(VEN) - According to the Son La Province Department of Planning and Investment, 175 domestic investment projects with a total registered capital of VND26.925 trillion and 10 foreign direct investment (FDI) projects with a combined registered capital of US$120.45 million have been licensed in the province.
(VEN) - According to the Son La Province Department of Planning and Investment, 175 domestic investment projects with a total registered capital of VND26.925 trillion and 10 foreign direct investment (FDI) projects with a combined registered capital of US$120.45 million have been licensed in the province.
This remained disproportionate with the potential of the border province that has a total area of 14,125 square kilometers and a population of 1.108 million. The department attributed these modest achievements to the fact that Son La remains a poor province that is located far from the country's major economic hubs, and that inadequate infrastructure, capital, labor, technology and other service markets had hindered growth. Investors needed to be made more aware of Son La's potential and advantages.
Department leaders said that Son La is a northwestern province, borders Yen Bai, Phu Tho, Hoa Binh, Dien Bien and Thanh Hoa provinces and shares a 250km long borderline with Laos. Located in the heart of the northwestern region, Son La plays a strategic role in developing socioeconomic relations with provinces in northern Laos, they said.
Many precious minerals such as coal, nickel, copper, iron, talcum and cobble are found in Son La so the province has the potential for industrial development. Moc Chau, Phu Yen, Muong La and Mai Son industrial zones (for small to medium-sized businesses) have been formed in Son La.
Moc Chau and Na San plateaus are something typical of Son La. Located 1,050 meters above sea level and with a total area of 20,000 hectare and a temperate climate, Moc Chau Plateau is well suited for developing tea, vegetables and flowers and farm produce processing centers. It is also well suited for cattle farming. The plateau is famous for its Moc Chau cow's milk and Moc Chau beef cows.
Son La and Hoa Binh hydroelectric projects in the province provide conditions for aquaculture and fishing. Picturesque landscapes and traditional festival and cultures have helped Son La develop tourism and attract visitors.
Son La is still an especially difficult locality so investors in the province are beneficiaries of the best preferences according to the 2005 investment law and Government Decree 108/2006/ND-CP dated September 22, 2006.
Apart from the Government's preferential policies, provincial authorities issued many policies to encourage investment in rubber cultivation and cattle farming.
The province established a land development fund to assist investors in site clearance and site clearance compensation while creating conditions to favor administrative formality accomplishment and issuing policies promoting human resources training, agriculture and rural development and honoring businesses and entrepreneurs.
Projects, which haven't found funding for site clearance and related compensation, shall have part or all of that funding paid in advance by the province so the site clearance can be done on time. For projects whose investors already paid for site clearance, the funding they paid shall be installment deductions into land rent or land use charge that the investors have to pay. Businesses can have up to 70 percent of the advertising cost (for ads made through the media in the locality where they are located) supported by the province. They can also have 70 percent of cost of participating in domestic exhibitions and fairs supported by the province, and have free access to market and price information from provincial trade promotion agencies. Businesses can have 50 percent of new technology research and creation cost supported by the province if they do the research and creation themselves./.
By Nguyen Hoa
