Lai Chau

Location Presentation


 - Lai Chau is the province near borderland in the north-east of the nation, is 450 km far from Ha Noi towards South-east direction.


- Lai Chau is the critical border area which has missions of ensuring energy security, water security and environment security of North Vietnam delta area.




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Geographical location:


Lai Chau province is located in the northwest of Vietnam. The province shares its borders with Yunnan province (China) to the North, with other provinces of Lao Cai, Yen Bai, and Son La to the East and with Dien Bien to the West and Southwest. The province has a common border with China of 273 km in length. It is located between two famous tourist areas such as Sa Pa and Dien Bien Phu. It has National Roads 4D, 32, 12 linking Lai Chau with Hanoi - Dien Bien - Lao Cai and Yunnan (China). Located here is Ma Lu Thang national border gate that facilitates foreign trading.




Total natural area of  Lai chau is 9,068,878.88 ha with above 60% of the area  on the height of 1000m; more than 90% of the land area has the slope greater than 250,, mostly yeallowish red soil developed on sandstone and limestone with rather tight structure. Specifically, there are 490,939.96 ha of agricultural land, 28,240.83 ha of non-agricultural land. A large area of land is not used 387.697,91 ha (unused flat land: 951.55 ha, unused mountain and hills area: 378,160.42 ha).




Lai Chau province has a population of about 403,200 people, including 20 ethnics. The population density is 43 people/km².


Socio - economic situation:


The economical structure of Lai Chau province is: Agriculture - forestry - fishery 32%, Industry 35%, services 33%. State budget reaches VND160 billion. Total value of exports reaches USD10 billion. Total quantity of food reaches over 150,000 tons, food per capita reaches 400 kgs/person/year. Land area for planting tea reaches 4,500 hectares, in which the new cultivation is 500 hectares; area of cardamom reaches 3,000 hectares (new cultivation area: 1,000 hectares); The growth rate of cattle reaches 6- 7%.


FDI attraction:


As of 2013, Lai Chau had 04 foreign investment projects with total registered capital of USD 4 millions, ranking 62nd in the country.


Infrastructure system:


Traffic system in Lai Chau province is roadway mainly. There is National Road 12 connecting Dien Bien Phu city to China (passing through the Ma Lu Thang border gate), National Road 4D leading to Sa Pa town  of Lao Cai province. Lai Chau is the important connection between the wide continent of China’s western south with the Key Economic Triangle Ha Noi – Hai Phong – Quang Ninh through the National Roads 4D, 70, 32 and Da river’s waterway.

In economic-socio development direction of period 2006-2020, Lai Chau province targets: survey to construct airport with small scale, research to construct the railway route: Yen Bai – Van Chan – Mu Cang Chai – Than Uyen – Tam Duong to improve the traffic situation between Lai Chau and other provinces of the country.


Potential for development:


a. Agriculture, forestry and fishery:

Lai Chau has 9,112 km2 of natural land. With many different climate zones, fertile land and large area of water surface on hydropower reservoirs, the province is focusing on developing agriculture and forestry. Since there are a number of zones lying on the height of over 1,00 meters above sea level like, Lai Chau has great potential for cultivation of various kinds of vegetables, flowers, medicinal herbs, temperate fruit trees in Sin Ho, Ho Thau and Dao San highlands; tea trees in Lai Chau town, Tam Duong and Tan Uyen districts; afforestration (commercial forest and protection forest); and aquaculture on hydropower reservoirs etc., in association with processing industry. b.Industry:

Mining industry:Lai Chau is a mountainous province, rich of mineral and natural resources. There are over 20 different types of minerals and around 120 mining points withnumerous rare minerals such as gold ore, copper, iron, aluminum, lead, zinc, rare earth in Dong Bao and Nam Xe (Phong Tho district), black stone in Nam San (Sin Ho), white stone, colour stone, etc. This is a great opportunity for mining industry and construction materials production. 

