Major infrastructure investments needed to spur northern midlands, highlands growth in Vietnam

By Minh Hue
Sun, December 3, 2023 | 8:48 am GMT+7

Vietnam should build and upgrade expressways and airports to boost development in the northern midland and highland region, said Singapore-headquartered EnCity International Consulting JSC.

Ta Leng field in Tam Duong commune, Lai Chau province, northern Vietnam. Photo courtesy of Voice of Vietnam (VOV).

Ta Leng field in Tam Duong commune, Lai Chau province, northern Vietnam. Photo courtesy of Voice of Vietnam (VOV).

It said this region holds an important national security, socio-economic and political position, but faces many challenges and drawbacks.

The northern midland and highland region includes Ha Giang, Tuyen Quang, Cao Bang, Lang Son, Lao Cai, Yen Bai, Thai Nguyen, Bac Kan, Phu Tho, Bac Giang, Hoa Binh, Son La, Lai Chau and Dien Bien provinces.

EnCity International, which is a consultant for the master plan for the northern midland and highland region for the 2021-2030 period, with vision until 2050, outlined several solutions at a feedback gathering conference held in Hanoi on Friday.

It argued that the region plays a decisive role in the energy, water resources and ecological environment for northern Vietnam as a whole, but finds its growth hampered by poor traffic connections.

It still takes a long time to travel within the region and from there to the country’s major economic centers and border trade areas. For instance, to get to Hanoi, the average travel time is over six hours and the maximum travel speed in the East-West direction is just 30-40 km per hour.

Therefore, investment in the North-South Expressway should be prioritized until 2030, and there should be more routes leading to the sea, border gates and socio-economic hubs. The expressway section connecting Hoa Binh and Thanh Hoa provinces and National Highway 16 linking with Thanh Hoa and the north-central region need particular attention, the firm said.

The government and localities also need to upgrade National Highway 4 and National Highway 37 to speed up the East-West connection.

The planned upgrades for the Dien Bien, Lai Chau and Na San (Son La) airports and as well as the new airport in Sapa, a famous tourist attraction in Lao Cai province, will also boost socio-economic development through tourism and increased commerce.

The consultant also proposed adding a high-speed route (80 kilometers per hour) from Hoa Binh to Ninh Binh province in order to increase connectivity with North-South routes.

After 2030, the government and concerned localities should focus on strengthening the East-West connection, and consider investing in the Son La-Yen Bai Expressway (along National Highway 37), cutting travel time from the agricultural product hub of Son La and the northwestern region to major ports by more than an hour as well as linking the Dien Bien-Son La-Yen Bai tourism chain, the firm advised.

An expressway linking Lang Son province and Tien Yen district in Quang Ninh province should be built to have one more route to the sea, it added.

Tap China proximity

Commenting on the master plan, Minister of Planning and Investment Nguyen Chi Dung emphasized the need to boost infrastructure connections with China as this region borders two Chinese provinces - Yunnan and Quangxi. The region should take optimum advantage of its proximity to China, the world’s second largest economy, he reiterated.

“It is necessary to strengthen connections with China to create development momentum for the whole region as well as localities in the plain," he said.

About the proposal to invest in the Hoa Binh-Thanh Hoa expressway, the minister agreed that it was a solution to connect the region with Nghi Son seaport in Thanh Hoa province.

"The routes, when formed, will quickly link remote mountainous provinces with coastal areas, airports, seaports and important border gates," he said.

Four sub-regions

EnCity International also proposed dividing the northern midland and highland region into four sub-regions, six economic corridors, three belts and growth poles to create closely linked areas capable of sharing infrastructure effectively.

Sub-region 1 will be a green growth area associated with sustainable agriculture, eco-tourism and clean energy, with Hoa Binh as the growth pole and Son La as the center of agricultural product processing and social services.

Sub-region 2 will be a major tourist area, a hub for economic and cultural exchanges with Yunnan and other southwestern provinces of China with two growth poles in Lao Cai and Phu Tho.

Sub-region 3-Thai Nguyen province will be the medical, tourism and industrial center of the whole region, as well as a place to preserve history with the potential to develop tours of historical relic sites.

Sub-region 4, including Lang Son and Bac Giang, will be a place of great growth and the industrial center of the region. This sub-region has one of the country's most important international border gates connecting with Guangxi and other southern provinces of China. Bac Giang can also be developed into the region's semiconductor industry hub and one of the country's centers in this industry.

Comments (0)
  • Read More
Japan pneumatics firm SMC to start $330 mln Vietnam expansion from July

Japan pneumatics firm SMC to start $330 mln Vietnam expansion from July

SMC Manufacturing Vietnam, under Japanese pneumatic instrument producer SMC, aims to start its $330 million expansion in Vietnam from July.

Industries - Mon, February 17, 2025 | 10:47 am GMT+7

Institutional breakthroughs to provide solid foundation for heightened business confidence: economists

Institutional breakthroughs to provide solid foundation for heightened business confidence: economists

At a meeting of the National Assembly's Economic Committee in early February, the government proposed the 2025 GDP growth be "8% or more", instead of 6.5-7% set last November. The Investor introduces opinions of some leading Vietnamese economists on this proposed target.

