Lao Cai: Economic growth due to attracting FDI investmentAfter 30 years of re-establishing the province, foreign direct investment (FDI) projects in Lao Cai have generated many positive results, contributing to economic restructuring, promoting industrial growth, and the process of economic integration local economic imports.
Foreign Direct Investment (abbreviated as FDI) is a form of long-term investment by an individual or company from one country into another by establishing production and business bases. That foreign individual or company will take over the management of this production and business establishment.
FDI activities in Lao Cai province were started in 1996, but in fact, the first FDI project did not come into operation until the end of 1999.
Victoria Sapa Hotel is one of the first FDI projects in Lao Cai.
With the advantage of a prime location on the Kunming Economic Corridor (China) Lao Cai - Hanoi - Hai Phong (Vietnam), Lao Cai Border Gate Economic Zone (an important gateway connecting Vietnam with the market) Southwest China, ASEAN countries as well as the world and vice versa). The province has well-implemented investment policies to facilitate the process of attracting FDI into the province. Accordingly, investment projects in the province enjoy the highest incentives according to current regulations, especially incentives on corporate income tax, personal income tax, import and export tax, money taxes on land and water, creating an important initial foundation, helping to save costs for businesses to deploy important project items.
From 1996 to 2021, Lao Cai attracts nearly 70 FDI projects with a total registered investment capital of over 680 million USD, projects mainly focus on exploiting the province's strengths and advantages such as tourism, services, border gate economy, mining, and mineral processing. The distribution density of FDI projects is uneven, concentrated in Lao Cai city, Sapa town, and industrial parks of the province. Investors in Lao Cai are mainly from countries: China, Singapore, France, the Netherlands,… and some other countries.
Compared to the whole country, Lao Cai's FDI investment results are assessed at a low level, however, compared to the region, mountainous provinces, and the low starting conditions of Lao Cai province (re-establishing the province on October 1, 2020 in 1991), the results of attracting FDI investment of Lao Cai can still be assessed as having achieved encouraging results.
The journey to attract FDI investment has contributed to growth, economic restructuring, job creation, increased labor productivity, increased budget revenue for the province, improved human resources, absorption of new technologies and know-how business management of foreign companies, expansion of foreign relations./.