Vietnam's Lai Châu province secures $1.1bn in investment approvals

Vietnam’s mountainous northern province of Lai Châu secured investment approvals valued at over VNĐ27.7 trillion (US$1.1 billion) at a promotional conference on Tuesday, a key move in its strategy to leverage private capital for long-term economic development. Alongside the approvals, the province signed investment cooperation agreements worth more than VNĐ172 trillion, targeting a diverse range of sectors including energy, high-tech agriculture, mineral processing, infrastructure, and culture and tourism.

Speaking at the conference, Deputy Prime Minister Phạm Thị Thanh Trà said, "Lai Châu is well positioned for future growth," citing its strategic location, abundant natural resources, biodiversity, vast mineral reserves, and the unique cultural heritage of its ethnic communities as key advantages for attracting both domestic and foreign capital.

Trà noted the province's potential to serve as a gateway connecting Vietnam's northwestern region with ASEAN markets, which could unlock new economic development opportunities.

She commended Lai Châu's progress in reshaping its development strategy since the beginning of the 2025-2030 provincial Party Congress term, highlighting its work on refining planning, identifying new growth drivers, and preparing the groundwork for future investment. The deputy prime minister also praised the province's efforts in decentralising decision-making, streamlining administrative procedures, and improving the investment climate, describing Lai Châu as one of Vietnam's leading localities in administrative reform and business environment improvements.

Looking ahead, Trà advised that Lai Châu should continue to enhance its investment environment by further simplifying administrative processes, accelerating land clearance, and completing zoning plans to expedite project implementation.

She called on central ministries and agencies to increase coordination to support the province's development, urging them to help remove investment bottlenecks, mobilise official development assistance (ODA), and attract strategic investors committed to the province's green and sustainable growth.

Addressing the business community directly, Trà urged investors to ensure their commitments are translated into effective and sustainable projects. She highlighted specific opportunities in renewable energy, pharmaceuticals and medicinal herbs, including Lai Châu ginseng, as well as eco-tourism, resort tourism, and agriculture and forestry.

Attracting investment should not come at the expense of sustainable development, she said, stressing that "project quality is more important than the volume of investment." Trà emphasised that future investments must strike a careful balance between economic growth, environmental protection, and tangible improvements in local living standards.

Hà Quang Trung, Chairman of the Lai Châu People's Committee, outlined the province's ambition to achieve double-digit economic growth for the next five years. The ultimate goal, he said, is for Lai Châu to become a moderately developed province within the northern midlands and mountainous region by 2030.

Trung highlighted Lai Châu's advantages in renewable energy, commercial agriculture, medicinal plants, tourism, border trade, and logistics. He noted that the administration has introduced a "green channel" mechanism for priority private investment projects, alongside administrative reforms and other policies designed to improve the business environment.

Under its 2021-2030 provincial development plan, Lai Châu is targeting an average annual gross regional domestic product (GRDP) growth of 9-11 per cent, while concurrently promoting green development, environmental conservation, and improvements in living standards.

Lê Minh Ngân, secretary of the Lai Châu Provincial Party Committee, reaffirmed the local government's commitment to creating a favourable investment climate. "The success of businesses would be a key measure of the effectiveness of the local government's leadership and administration," Ngân stated.

He pledged that the province would continue to streamline administrative procedures, ensure the transparent implementation of investment incentives in line with the law, prioritise strategic infrastructure development, and work closely with investors to resolve obstacles to project implementation. Ngân also pledged to maintain social stability and a safe investment environment to support businesses' long-term operations in the province.

The conference also served as a forum for presentations by representatives from central ministries, economic experts, businesses, and investors on Lai Châu's investment potential and development priorities. Discussions focused on opportunities in high-value sectors such as medicinal plants and biotechnology, renewable and green energy, high-tech agriculture, and the circular economy. Speakers also shared investment experiences and explored strategies to position Lai Châu as a leading green investment destination in the northwestern region.