Deputy Prime Minister Truong Vinh Trong has offered stimuli for investors interested in the northern midland and mountainous region, which he said is drawing the Government’s special attention for its strategic position.
Deputy PM Trong, who is also Head of the Northwestern Region Steering Board, was addressing a 500-strong audience, including representatives from international organizations and investors at a forum in Yen Bai province on December 10 to promote investment in the region.
“The government is in pursuit of a policy to speed up socio-economic development in the northern midland and mountainous region at a faster tempo than the national average,” said the Deputy PM.
He pledged that the Vietnamese Government will work with local administrations in boosting administrative reforms and flexibly apply policies to create friendly investment climate and favorable conditions for investors to the region.
He called on local administrations to focus investment on upgrading infrastructure and expanding regional traffic systems to build new traffic links from economic and cultural hubs to the highlands.
He assigned the Ministry of Agriculture and Rural Development with a task of supporting provinces to identify potential intensive farming areas and develop the processing industry through effective marketing.
Mr. Trong asked international organizations and domestic and foreign investors to continue with market surveys to find feasible investment destinations in the region.
Deputy Minister of Planning and Investment Dang Huy Dong conceded that the northwestern region is the nation’s most disadvantaged region with backward infrastructure and a remote geographical position, making it hard to draw foreign investment.
Up to October this year, the number of investments in the region’s 12 provinces reached 253, with a combined investment of USD1.53 billion, accounting for less than 0.8 percent of the national Foreign Direct Investment.
Foreign investment focuses on processing, mining, agriculture, forestry, fisheries and services.
Lao Cai province leads the region in term of FDI attraction with 54 foreign investment projects capitalized at almost USD504 million, accounting for 21.3 percent of the region’s total FDI projects and 32.8 percent of the registered capital.
China leads 25 foreign investors in the region by investing in 100 projects capitalized at almost USD597 million .
The region has great potential in agricultural production and farm produce processing, mineral exploitation and processing, construction materials, hydro-power and renewable energy, and tourism.
Domestic and foreign investors at the forum expressed interest in the region, saying it shows great potential, especially in its rich land resources that are ideal for agriculture, forestry and mining.
Some investors, however, expressed concern over the lack of information on the market as well as support and incentives for investment in the region.
Despite the concern, the forum saw the granting of investment licenses for 21 projects capitalized at almost VND12.23 trillion (roughly USD623 million) in the region.
Lai Chau and Phu Tho provinces signed agreements of investment for three projects with a combined value of over VND2 trillion.