Hydropower: Lai Chau has many mountains and plateaus. The mountains are high and steep, alternated by deep and narrow valleys; there are many rivers and streams (river density: 5.5-6 k/km2), many waterfalls and rapids with huge discharge; big annual average rainfall (2,500mm-2,700mm/year), hencethe province has big potential forgreen energy development like hydropower.

c. Tourism:

Lai Chau is a mountainous province, located between two famous tourism sites (Sapa and Dien Bien Phu), having a number of national roads running through likeRoad #4D, #32, #12 connecting Lai Chau to Hanoi – Dien Bien Phu – Lao Cai and Yunnan (China);the waterway and lanscape of Da river beside big reservoirs of hydropower plants of Son La, Lai chau, Huoi Quang, Ban chat; and many beautiful ntural landscapes such as: Tien son rock field, Tac Tinh waterfall, Ho Thau rock field,  Pusamcap rock field, Sin ho rock field, forest on the slope of Hoang Lien Son mountain with cultural identity of 20 ethnic groups. These are favourable conditions to attract investment for development of various types of tourism (cultural tourism, adventurous tourism). Especially, the province has typical climate areas (cool weather all year round) since there are some areas lying on the height of 1000m above sea level (Sin ho highland; Dao San area in Phong Tho district), Ho Thau and Hoang Lien Son range (Tam Duong district). This is a potential for development of relaxation and eco-tourism.


Investment attraction orientation




- To develop advantageous industries such as:  hydropower, agro-forestry processing, construction materials, mineral exploitation, traditional handicraft and industrial establishments to serve resettlement program of hydropower projects;

- To establish Phong Tho Industrial Park (production of cement, mineral processing, constrution materials) and to form some industrial clusters in Lai Chau town, Nam Hang (Muong Te district), Pu Sam Cap (Sin Ho), Than Uyen town…

Hydropower: A number of mall and medium-sized hydropower projects will be planned, surveyed and constructed along with the construction of hydropower plants in Lai Chau, Ban Chat and Huoi Quang.


- To explore and exploit the gold mine in Pu Sam Cap; survey and explore the mines of rare earth, copper, lead, zinc; organize the exploitation of small mines; encourage enterprises to invest in mining in parallel with mineralsprocessing right in the province area.

Production of construction materials:

- Toextend the exploitation capacity of black quarry in Nam Ban (Sin Ho); survey, exploit, explore and process color stone and white stone for the construction industry and for export;construct a Tuynel brick Plant, a cement Plant with appropriate capacity in area of  Muong So junction to meet the construction demand of civil and irrigation works.

Agriculture – forestry processing:

-To raise the capacity of Lai Chau Paper Plant while diversifying its products; increase thecapacity and product quality of tea plants in Tam Duong, Than Thuoc; gradually form agricultural processingestablishments (animal feed processing, animal slaughter) etc ...

Other industries: Encourage the manufacture of hand tools and the establishment of private mechanical workshops.

-Trading – service:Speed up the development of service sector to make it a sector possessing high GDP proportion in the province.


Economic zones and industrial parks in the province:


a. Muong So industrial park:

Location: Phong Tho district, Lai Chau province.

Area: 200 hectares

b. Tam Duong industrial zone:

Location: Tam Duong district, Lai Chau province

Area: 200 hectares

Investment incentives

a. Incentives on land

Apart from investment preferential policies stipulated by the Government, Lai Chau province applies highest investment incentives in the framework which is allowed  by the law. Main content of the preferential investment policies are as follows:

- Exemption from land use fees for investment projects in the special incentive sectors or special agricultural incentive sector;

- Reduction of 50% of land use fees payable to the state budget, applicable for projects in the sectors of investment incentives;

- Reduction of 30% land use fees payable  to the state budget,applicable for projects not included in the sectors of investment incentives and special investment incentives;

Exemption and reduction of land rent, water surface rent (from the date of completion of construction and start of operation of the project):

- For projects in the sectors of investment incentives or special investment incentives;  exemption time: 15 years;

- For projects not included in the sectors of  investment incentives or special investment incentives; exemption time:11 years.

- Investors are also entitled to exemption and reduction of land rent, water surface rent for investment projects in investment incentive sector damaged by natural disasters, fires or other unforseen circumstance

b. Tax incentives: Corporate income tax and import duties

c. Incentives on investment credits and export credits:

Incentives on investment credits and export credits are implemented in accordance with Decree No 75/2011/ND-CP dated 10 August 2011 on investment credits and export credits of the State.

