The Department of Planning and Investment of Dak Lak province stated the reason why Dak Lak has not attracted FDI

DNHN - The Department of Planning and Investment of Dak Lak province requested that the Central Government support and facilitate the province's participation in seminars and working groups to promote international investment. Consequently, exchange

In 2023, Dak Lak province will concentrate its efforts on soliciting investment capital for two projects on the Prime Minister-approved National List of projects soliciting foreign investment for the period 2021-2025, including an Agricultural product processing factory, with total investment capital of 7 million USD; Mechanical factory for agricultural production, with total investment capital of 22 million USD; and other related projects.

According to the Department of Planning and Investment, it remains challenging to attract foreign investment.

Compared to the province's potential, the current number of investors coming to learn about the investment climate and make investments is low. Particularly, there are few investors with strong financial and technological capabilities, and the country has not yet attracted a large number of potential foreign investors.

The province’s investment projects from developed nations and major corporations are still modest. A large proportion of foreign investors are comprised of small and medium-sized businesses.

In addition, despite the region's large natural land area, the clean land fund available for investment is extremely limited. Some projects have been allocated or leased land, but construction investment is still proceeding slowly.

The reason for this is due to difficulties in the phase of site clearance compensation, particularly for projects involving large tracts of agricultural and forest land.

On the other hand, due to the characteristics of the mountainous province, with its vast area and complex topography, the province is prone to natural disasters. Many inter-community, inter-district, and inter-provincial roads are degraded and damaged as a result of insufficient and asynchronous infrastructure investment.

This has hampered the transportation and consumption of goods, weakening the link between the raw material area and factories, production facilities, and processing facilities.

Additionally, limited infrastructure increases costs and decreases the competitiveness of goods. As a result, it affects the attraction of investment, particularly in remote and isolated regions and regions with extremely challenging economic conditions.

Moreover, according to the Department of Planning and Investment, the implementation of site clearance, bidding, and auction procedures is still sluggish, so projects permitted to research and propose projects encounter difficulties in project management.

Faced with the aforementioned reality, the province of Dak Lak's Department of Planning and Investment requested that the Central Government support and create favorable conditions for the province to participate in seminars and working groups to mobilize investment promotion abroad. Consequently, sharing and gaining experiences with provinces and cities across the nation, as well as with organizations and investors.

A leader of the Department of Planning and Investment stated that to improve the situation and increase the benefits of attracting FDI, the province prioritizes land clearance as one of its most important tasks. To attract investment, equalize investment, invest in technical infrastructure, and create numerous "clean" land funds. In addition, the implementation of an open mechanism and preferential policies for attracting investment is a priority.

To date, Dak Lak has issued investment registration certificates for 22 projects (outside industrial parks) with a total registered capital of over 595 million USD by investors from eight countries: Singapore, Thailand, Korea, Japan, India, the United Kingdom, the United States, and the Netherlands. 8 projects in the fields of service and production, with a total registered capital of more than 43 million USD; 6 projects in the field of wind power with investment capital of more than 430 million USD; 6 projects in the fields of agriculture and manufacturing, with a total registered capital of nearly 117 million USD; 1 project in the field of the environment with investment capital of 4.4 million USD; and 1 project in the field of education with investment capital of more than 1 million USD.

Lam Nghi