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Expectations are high for Lam Dong to break through the 'iceberg' in attracting investment.

Việt NamViệt Nam13/09/2024


Recently, Prime Minister Pham Minh Chinh signed Decision No. 956/QD-TTg approving the election results for the position of Chairman of the People's Committee of Lam Dong province for the 2021-2026 term for Mr. Tran Hong Thai, Deputy Secretary of the Lam Dong Provincial Party Committee.

At the same time, at the 17th Session of the 10th Term of the Lam Dong Provincial People's Council, held on August 23, 2024, Ms. Pham Thi Phuc, Member of the Standing Committee and Head of the Provincial Party Committee's Mass Mobilization Department, was elected as the Chairperson of the Lam Dong Provincial People's Council for the 2021-2026 term.

Kỳ vọng Lâm Đồng bứt phá để phá vỡ ‘tảng băng’ trong thu hút đầu tư
Prime Minister Pham Minh Chinh speaks at a working session with Lam Dong province on August 25, 2024. Photo: Le Son

Thus, the leadership structure of Lam Dong province has been strengthened. This is the prerequisite and basis for the province's political system to enhance leadership and guidance in implementing key tasks, resolving difficulties and challenges, and developing Lam Dong to match its potential and advantages. In particular, it aims to regain its position as a leading province in the Central Highlands region in terms of GRDP growth.

Challenges surrounding Lam Dong

Located in the Southern key economic region, a dynamic area with high economic growth and great potential, it ranks 7th in the country in terms of area, has diverse topography, fertile land, a mild climate, and especially a strong advantage in developing high-tech agriculture.

In addition, there is potential for the development of tourism, processing industries, energy, and mineral extraction and processing. The transportation system is convenient and fairly well-developed; there is a relatively abundant workforce with a well-developed education and training system…

Kỳ vọng Lâm Đồng bứt phá để phá vỡ ‘tảng băng’ trong thu hút đầu tư
The Cam Ly hydroelectric project in Da Lat City is facing difficulties in the transfer process. Photo: Le Son

However, looking at some of the local socio-economic indicators now, many people are surprised and may perceive a less than rosy picture.

Specifically, in the first six months of 2024, Lam Dong only attracted one investment project, and the province's Gross Regional Domestic Product (GRDP) hit rock bottom in the Central Highlands region (whereas in previous years, Lam Dong consistently ranked first among the Central Highlands provinces in terms of GRDP), placing it 58th out of 63 provinces and cities nationwide.

According to the provincial People's Committee leaders, businesses are facing many difficulties; the number of newly established businesses has decreased both in quantity and registered capital. Specifically, there were 582 newly established businesses with a registered capital of 2,676 billion VND, a decrease of 14% in the number of businesses and 30.7% in registered capital compared to the same period last year. Meanwhile, the number of businesses registering to temporarily cease operations has increased significantly (578 businesses), up 26.5% compared to the same period last year.

It should be reiterated that Lam Dong's administrative reform index in 2023 ranked 46th nationwide, a decrease of 31 places; its provincial competitiveness index (PCI) ranked 56th out of 63 provinces and cities, a decrease of 39 places compared to 2022.

According to reports, the state budget revenue collection situation in the province has shown positive signs. Total state budget revenue in the first eight months of 2024 reached 68% of the central government's projected target and 63% of the local government's projected target, but it is predicted that the remaining months of the year will face many difficulties.

Discussing Lam Dong's competitiveness index over the past period, Comrade Nguyen Thai Hoc, Acting Secretary of the Lam Dong Provincial Party Committee, frankly admitted: "Many people say it's a free fall, not just a decline. From position 17 down to 56 is a problem that makes us wonder why we are in this situation."

We need to eliminate factors that hinder the investment environment.

Why is it that a locality blessed with numerous favorable conditions to attract domestic and international investors to invest in production and business is still hesitant to establish a presence there? Meanwhile, Lam Dong, like any other locality, must comply with the same regulations of the legal system. Perhaps one of the reasons lies in the operation of the law enforcement system, the state management agencies, and the mechanisms and policies that support and encourage the creation of a healthy, transparent, and sustainable investment environment.

Kỳ vọng Lâm Đồng bứt phá để phá vỡ ‘tảng băng’ trong thu hút đầu tư
Deputy Minister of Industry and Trade Nguyen Hoang Long speaks at a working session with Lam Dong province on August 25, 2024. Photo: Le Son

At the meeting and dialogue with local businesses held on June 22, 2024, Mr. Nguyen Thai Hoc, Acting Secretary of the Lam Dong Provincial Party Committee, acknowledged that in the past, the coordination between officials and government levels with businesses has sometimes been inadequate, lacking a spirit of sharing and partnership, goodwill, and concern for businesses in considering and handling investment procedures and resolving difficulties and obstacles.

