Minister Nguyen Hong Dien: Developing Lao Cai into a growth pole of the region and the whole country
Tạp chí Công thương•30/08/2024
According to the Minister of Industry and Trade , Lao Cai province has many advantages and possesses the full potential to develop into a growth pole for the region and the whole country. Concluding the working session with Lao Cai province on the morning of August 30th, on behalf of the delegation, Minister of Industry and Trade Nguyen Hong Dien highly appreciated the serious and proactive spirit of the Lao Cai Provincial People's Committee in preparing the working session with the delegation. Minister Nguyen Hong Dien assessed that Lao Cai is a border province considered the " frontier of the Fatherland ," with a land border length of over 182 km adjacent to Yunnan province (China); holding a strategically important position in the country's economy, politics , military, and foreign relations. The province adheres to five principles: "preserving forests, preserving water, preserving the environment, preserving the people, and preserving the border." Minister of Industry and Trade Nguyen Hong Dien concluded the working session. Located in the central part of the northern mountainous region, within the area of two major economic corridors (Lao Cai - Hanoi - Hai Phong - Quang Ninh and Lao Cai - Hanoi - Lang Son) , Lao Cai is identified as a gateway connecting Vietnam and ASEAN countries with China. This demonstrates its crucial geoeconomic, geopolitical, and geo-defense importance. Furthermore, Lao Cai is a place of "headwater rivers and majestic mountains," boasting famous and established tourist destinations (such as Sa Pa, Phan Xi Pang peak, and Bac Ha); it is also poised to have three major international border crossings in the future (currently one in Kim Thanh, with two more under planning); its transportation infrastructure is developing multimodal connections via road, rail, water, and air (with air travel planned in the near future) ; and it is rich in mineral resources, with many valuable, high-quality minerals in large reserves (apatite, iron, copper, etc.). "Along with its diverse and unique culture of 25 ethnic groups... ' Lao Cai has favorable conditions and possesses all the potential and advantages to become a growth pole of the region and the whole country, especially in the development of clean energy, mining and mineral processing industries, border trade, goods trading, logistics services; ecotourism, resort tourism, cultural tourism… ' - Minister Nguyen Hong Dien emphasized. According to the Minister, in recent years, Lao Cai province has effectively exploited its potential and advantages, with a forward-looking vision and with great efforts and determination, so the Party committee, government and people of all ethnic groups in the locality have led, directed and strived to achieve very outstanding results. The proportion of industry and trade and services accounts for nearly 80% of the province's GRDP. In the first seven months of this year, key indicators in the industrial and trade sectors continued to achieve high results, growing more than the same period last year and exceeding the national average. Highlights include: (i) Industrial production index increasedby 10.7%(national average increase of 8.47%) , ranking 8th in the region and 24th nationwide; (ii) Total retail sales of goods and services increased by 14.2%(more than double the national average) ; (iii) Export turnover (according to data from the General Statistics Office)increased dramatically, more than doubling(national average increase of 15.7%) ; Import turnover increased by 50% (national average increase of 18.5%) . "Thus, the import volume is not only for Lao Cai but also for the whole country. This proves that the raw materials for production and export to the world through this border gate are increasing, which is a very encouraging sign," the Minister of Industry and Trade affirmed. However, the Minister also frankly pointed out that, in addition to the achievements, the province's industry and trade sector still has limitations and weaknesses that need to be addressed. Industrial production, although experiencing relatively high growth, is not yet sustainable; especially, technology is slow to innovate; The internal structure of the industrial sector is still unbalanced (the proportion of processing industries is low, while the proportion of mining industries is high; mining is high but the added value is small, and environmental issues are also a challenge) . Border trade and import-export activities are still heavily dependent on the Chinese market and have not expanded to many other markets; the utilization of market opening opportunities from free trade agreements, especially the new generation FTAs of which Vietnam is a member, is still limited for businesses. The domestic market has low purchasing power (partly due to the small population size, of which about 66% are ethnic minorities). If there were a more effective approach, this would not only meet the needs of Lao Cai province but also become a hub and a market for the region. The distribution system and commercial infrastructure are not yet developed synchronously and their scale is still limited. In recent times, the province has been focusing on overcoming the limitations and violations accumulated from previous years, as pointed out by relevant