cai prioritize in the near future for investment attraction, sir?

With a focus on attracting high-tech, new technologies, clean energy, environmentally friendly, less labor-intensive, and high-value projects, Lao Cai will selectively cooperate to help restructure the economy. These projects include financial services, logistics, supporting industries, high-tech agriculture, agroforestry and fishery processing industries, tourism, export processing, aquaculture, and mineral processing.

Lao Cai province will continue to aggressively implement support solutions, accompany businesses, and concurrently promote investment to attract foreign direct investment, official development assistance (ODA), and domestic investment in order to maintain the appeal of the investment environment and draw in high-quality investment projects.

Respectfully, thank you!