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Lao Cai

Location Presentation

 

- Lao Cai is a border upland province in the northern of Viet Nam, the north of Lao Cai borders on Van Nam province (China), the west borders on Lai Chau province, the east borders on Ha Giang province, and the south borders on Yen Bai province.

 

- Lao Cai is a border gateway in the north-western of nation, with hundreds kilometers of border on China. Lao Cai is a strategic location in economy, political affairs, security and defense.

 

- Distances from the centers and big cities:

+ Is 296km of railway and 375km of road distance from Ha Noi.

+ Is 160km away from Yen Bai and 125 km away from Lai Chau.

 

 

 

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Introduction

 

Geographical location:

Lao Cai is a province in the mountainous Northwest region of Vietnam with an area of 6383.89 square kilometers, bordered by Yunnan province (of China) to the North, by Yen Bai province to the South, by Ha Giang province to the East, by Lai Chau province to the West. Lao Cai shares 203.5 km border with Yunnan (China).    

 

Area:

6,383.89 km2.

 

Population:

Lào Cai population is 613,075 people, in which the number of people in the working age accounts for 52%; population density is 96 people/km2.

 

Socio-economic development:

GDP:  In September 2013 alone, contribution to State budget was VND321 billion; accumulation amount as of Sep.27th was VND3,364 billion, equal to 93.4% of estimation and up by 72%.

Industry-construction: In general, industrial production value in the province area was VND9.141 billion, up by 18.46% (in which exploiting industry rose 26.6%, processing industry 11.3%, electricity 38.71%).

Trade and service: Total retail sales and service turnover valued VND10.045 billion, up by 17%.

Tourism:accumulation number of arrivals was 956,300 arrivals, equal to 81%, up by 14%. Tourism turnover was estimated to reach VND214.6 billion; accumulation amount wasVND1927.5 billion, up by 24.3%.

 

FDI attraction:

As of 2013, Lao Cai had 31 foreign investment projects with total registered capital of USD 405.16 million, ranking 39th in the country. In 2013, Lao Cai issued new investment certificate for 01 project with total newly registered capital of USD3 million. The number of expansioncapital projects was 2 with total capital of USD5 million. So, in 2013, the province attracted USD8 million FDI, ranking 45th in the country.

 

Infrastructure:

Road network: there are 04 National Roads running through the province area (namely #4D, #4E, #279, #70) over 400 km; 08 provincial roads of 300km in length; 1000km of village and commune roads.The transport network is distributed evenly across the districts, city and communes. The 264km-long Hanoi-Laocai highway on the right side of the Red River is under construction, connecting to Kunming-Hekou Highway (stage I) through the border-gate bridgeof  Kim Thành Trading-Industrial Estate.

Riverway: There are 02 big rivers, the Red river and Chảy river running through the province, creating a smooth transport system. Though there are many rivers in the province area like the Red river (130km in length and sharing with China on a length of 75km), the river transport system has been still undeveloped due to a lot of falls and rapids.

Airline: The Government is considering of building an airport in Lao Cai province in period 2010-2015.

Electricity network: 9/9 city and districts, 164 communes, wards and towns,  75% of households have access to national grid.

Water supply:there is a safe water supply system covering Lao Cai city and most of districts beside a lot of wells, supplying 69% clean water to the residents. 

 

Potential for development:

Industrial potential:

Lao Cai is enriched with minerals. There are 35 kinds of minerals, 150 mining points with high quality, big reserves, eg: Apatite (2.1- 2.5 billion tons), iron (137 million tons), copper, gold, graphite, precious soil,  fenpat, ceramic materials, etc.

Many minerals are under exploitation for deep processing in Lao Cai such as apatite ore (processed in 03 factories with capacity of 100,000 -700,000 tons per year); copper smelting factory (10,000 tons per year); supe phosphrous factory (100,000 tons per year); Animal Feeds Additives DCP factory (200,000 tons per year) etc. An iron plant (1 million tons per year), the DAP No.2 ( 330,000 tons per year) is under construction.

 

Agricultural- forestry potential:

Lao Cai's terrain is markedly stratified. The tropical moonsoon climate is seen in 02 areas: the highland with average temparature betwween 150C - 200C, cool weather in Summer, cold in Winter, suitable for cultivation of apple, pear, peach, plum trees, roses, lily, cymbidium flower, material plants, off-season vegetable, cold-water fish like salmon, sturgeon etc. Products of this area are so special that they can not be found in the lowland, hence they form up an unique potential for Lao Cai province. 

The lowland, with average temparature between 230C - 290C, comprising villages located along the Red river and part of Chảy river, possesses typical tropical climate, hot and humid, very suitable for plantation of tropical fruit trees like pinapple, banana, orange trees, etc. This area is specially favourable for development of tea material zone and farming of animals, poultry, warm-water fish. Some intensive farming zones are being formed up in Lao Cai for cultivation of banana, tobacco, tea, pinapple trees, bring about high economic benifits.

