Lam Dong strives to overcome difficulties to attract investment (Part 2)

Monthly meetings to review the socio-economic situation of Lam Dong province analyze the reasons behind the achievements and the remaining challenges in attracting investment... In early February 2025, the Provincial People's Committee organized a conference on preparing to attract investment projects funded by non-budgetary sources. Despite commendable efforts, the investment attraction landscape of Lam Dong province still reveals significant challenges...

Lam Dong strives to overcome difficulties to attract investment.

Lesson 2: Challenges and Barriers in Attracting Investment

Dalat Hasfarm, a company with 100% foreign investment, has brought cutting-flower and potted flower cultivation technology to Da Lat, Lam Dong province. Photo: Hoang Sa

Investment and development are among the key objectives in Lam Dong province's socio -economic development. However, a reality in many localities is that when proposing investment projects to the Provincial People's Committee, they often fail to provide the necessary conditions to make these projects attractive to investors, and haven't prepared the content for attracting investment. Furthermore, many districts and cities have raised concerns about the lack of available land, the absence of established procedures for attracting investment and hiring consultants, and the lack of procedures for securing funding. Opinions from local leaders and relevant departments also indicate that many projects have failed to attract investment, leading to a failure to mobilize and unlock capital from businesses.

Several reasons have been cited, such as: Lam Dong is a mountainous province, located far from major economic centers of the country, as well as seaports and vital railway lines, leading to higher freight transportation costs and reducing logistics competitiveness for businesses... Technical infrastructure (roads, electricity, water, telecommunications in some areas of the province...) is not yet synchronized. In particular, transportation infrastructure – although significantly improved – still lacks connecting routes to key economic regions and areas with development potential, hindering movement, transportation, and trade, thus affecting production and business activities and impacting investment decisions of enterprises...

Dalat Hasfarm, a company with 100% foreign investment, has brought cutting flower and potted flower cultivation technology to develop in Da Lat, Lam Dong.

This doesn't even take into account the volatile and challenging domestic and global economic landscape, which affects the psychology and investment capacity of businesses. Policy instability, inflation, interest rates, and other macroeconomic factors may make investors more cautious in making long-term investment decisions... In addition, some investors are not truly serious about complying with legal regulations, nor are they actively implementing projects as committed, affecting the progress and efficiency of land resource utilization…

In particular, a very clear cause in Lam Dong is the lack of coordinated and overlapping planning, specifically between land use planning and construction planning, which has created major barriers to investment activities, making it difficult to determine suitable project locations, scales, and types, and slowing down the process of attracting capital. In addition, land prices and compensation rates for land clearance in some areas of the province are considered high, increasing initial investment costs for projects… reducing the attractiveness of the investment environment and forcing investors to consider more carefully before making a decision.

Furthermore, information on some projects in the province's investment call list is incomplete and unclear, making it difficult for investors to access information, assess investment opportunities, and make decisions. Administrative reform has not met requirements; although the province has made many efforts in administrative reform and improving the investment and business environment, administrative procedures in some areas are still cumbersome and complex, and delays in processing applications, especially in the land sector, still occur... leading to conditions for attracting investment that do not match the potential and advantages of the locality.

According to Vice Chairman of the Provincial People's Committee Vo Ngoc Hiep, various sectors and localities are still struggling to establish conditions for attracting investment (from planning to proposing investment policies...). The Vice Chairman noted that localities should base their investment attraction efforts on existing plans. Each project is related to multiple types of plans, such as: national plans, provincial plans, general plans, regional plans, zoning plans, land use plans, construction plans, etc. First and foremost, it is necessary to consider whether the project is consistent with these plans; if so, it should be added to the list of projects seeking investment; and then submitted to the Provincial People's Council for inclusion in the list of projects involving land use and land acquisition for socio-economic development…

To truly create a strong transformation in attracting investment capital and promoting sustainable socio-economic development, Lam Dong province needs greater determination and the synchronized and effective implementation of the proposed solutions. Thoroughly addressing bottlenecks in planning, administrative procedures, land clearance, and infrastructure will be key to unlocking the flow of investment capital, turning potential into reality, and making Lam Dong an attractive and reliable destination for domestic and foreign investors. The synchronized involvement of the entire political system, the joint efforts of the business community and the people are crucial factors for Lam Dong to achieve greater success on its socio-economic development journey…

(TO BE CONTINUED)

Source: https://baolamdong.vn/kinh-te/202504/lam-dong-no-luc-vuot-kho-thu-hut-dau-tu-bai-2-4487626/