agencies. This has somewhat affected the morale of officials and civil servants. The Minister stated that the Ministry of Industry and Trade highly appreciates the vision and planning of the locality in its development orientation for the coming period, and basically agrees with the tasks and solutions outlined by the locality. The motto "1 axis, 2 poles, 3 regions, 4 pillars, 5 solutions" is very valuable for reference. From the perspective of the Industry and Trade sector, the Minister requested the Province to pay attention to and focus on directing the following contents: First, continue to do even better in disseminating and effectively implementing the Party and State's guidelines and policies on socio-economic development in 2024 and the following years, especially some new policies that have come into effect, such as: (i) the Land Law, the Housing Law, the Real Estate Business Law and related Decrees on land prices and compensation. (i) Support and resettlement when the State reclaims land; (ii) New regulations on a 2% reduction in VAT, policies on exemption, reduction, and extension of deadlines for paying taxes, fees, charges, and land use fees; (iii) Especially the new breakthrough policies issued in the energy sector such as the direct electricity trading mechanism, the mechanism for developing self-sufficient rooftop solar power... have been opening up new opportunities for localities, including Lao Cai, with the potential for developing clean energy, small and medium-sized hydropower.Secondly, the Lao Cai Provincial Planning was approved quite early compared to other localities (March 2023). However, the Regional Planning was only approved in May 2024, and many national sectoral plans were approved at the same time or after the Provincial Planning was approved; therefore, many sectoral and regional plans will certainly not be updated in the Provincial Planning. Therefore, the province needs to urgently and proactively review the Provincial Planning to adjust and update it. Regional planning, sectoral planning, and national sectoral planning must be synchronized with the province's own planning; at the same time, the land use planning and plans, especially the land use plan for the period, must also be synchronized. Thirdly, urgently implement national sectoral plans in the energy and mineral sectors in the province. Accordingly, by 2030, the province is planned to have: 28 MW of rooftop solar power; 30 MW of biomass power; 1 MW of waste-to-energy power; 25 small hydropower projects with a total capacity of 223.5 MW; 1 Duc Giang cogeneration thermal power plant project with a capacity of 100 MW; 11 power grid projects; 26 mineral mining sites; and 3 rare earth processing projects. Thus, Lao Cai has many conditions to implement these projects; if implemented, they will not only enhance the industrial, commercial, and service production capacity in the province but also awaken the local potential and promote the development of other economic sectors. In particular, for the mineral industry, attention should be paid to directing not only exploitation but also focusing on deep processing; support and favorable conditions must be provided to businesses following a phased approach to achieve two goals: increasing the added value of the mineral mining and deep processing industry, and creating clean land to attract investment. Fourth,accelerate the restructuring of the industrial sector towards modern, large-scale, green, circular, and sustainable development. Focus on developing the mineralmining and deep processing industry, building Lao Cai into a major metallurgical, mechanical, and chemical center of the country; prioritizing attracting investment in mineral mining and deep processing to meet the input material needs for manufacturing industries, materials, chemicals, fertilizers, mechanical engineering, and electronics, while minimizing environmental impact and ensuring sustainable development. Focus on developing the deep processing industry for some of the province's strong agricultural products (such as...). (Tea, cinnamon, medicinal herbs, etc.) to enhance export value and meet the requirements of demanding markets (such as the US and Europe). Focus on developing clean energy sources and supporting industries linked to the province's existing advantages. In particular,the province needs to accelerate the restructuring of its industrial sector , especially the clean energy, processing, and manufacturing sectors, towards promoting high-tech, high-value-added, clean technology, and export-oriented industries and products. Concentrate on reviewing and improving local policies and mechanisms to ensure their consistency and feasibility; promote public investment to lead and mobilize social resources for the development of technical infrastructure, especially transportation infrastructure and infrastructure for industrial zones and clusters, to boost investment attraction into the province, especially industrial production, trade, and service projects. Proactively implement the 2024 Land Law to develop a sufficiently large and clean land fund, creating favorable conditions for attracting investors. They possess the financial capacity, technology, and management experience to implement large-scale projects, creating a "boost" and a ripple effect on the network of satellite businesses not only in Lao Cai but also in other