 

Border-gate trading potential:

There are 02 international border gates in Lao Cai province, namely Lào Cai – Hekou (railway and roadway border gate) with 03 passings: Lào Cai International Railway Station, Road Bridge over  Nậm Thi river, Road Bridge over the Red river (connecting Hà Nội - Lào Cai Highway of Vietnam with Hekou - Kunming (China) Highway), the important bridge on the Kunming – Lào Cai - Hanoi - Hải Phòng economic Corridor, the gateway of Vietnam to ASEAN countries, the Centre of North-South Corridor in cooperation between the open Great Mekong Sub-region countries with Southwest market of China. Lao Cai international border gate is the only gate in Northern Vietnam that is located in a city which belongs to provincial management, therefore it is served by a full service system of a city. Besides, the transport network is convenient which helps Lao Cai to become a key gateway with the shortest journey between Vietnam to other regional countries via seaport to the Southwest China provinces.

Lao Cai is also the place for annual alternate trading fair between Lào Cai (Vietnam) and Hekou (Yunnan-China), which usually comprises over 600 stalls of domestic and foreign enterprises.

 

Tourism potential:

Lào Cai is rich of tourism resources which bear special characteristics in terms of both natural resources and heritage resources, located mainly in Sa Pa, Bắc Hà, Bát Xát and Lào Cai city. Lào Cai province possesses the role of a tourism centre in the Northwest mountainous sub-region. It is also adjacent to Yunnan, a province full of tourism potential of China. This is a good condition for Lao Cai to promote its tourism economy. Basing on advantages of geographical position, tourism potential, Lao Cai has developed numerous types of tourism like Culture-based tourism, relax tourism, ecotourism, site-seeing tourism, sports-tourism, scientific-research tourism, etc. This fact is shown through the continuously increased number of tourists to Lao Cai province.   

 

Investment attraction orientation:

Investment incentives:

Apart from the Central Government’s incentives, Lao Cai offers a number of preferential policies and incentives to enterprises operating in the province, such as: Policy for agriculture development in the province area (in Decision 60/2011/QĐ -UBND dated Dec. 30th, 2011 of the provincial People’s Committee); Policy for forest economy and production forest development (in Decison 52/2007/QĐ - UBND dated August 8th, 2007 and Decision 40/2009/QĐ - UBND dated Dec. 11th, 2009 of  the provincial People’s Committee ); Policy for industrial development (in Decision 63/2011/QĐ - UBND dated Dec. 30th, 2011 of  the provincial People’s Committee); investment incentives applicable for Lao Cai Border Gate Economic Zone (in Decision 20/2010/QĐ - UBND dated August 10th, 2010 of  the provincial People’s Committee); stipulations on investment activities in Lao Cai province (Decision 23/2010/QĐ - UBND dated August 18th, 2010 of  the provincial People’s Committee)

 

Land incentives:

Land rent term: as stipulated in Land Law of year 2003.

+ Land rent unit price : shall be the lowest in the tariff stipulated by the Government

+ Exemption of land rent in following cases:

- Investment projects in specially-encouraged sectors;

- Land rent exemption in 15 years for investment projectsin encouraged sectors ;

- Land rent exemption in 11 years for other projects.

 

Tax incentives:

+ Corporate Income Tax (CIT) incentives:

- CIT holidays for four years starting from the first year in which taxable income arises, and CIT reduction of 50% for up to nine subsequent years. 

- CIT rate is 10% applicable in 15 years from the first year of revenue generation;

+ Export and import duties are exempted in following cases:

- Temporary imports for re-export of goods for trade fairs and exhibition;

- Machinery, equipment imported for project work in a cerain period;

- Goods imported for processing for a foreign party;

- Goods imported for direct use in scientific research and technology development;

- Raw materials, supplies and components imported for production under investment projects in Lào Cai Border Gate Economic Zone are eligible to tax exemption for five years from the date of production commencement;

+ Personal Income Tax (CIT): Individuals (including Vietnamese and foreigners) working in Lào Cai Border Gate Economic Zone are eligible to a reduction of 50% of PIT rate for the income generated from his work in Lào Cai Border Gate Economic Zone.

 

Economic zones and industrial parks in the province:

Lào Cai Border Gate Economic Zone:

Lào Cai Border Gate Economic Zone was established to become a crucial economic zone for development of urban, industry, trade and service on the Hải Phòng - Hà Nội - Lào Cai Economic Corridor under the Vietnam-China Border Zone Development Plan until 2020; Lào Cai Border Gate Economic Zone comprises following functional estates: Trade-Industry estate, Industrial Park, Urban estate, Border-gate Control and Management estate; a number of  preferential policies and investment incentives apply here for investors.

 

Kim Thành Trade-Industry Estate:

- Location: in Lào Cai Border Gate Economic Zone. This is a non-tariff, non-residential estate bounded with solid fence connected to Bắc Sơn area, adjacent to Hekou district of China, via road bridge across the Red river.

-Area: Stage 1: 156 ha; stage 2: expanded to 400 ha.

