According to the overall development planning, Lao Cai was supported to have 13 industrial parks by 2025 but so far, only three have relatively complete infrastructure and full occupancy. Two others are carrying out major infrastructure and installation work, including electricity and water systems. The remaining eight have not found investors for their infrastructure although they were established almost 10 years ago.
The Lao Cai Department of Industry and Trade said the province has great potential for industrial and small handicrafts and it wishes to develop the local IPs towards a sustainable development. However, establishing IPs requires large investments while the province is facing difficulties in drawing investment from non-state economic sectors.
The cost of full IP infrastructure is about VND100 billion, which means a lengthy payback period, while investor right in attracting secondary investment projects remains limited. Moreover, poor infrastructure outside the IPs is another factor making it hard to attract investors.
Many IPs were established before government regulations went into effect, as a result of which land in these IPs was leased separately for different projects, making it harder to call for investments in technical infrastructure for the overall IP plan. In order to attract investors in technical infrastructure, the Lao Cai Provincial People’s Committee has planned support policies and mechanisms relating to land clearance and construction of technical infrastructure inside the IPs. It also uses national industrial promotion capital to support localities in mapping out detailed planning of IPs and essential infrastructure.
In order to develop IPs in compliance with the overall plan, representatives of Lao Cai Department of Industry and Trade proposed that State agencies review, amend and supplement legal documents on management and development of IPs as well as ensuring the feasibility of production and business projects inside these IPs and clarifying the responsibilities of ministries and sectors.
The department also suggested that the Ministry of Industry and Trade (MoIT) prioritize provinces with poor socioeconomic development conditions, including Lao Cai, organize intensive training programs on industrial promotion; and invest in IP infrastructure under more favorable conditions. Via information channels, the department also wants MoIT to introduce investor to IP infrastructure projects in Lao Cai. The province commits to creating the most favorable conditions and incentives for these investors.
The Lao Cai Department of Industry and Trade is drafting policies to develop the local IPs which are expected to attract more investors according to their development plan.
