Lao Cai province eyes $12.4 bln in FDI by 2030

Northern Vietnam's Lao Cai province, home to the famous resort town of Sa Pa, is aiming to attract VND774 trillion ($33 billion) of investment from 2021-2030, including VND290 trillion ($12.4 billion) in foreign direct investment, to implement its newly-approved provincial plan.

Of the domestic sources, VND80 trillion ($3.41 billion) will come from the state budget, VND6 trillion ($255.7 million) from official development assistance (ODA), VND6 trillion from government bonds, VND122 trillion ($5.2 billion) from domestic businesses, and VND270 trillion from households.

Under the plan, the mountainous province is aiming to reach gross regional domestic product (GRDP) growth of 10% annually in the period, with the industry-construction sector accounting for 50.6% of GRDP, trade-services 36%, and agriculture-forestry-fisheries 7.7%.

Labor productivity is set to increase 7.5% yearly and the urbanization rate will rise to 45%.

By 2050, Lao Cai wants to become an economic hub for Vietnam’s northern highland region, and also an integral part of the Kunming (China)-Lao Cai-Hanoi-Haiphong-Quang Ninh economic corridor, which will link ASEAN, Vietnam, China, and Europe.

Regarding infrastructure, by 2030, Lao Cai seeks to complete the Hanoi-Lao Cai Expressway, build a railway connecting Yunnan province in China, and develop the Lao Cai-Hanoi-Haiphong railway with a standard 1.4-meter track gauge.

With tourism as its major economic driving force, Lao Cai also plans to upgrade Sa Pa Airport into an international terminal, establish helicopter airfields in Bac Ha and Bat Xat districts and Sapa town, and build at least three luxury resorts featuring casinos.

Lao Cai’s GRDP growth reached 6.9% in the first quarter of this year, above Vietnam’s GDP growth of 3.2%. In the first three months, tourist arrivals tripled year-on-year to over two million, including 87,000 foreigners. As a result, Lao Cai reaped a tourism revenue of VND5.85 trillion ($249.14 million). Lao Cai is home to the famous resort town of Sa Pa.