-Function: Merchandise trade (including export, import, transhipment, temporary import for re-export, border-gate market, duty-free shops, duty-free super markets; Commercial services (classification of goods, packing, transport, reservation, warehouse, bonded warehouse, post and telecommunication, banking, finance etc.); investment promotion (trade fairs, exhibition, showroom, representative offices, company branches,  and other trading activities); Manufacture, processing, re-production, assembly, packing for export, import and on-site goods..

 

Đông Phố Mới IP:

- Location: in Lào Cai Border Gate Economic Zone, Phố Mới ward, Lào Cai city; adjacent to Lào Cai International Railway Station.

- Area: Total planned area: 100 ha; area for lease: 55.9 ha;

- Function: This IP is intended to be an ICD, petroleum storage,entropôt, green industrial production establishments, provision of service to Lào Cai - Hà Nội railway.

 

Bắc Duyên Hải Industrial Cluster:

-Location: in Lào Cai Border Gate Economic Zone, Duyên Hải ward, Lào Cai city, adjacent to Kim Thành Trade-Industrial Estate.

-Area: Total planned area: 80 ha; area for lease: 56.9 ha.

-Function: the IP is intended for green industrial production establishments, provision of assistance to processing and assembly factories, provision of service to Kim Thành Trade-Industrial Estate.

 

Tằng Loỏng IP:

- Location:inGia Phú commune, Phú Nhuận commune and Tằng Loỏng town, Bảo Thắng district.

-Area: Total planned area: 1,100 ha, in which the area for industrial production is 700 ha, and can be expanded upon requirements.

-Function: deep processing of minerals (apatite, copper, iron), chemical industry, metullurgy, engineering etc.

 

Projects calling for investment

Construction of warehouses for storage of agricultural, forestry and aquatic products:

- Objectives: to preserve agricultural, forestry and aquatic products ;

- Scale: 90,000 tons of material.

- Location: Kim Thành Trade-Industrial Estate

 

Manufacture, assembly of computer components, asseccories:

- Intended scale: 9 million products/year.

- Location: Kim Thành Trade-Industrial Estate

 

Construction of over-night car-parks and accommodation establishments near Kim Thành Land Border Gate No.2:

- Area: 5 ha

- Location: Kim Thành Trade-Industrial Estate

 

Park Lake and Amusement Park (following the model of Đầm Sen Park-Hochiminh city):

- Area: 2 ha

- Location: Bình Minh ward

 

Construction of Lào Cai airport:

- Area: 140 ha

- Location: Lào Cai city

 

Development of infrastructure for Tân An IP, Tân Thượng, Văn Bàn district, Lào Cai province:

- Intended area: 400 ha

- Location: Văn Bàn district

 

Construction of a Plant for the secondary mineral ore selection

- Capacity: 500,000 – 700,000 tons of pure ore /year.

- Location: Tằng Loỏng IP (Bảo Thắng district)

 

Manufacture of high-tech electric wire and cable

- Capacity: 9,000 tons of copper, aluminum per year

- Location: Tằng Loỏng IP (Bảo Thắng district)

 

Construction of DAP production Plant No.3 using secondary apatite ore

- Intended capacity: 250,000 tons per year

- Location: Tằng Loỏng IP (Bảo Thắng district).

 

 # LIST OF PROJECTS OF CALLING FOR INVESTMENT INTO PROVINCES

 

No  Project  Location  Scale (ha)  Investment  Form of investment  Contact 
  LAO CAI PROVINCE
1 Construction project of solid waste treatment plant in Tang Loong Industrial Park, Bao Thang District, Lao Cai Province Tang Loong Town, Bao Thang District, Lao Cai Province 1.100 ha 1100 billion dong ODA, FDI, DI Lao Cai Management Unit of Economic areas
Add: No. 001 Nguyen Hue, Lao Cai Ward, Lao Cai City, Lao Cai Province
Tel: 020 3 830 190
2 Investment project of the infrastructure (T2, T3 Routes) of Tang Loong Industrial Park, Bao Thang District Tang Loong Industrial area, Bao Thang District, Lao Cai Province Route T2: 37m, Building line: 57m; Coat width: 2x11,25m; separator between 2 coats: 2,5m; pavement width: 2x6m, length: 1.963m 750  billion dong BCC, FDI, BT, DI
3 Project of airport buildings Ban Cam 3, Ban Cam 4, Bao Thang District, Lao Cai Province Pre-investment coast: Project investigation: 2,200 million dong; Consultants and Survey: 6,300 million dong  5300 billion dong BCC, FDI, BT, DI Civil Aviation Authority of Vietnam
Add: 119 Nguyen Sơn, Gia Thuy Ward, Long Bien District, Hanoi
Tel: 04.38722394
Fax: 04.38271933 
4 Construction of preservation warehouse system for agricultural, forestry and aquatic products Kim Thanh Commercial and Industrial Park, Lao Cai Province 18,7 ha 350 billion dong BCC, FDI, BT, DI Lao Cai Management Unit of Economic areas
Add: No. 001 Nguyen Hue, Lao Cai Ward, Lao Cai City, Lao Cai Province
Tel: 020 3 830 190

 

For more information please visit at: http://www.laocai.gov.vn

 

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