In the field of land management, a report from the Department of Natural Resources and Environment of Lam Dong province shows that in 2023, Lam Dong's land access index decreased by 1.41 points, to 6.42 points. 48% of businesses reported that officials receiving applications and processing land administrative procedures did not provide detailed and complete guidance; 38% reported that the procedure for determining the value of land use rights took a very long time; and 71% of businesses had to postpone/cancel their business plans due to difficulties in carrying out land administrative procedures.

Kỳ vọng Lâm Đồng bứt phá để phá vỡ ‘tảng băng’ trong thu hút đầu tư
Millions of cubic meters of sand are awaiting auction. Photo: Le Son

Regarding the exploitation and utilization of mineral resources, a paradoxical situation is occurring: millions of cubic meters of sand dredged by businesses for hydroelectric and irrigation reservoirs, intended as ordinary building materials, cannot be brought to market because they are awaiting auction. This leads to a scarcity of supply and a significant increase in the price of construction sand compared to neighboring provinces. This is the reality in Lam Dong, and it remains unclear when these obstacles and shortcomings in the management, exploitation, and use of mineral resources in Lam Dong will be resolved.

Furthermore, a hydropower company complained that it had never experienced such difficulties, hardships, and complications in the process of requesting the transfer of a project or a change of investor for a hydropower project in Da Lat City. The company has submitted four applications and appeals to the province, but to date, the matter remains unresolved.

To address existing shortcomings and inadequacies, more than ever, Lam Dong province needs to create a friendly, professional, and open environment for the government, people, and businesses to work together to successfully achieve the set goals. In particular, it is crucial to implement the Lam Dong Provincial Planning for the period 2021-2030 and the vision to 2050, creating a solid foundation for comprehensive and sustainable development. Businesses in the province also need to be treated fairly and given maximum support to develop production and business, thereby generating revenue for the locality.

Kỳ vọng Lâm Đồng bứt phá để phá vỡ ‘tảng băng’ trong thu hút đầu tư
The tourism industry in Lam Dong province continues to grow. Photo: Le Son

Especially in the context of Lam Dong province actively preparing to invest in many important projects, such as the Tan Phu – Bao Loc, Bao Loc – Lien Khuong, and Nha Trang – Da Lat expressways. These expressway projects connecting within and between regions play a crucial role in exploiting the potential of Lam Dong, the Central Highlands provinces, and other areas.

Acting Provincial Party Secretary Nguyen Thai Hoc affirmed: In the coming period, Lam Dong province in particular and other localities in general cannot do without businesses and investors. Lam Dong province also always strives to have an investment environment that is open, transparent, efficient, and compliant with the law…

The Acting Provincial Party Secretary outlined three decisions that the Lam Dong provincial government is determined to unify and commit to supporting businesses from awareness to action: Adhering to the law, respecting what is right, and respecting the law; avoiding evasion, shirking responsibility, and reluctance to act within government officials; implementing Directive 34-CT/TU of the Provincial Party Standing Committee on three things to do and four things to avoid… At the same time, he requested that all levels of government not keep businesses waiting too long, not respond coldly that the project has not been approved, and that agencies must coordinate with each other. The government must work with relevant parties and consider the proposals of businesses…

The government pays special attention to Lam Dong.

In late August and early September 2024, it was no coincidence that Prime Minister Pham Minh Chinh and Deputy Prime Minister Tran Hong Ha held consecutive working sessions with Lam Dong province to direct and find solutions to address the existing problems, shortcomings, and obstacles the locality was facing.

In addition, the Prime Minister acknowledged the efforts made by the Party Committee, government, and people of Lam Dong province in the past period, contributing to the development of the country.

Conversely, the Prime Minister also emphasized that Lam Dong province "must face the truth" to identify the difficulties, challenges, and limitations that need to be addressed, such as: Economic development not commensurate with its potential; slow economic transformation; limited mechanisms and policies; somewhat diminished competitiveness; failure to attract FDI to meet targets; slow disbursement of investment capital; economic and social infrastructure, especially transportation infrastructure, not meeting development needs and lacking connectivity. There are still shortcomings and inadequacies in the management and use of resources, the environment, land, minerals, and forest protection; natural disasters are becoming increasingly complex; and the lives of a segment of the population remain difficult.

The Prime Minister affirmed that Lam Dong still has much room, potential, and opportunities for breakthrough development in the coming time. Therefore, the Prime Minister requested that, based on their functions, tasks, and powers, they should proactively and actively support Lam Dong in the spirit of sharing and jointly resolving difficulties and obstacles, "not saying no, not saying it's difficult, not saying yes without doing it."

Source: https://congthuong.vn/ky-vong-lam-dong-but-pha-de-pha-vo-tang-bang-trong-thu-hut-dau-tu-345728.html


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