localities in the region, and even nationwide. As a locality with a relatively high forest cover rate (nearly 60%), Lao Cai also needs to focus on exploiting this strength to form and develop a carbon credit trading market, helping businesses in the province and the region obtain green certifications for production and export. "However, Lao Cai is one of the localities with the largest forest area in the country, so in the orientation of wood and wood product production and export, the province needs to pay attention to Europe's anti-deforestation regulations, which will be applied from January 2025; accordingly, Europe will ban the import of products produced on land originating from deforestation and forest degradation in 7 groups of agricultural products (livestock, cocoa, coffee, palm oil, rubber, soybeans, wood and wood products), therefore, this will have a significant impact on the development of the province's forestry processing, pharmaceutical, and wood processing industries," the Minister noted. Supporting businesses to effectively utilize opportunities from FTAs.Fifth, regarding trade development, the province needs to focus on guiding and supporting businesses in accessing and implementing infrastructure plans for both traditional and existing trade, especially the "unparalleled potential for local logistics exploitation in Lao Cai." The province should prioritize supporting businesses in effectively utilizing opportunities from FTAs to which Vietnam is a member, especially new-generation FTAs, to develop production and expand export markets. Simultaneously, it should proactively develop trade promotion plans tailored to the needs and capabilities of businesses; accelerate digital transformation and the application of information technology in trade promotion to support businesses in expanding markets and developing new export products and markets. Lao Cai has strengths in developing resort and cultural tourism. Therefore, the province needs to promote trade development linked to tourism, considering this the most effective form of on-site export. If Lao Cai develops its night-time economy, it will not only sell local products but also become a local tourist destination, allowing goods produced nationwide to be gathered in Lao Cai. This is the best opportunity for Lao Cai to develop, not only boosting local production but also promoting trade throughout the region and the country. Emphasis should be placed on investing in logistics infrastructure, warehouses, and storage facilities, especially in the Lao Cai Border Economic Zone, to facilitate the development of goods circulation and effectively exploit the border gate economy. This will contribute to building Lao Cai into a center connecting trade between Vietnam and ASEAN countries with Southwest China and further afield to Eastern Europe. Strengthening and developing goods distribution channels in a civilized and modern direction is crucial; harmoniously combining the development of traditional trade forms with the development of e-commerce. Furthermore, it is essential to promote the image and brand of local industries and distinctive products. Greater attention should be paid to investing in the development of commercial infrastructure in rural areas, aiming to narrow the trade development gap between urban and rural areas. At the same time, the province is urged to promptly implement the consumer stimulus program from now until the end of the year, as per the Prime Minister 's directive. Regarding the 13 recommendations from Lao Cai province mentioned in the report and the two additional recommendations made during the working session concerning energy, minerals, domestic market development, import and export, logistics, and amendments to some mechanisms and policies under the management of the Ministry of Industry and Trade, representatives from the participating units of the working group have discussed and basically addressed the province's recommendations. The Minister stated that after this working session, the Ministry will officially document the conclusions, including specific answers to the province's recommendations and proposals, to serve as a basis for the locality's implementation. In addition, there are several other proposals related to the functions of other ministries and agencies, and the authority of the Government and the Prime Minister. The Ministry of Industry and Trade will compile these and forward them to the relevant ministries and agencies for consideration and resolution within their respective jurisdictions. "The Ministry of Industry and Trade, with its functions, duties, and powers, fully supports and assists the development of Lao Cai," Minister Nguyen Hong Dien reiterated.
Earlier, as part of his working visit, Minister Nguyen Hong Dien and the delegation from the Ministry of Industry and Trade surveyed the Kim Thanh International Road Border Gate No. II in Lao Cai City, Lao Cai Province.This meeting with Lao Cai Province was part of a series of activities by Minister Nguyen Hong Dien to directly work with localities in August 2024. Prior to this, from August 7-9, the Minister visited three provinces: Kon Tum, Quang Ngai, and Binh Dinh; and on August 15, he visited two provinces, Thai Nguyen and Bac Kan, to inspect several economic establishments and production enterprises in the area.
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