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Northwest region calls for 10 billion USD investment
The northwestern region needs a total investment capital of at least 10 billion USD by 2010, so as to achieve the target of social and economic development set by the government, according to local authorities.
Following the scheme, the region including Lao Cai, Yen Bai, Phu Tho, Dien Bien, Lai Chau and Ha Giang provinces aims to ensure an economic growth rate of 11 percent each year.
Despite the advantages in land space, natural resources and hydro-electric power potential, the provinces have failed to attract foreign investors due to insufficient infrastructure and a shortage of skilled labour, said Lao Cai Department of Planning and Investment director Doan Van Huong.
During the period between 1998 and 2007, the region attracted only 92 foreign-invested projects worth 675 million USD. In the first nine months of this year, only Lao Cai and Yen Bai could attract foreign investment with Lao Cai licensing four projects valued at 73.4 million USD and Yen Bai approving a 3.2 million USD project.
Slow land clearance, cumbersome administrative procedures and higher investment costs than that of other locations were identified as the main challenges facing the northwestern provinces in attracting foreign direct investment.
Among the six provinces in the region, Lao Cai has proved the most attractive to foreign investors. By September this year, foreign investors pumped 318.6 million USD into 33 projects. However, only 23 million USD or 7.2 percent of the sum has been disbursed.
Phu Tho People’s Committee Chairman Nguyen Doan Khanh spoke of the need to upgrade regional road systems and roads connecting the provinces with large economic hubs, so as to make life easier for investors.
Streamlining administrative procedures was also necessary to create a favourable investment climate, as well as to improve awareness of officials in charge of investment promotion, Khanh added.
Under a decision by the Prime Minister, the northwestern provinces will receive financial support from the Government to upgrade infrastructure facilities to encourage development and attract investment capital.
Last year, the average annual GDP growth in the region stood at 12.4 percent. It hopes to increase this by 1.5 percentage points this year.
VNA
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