Economic Recovery and Positive Development

Economic growth of Dak Lak province was 6.3% in 2021 and 8.94% in 2022. This was a good performance as the economy faced numerous difficulties and challenges due to the COVID-19 pandemic and economic and political fluctuations in the world.

Dak Lak has great potential for renewable energy development

Overcoming challenges

The Dak Lak Department of Planning and Investment said that the average annual economic growth was 8.5% in the 2016-2020 period, with the economic structure shifting in a positive direction where the share of non-agriculture decreases. Social security is guaranteed; people's material and spiritual life is significantly improved; and national defense and security is maintained to create a favorable environment for socioeconomic development.

In 2021 and 2022, the province confronted numerous difficulties and challenges due to the COVID-19 outbreak, complicated global economic and political development and rising inflation. However, thanks to the firm leadership and direction of the Party and local authorities, together with the effort of all branches and levels of government and businesses and the support of the people, the province’s economy recovered positively and produced important results. Its economic growth was 6.3% in 2021 and 8.94% in 2022. This was decent growth amid the COVID-19 epidemic.

Especially, Dak Lak always focuses on attracting and calling for investment. With the view that the government accompanies businesses and investors, the Provincial People's Committee facilitates investors to carry out their projects in the locality. Dak Lak has attracted 347 investment projects with a combined registered investment capital of about VND80 trillion since 2016. Many big investors have invested in renewable energy (wind power and solar power), urban development, eco-tourism, resorts, and agriculture.

Operational investment projects are working well, employing a lot of local workers, paying taxes to the State Budget and making an important contribution to local socioeconomic development. Typically, Xuan Thien Group invested VND15,402 billion in five solar power projects with a total capacity of 600 MW in Ea Sup district. Trung Nam Group invested VND16,500 billion in Ea Nam wind power plant project.

In addition, in 2022, the Provincial People’s Committee held a ceremony to announce the first durian export under a protocol signed by the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China. This event was not only the pride of Dak Lak durian growers, but also the common joy of people in the Southwest, Southeast and Central Highlands. This is also a foundation for drawing investors to engage in deep agricultural processing technology in the province.

New motivations

Located in the heart of the Central Highlands, Dak Lak province plays an important strategic role in terms of economy, defense and security for the Central Highlands and the whole country. The province has the 4th largest natural area in the country and the largest agricultural land area in the country. It has a population of 1.9 million people, accounting for 34% of the Central Highlands population and ranking 10th in the nation. Buon Ma Thuot City is a first-grade provincially governed city, oriented by the Politburo to be developed into an urban center of the Central Highlands, with national highways 14, 26, 27 and 29 linking Central Highlands provinces with Central Coast and Southeastern provinces. Its air routes connect the province with major economic centers of the country.

Khanh Hoa - Buon Ma Thuot Expressway, which is about to be invested, will be a strategic route that plays an important role in unlocking ecotourism potential in the Central Highlands and connects the Central Highlands with the South Central Coast. This is also a route for transporting agricultural products of the Central Highlands for export to countries around the world through Van Phong Seaport (Khanh Hoa province).

According to the Dak Lak Department of Planning and Investment, in the coming time, when investing in Dak Lak, investors will be offered many incentives. Investors will be entitled to investment incentives in Buon Ma Thuot City and special investment incentives in all other districts and towns. In addition to preferential policies stipulated by the Central Government, investors will enjoy investment incentives offered by the province. Specifically, when investing in socialized fields, they will be entitled to a 25-year exemption of land rents and a 70% reduction for the remaining time for projects in urban wards in Buon Ma Thuot City, and a 25-year exemption of land rents and a 85% reduction for the remaining time for land in communes of Buon Ma Thuot City and 100% exemption in other places.

The Provincial People's Committee has also been making ongoing efforts to improve the business investment environment, developing and implementing the Provincial Competitiveness Index (PCI) Improvement Plan. Dak Lak defines administrative reform, including administrative procedure reform, as one of the important solutions to create a favorable environment to attract investment resources for development to meet requirements of industrialization, modernization and international economic integration. The province regularly directs all levels and branches to quickly settle administrative procedures in order to facilitate investors to implement their projects. Dak Lak pays special attention to removing difficulties and obstacles for businesses and investors and adopts various forms of business support like Business Dialogue, Business Thursday, Business Coffee Talks and televised Business-Government Q&As.

Investment promotion has been gradually innovated so as to clearly define key industries, fields, locations, strategic investors and large-scale projects. In particular, the province is interested in encouraging existing investors to invite others to the province; promptly removing difficulties and obstacles against active projects to make them work effectively. By doing so, Dak Lak province will continue to strengthen investor confidence in the local business investment environment and create a ripple effect and positive impact on new investors.

Source: Vietnam Business Forum