Investment support:

a. Support for labor training;

b. Support for transportation fee;

c. Support for construction of technical and social infrastructure outside the border of industrial parks, industrial clusters and economic zones, including: roads, power supplynetwork, drainage network, communication network.

d. Support for development of economic infrastructure system inside industrial parks, industrial clusters and economic zones.

e. Support for land compensation cost inside industrial parks, industrial clusters and economic zones.


Projects calling for investment


a. Safe poultry raising on industrial scale (location: across the province);

b.Safe pig raisingon industrial scale (location: across the province);

c. Aquaculture in the hydropower reservoir ( area: 20 hectares).

d. Building nursery gardens to provide agricultural and forestry varieties for local market (location: Tam Duong and Sin Ho Districts (area: 40 hectares).

e. Animal and fish feed processing (location: across the province; capacity: 20,000 tons/year)

f. Solid waste treatment Plant (Capacity:10 tons of waste/day; location: in the province

g. Infrastructure development in industrial clusters(location: Tam Duong, Tan Uyen and Phong Tho districts; area: 500 hectares).

h. Manufacture and assembly of mechanical machinery(On the whole province; area: 5 hectares).

i. Investment in Sin Ho highland tourist site (Location: Sin Ho district; area: 10 hectares).




No  Project  Location  Scale (ha)  Investment  Form of investment  Contact 
1 Project of economic and protective afforestation Within the province 1.500 ha 1 tmillion USD FDI, BT, DI Lai Chau Planning and Investment Department Add: The 7th Floor, Building B, Lai Chau Administrative - Political Center
Tel: 02313.876735;
Fax: 02313.876437
2 Cultivation and development project of materials area along with the processing of high quality Tea Districts included: Tam Duong, Tan Uyen, Than Uyen and Sin Ho  200 ha 0,7 million USD FDI, BT, DI
3 Project of breeding cattle and poultry Within the province 1.000/project 0,5 million USD FDI, BT, DI
4 Cultivation and processing project of trees for pharmaceutical materials Within the province 5 ha 0,5 million USD FDI, BT, DI
5 Project of aquatic products cultivation in hydropower reservoirs At hydroelectric reservoirs  20 ha 1,4 million USD DI
6 Production and processing project of food for cattle, poultry and aquatic products Within the province 20.000 tons/year 2,4 million USD FDI, BT, DI
7 Preservation and processing project of agricultural products Within the province 10 ha 0,7 million USD FDI, BT, DI
8 Construction project of plant for manufacturing micro-organic fertilizer Phong Tho District 200 ha 2,4 million USD FDI, DI
9 High-tech agricultural project Lai Chau Town and Sin Ho District 2 ha 0,5 million USD FDI, DI
10 Construction project of processing facilities for cattle and poultry Lai Chau City 1 ha 0,24 million USD FDI, DI
11 Construction project of Than Uyen MDF timber processing plant Than Uyen District 3 ha 1,2 million USD BCC, BOT, FDI, JV, TelNN  
12 Investment project of tourism site in Sin Ho plateau Sin Ho District 10 ha 3,8 million USD FDI, DI
13 Investment project of ecotourism area in Sin Ho lower area Sin Ho District 10 ha 1,2 million USD FDI, DI
14 Investment project of Vang Bo mineral spring tourism site Phong Tho District 10 ha 0,95 million USD FDI, DI
15 Investment project of Ho Thau Ecotourism site Tam Duong District 30 ha 2,4 million USD FDI, DI
16 Investment project of ecotourism site of Hoang Lien Son Moutain pass Tam Duong District 30 ha 0,95 million USD FDI, DI
17 Construction investment project of Ma Lu Thang national gate market Phong Tho District 2 ha 0,7 million USD FDI, DI
18 Construction project of mineral spring residence - tourism site Districts: Tan Uyen, Tam Duong 1 ha to 5 ha 0,94 million USD BCC, BOT, FDI, TelNN
19 Construction project of the infrastructure of Tac Tinh Waterfall tourism area - Si Tau Chai, Tam Duong Town Tam Duong District 3 ha 1,4 million USD BCC, BOT, FDI, TelNN
20 Construction project of ecotourism site in the reservoir of Lai Chau Hydropower Muong Te District 500 ha 1,4 million USD BCC, BOT, FDI, TelNN


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