Economy - Mon, February 17, 2025 | 8:02 am GMT+7

Vietnam consumer credit enters new growth cycle

Vietnam consumer credit enters new growth cycle

After the decrease in consumer capital demand, negative growth, and peaking bad debts in 2023, Vietnam’s consumer financial market is entering a new growth cycle, backed by positive signs from the macroeconomic environment.

Finance - Sun, February 16, 2025 | 3:19 pm GMT+7

Vietnam property investors seek new opportunities in provincial markets

Vietnam property investors seek new opportunities in provincial markets

Real estate investors in Vietnam, both individuals and organizations, are shifting their investments from city centers to suburban regions and neighboring provinces where land remains abundant and significant investments are being made in infrastructure, particularly in transportation.

Real Estate - Sun, February 16, 2025 | 2:00 pm GMT+7

Five Vietnam pilgrimage destinations perfect for spiritual seekers: Booking.com

Five Vietnam pilgrimage destinations perfect for spiritual seekers: Booking.com

Booking.com, the world's leading digital travel company, has suggested some destinations in Vietnam for those seeking spiritual enrichment and a chance for reflection and connection, including Ba Den mountain and Bai Dinh pagoda.

Travel - Sun, February 16, 2025 | 10:59 am GMT+7

Malaysia takes the lead in data center development

Malaysia takes the lead in data center development

Malaysia is making efforts to align with the global trend towards digitalization, which is driving demand for data centers, cloud computing, blockchain, and artificial intelligence (AI).

Southeast Asia - Sun, February 16, 2025 | 10:57 am GMT+7

WB sees Thai fiscal risks mounting due to spending surge

WB sees Thai fiscal risks mounting due to spending surge

Thailand’s pursuit of an expansionary fiscal policy strategy to propel growth faces the risk of rising costs for elderly care, investment and the need to keep public debt level to sustainable levels, according to the World Bank.

Southeast Asia - Sun, February 16, 2025 | 10:41 am GMT+7

Vietnam mining stocks rally amid global trade tension

Vietnam mining stocks rally amid global trade tension

Shares of Vietnam’s mining companies have rallied since early this month, fueled by heightened global trade tensions following the start of Donald Trump’s second term as the U.S. president.

Finance - Sun, February 16, 2025 | 10:36 am GMT+7

Online purchase below VND2 mln may be exempt from Vietnam import tax

Online purchase below VND2 mln may be exempt from Vietnam import tax

The Vietnamese Ministry of Finance has proposed exempting goods purchased through e-commerce platforms worth no more than VND2 million ($78) from import tariff, with an annual purchase limit of VND96 million ($3,781).

Finance - Sun, February 16, 2025 | 8:00 am GMT+7

Malaysia expected to remain magnet for FDI

Malaysia expected to remain magnet for FDI

Malaysia’s foreign direct investment (FDI) is expected to remain robust in the long term, but there could be repercussions in the short term as investors hold back on their investment decisions amid heightened global uncertainties.

Southeast Asia - Sat, February 15, 2025 | 9:01 pm GMT+7

Laos to build $1.9 bln wind power plant to export electricity to Vietnam

Laos to build $1.9 bln wind power plant to export electricity to Vietnam

The Lao Government and Chitchareune Construction - a Lao builder will jointly build the 1,200 MW Nong wind power plant, with an investment of $1.9 billion, to export electricity to Vietnam.

Energy - Sat, February 15, 2025 | 8:46 pm GMT+7

Malaysia needs more funding for semiconductor sector

Malaysia needs more funding for semiconductor sector

Malaysia needs more funding for the implementation of the National Semiconductor Strategy (NSS) to enhance its competitiveness with neighboring countries, said Penang Chief Minister Chow Kon Yeow.

Southeast Asia - Sat, February 15, 2025 | 4:31 pm GMT+7

Thailand considers easing rules on income from overseas

Thailand considers easing rules on income from overseas

Thailand’s government is considering easing personal income tax rules for individuals’ overseas income to encourage the remittance of those funds back into the country, said a senior official.

Southeast Asia - Sat, February 15, 2025 | 4:29 pm GMT+7

Nissan to close factory in Thailand

Nissan to close factory in Thailand

Japanese automaker Nissan has announced plans to close one of its two automobile factories in Thailand this year, following the collapse of merger talks with Honda.

Southeast Asia - Sat, February 15, 2025 | 4:10 pm GMT+7

Vietcombank leads Vietnamese banks in 2024 pre-tax profit

Vietcombank leads Vietnamese banks in 2024 pre-tax profit

Vietcombank reported a pre-tax profit of VND42.2 trillion ($1.66 billion) last year, ranking as the most profitable Vietnamese lender, according to the Vietnam Banking Association (VNBA).

Banking - Sat, February 15, 2025 | 4:04 pm GMT+7

Vietnam's leading trade firm Hapro appoints new general director

Vietnam's leading trade firm Hapro appoints new general director

Hanoi Trade Corporation (Hapro), a leading producer and exporter of agricultural produces in Vietnam, has appointed deputy general director Duong Thi Lam as general director, effective from March 1, 2025.

Companies - Sat, February 15, 2025 | 2:18 pm GMT+7