31 August 2024

Focus on investing in logistics infrastructure, warehouses, and yards, especially in Lao Cai Border Gate Economic Zone, to facilitate the development of goods circulation and effectively exploit border gate economy, contributing to building Lao Cai into a center connecting trade between Vietnam and ASEAN countries with the Southwest region - China and further to Eastern Europe...

Kim Thanh Border Gate

On August 30, Minister of Industry and Trade Nguyen Hong Dien had a working session with Lao Cai provincial leaders on the situation of industrial production and trade activities and the implementation of national sectoral plans in the fields of energy and minerals in the province.

BORDER GATE ECONOMY STILL DEPENDS HIGHLY ON CHINA

At the meeting, Minister Nguyen Hong Dien assessed that Lao Cai is a border province considered as the "fence of the Fatherland". Located in the center of the midland and mountainous region of the North; belonging to the area of ​​2 major economic corridors (Lao Cai - Hanoi - Hai Phong - Quang Ninh and Lao Cai - Hanoi - Lang Son), Lao Cai is identified as the gateway connecting Vietnam and ASEAN countries with China. This shows that its geo-economic, geo-political and geo-defense positions are very important.

In addition, Lao Cai is also a place of "headwater rivers, top mountains" with famous and branded tourist destinations (such as Sa Pa, Fansipan peak, Bac Ha); In the future, there will be 3 large international border gates (currently there is 1 Kim Thanh international border gate, 2 border gates are being planned); multi-modal transport infrastructure development including road, rail, waterway, air (in the near future there will be air routes); rich in mineral resources with many precious, high-quality minerals and large reserves (apatite, iron, copper, etc.).

"Lao Cai has favorable conditions and converges full potential and advantages to become a growth pole of the region and the whole country, especially in the development of clean energy, mining industry, mineral processing, border gate economy, trade of goods, logistics services; Ecotourism, resorts, cultural tourism, etc. ", the Minister of Industry and Trade emphasized.

According to Minister Dien, in recent times, Lao Cai province has effectively exploited its potential and advantages. The proportion of industry, trade and services accounts for nearly 80% of the province's GRDP. Export turnover increased dramatically, more than 2 times (the whole country increased by 15.7%); import turnover increased by 50% (the whole country increased by 18.5%).

"Thus, the import volume is not only imported for Lao Cai but also imported for the whole country. That proves that raw materials for production and export to the world through this border gate are increasing, this is a very encouraging sign", the Minister of Industry and Trade affirmed.

However, the Minister also frankly pointed out that, besides the achieved results, the industry and trade sector of the province still has limitations and weaknesses that need to be focused on overcoming.

Although industrial production has a relatively high growth rate, it is not sustainable, especially technology innovation is slow; the internal structure of the industrial sector is still unbalanced (the proportion of processing industry is still low, while the proportion of mining industry is high; mining is high but the added value is small and environmental issues are also challenges).

On the other hand, the border gate economy and import-export activities still depend heavily on the Chinese market and have not expanded to many other markets. Taking advantage of market opening opportunities from free trade agreements, especially new-generation FTAs ​​of which our country is a member, is still limited.

The domestic market has low purchasing power (partly due to the small population size, of which about 66% are ethnic minorities). The distribution system and trade infrastructure are not yet synchronously developed and the scale is still limited.

AWAKENING LOCAL POTENTIAL

Highly appreciating the vision and plans of Lao Cai in the development orientation for the coming time, at the same time, the Ministry of Industry and Trade basically agrees with the tasks and solutions that the locality has proposed, the motto "1 axis, 2 poles, 3 regions, 4 pillars, 5 solutions" is worth considering.

Minister of Industry and Trade Nguyen Hong Dien works with leaders of Lao Cai province.

From the perspective of the industry and trade sector, Minister Nguyen Hong Dien said that Lao Cai province's planning was approved quite early compared to other localities (March 2023). However, the Regional Planning was only approved in May 2024 and many national sectoral plannings were approved at the same time or after the Provincial Planning was approved. Therefore, there will certainly be many sectoral and regional plannings that have not been updated in the Provincial Planning.

Therefore, the province needs to urgently and proactively review the Provincial Planning to adjust and update the Regional Planning, Sectoral Planning, and National Sectoral Planning to be consistent with its own Planning. At the same time, the development of Planning and Land Use Plans, especially the Land Use Plan for the period, must also be consistent.

In particular, it is necessary to urgently implement national sectoral plannings in the fields of energy and minerals in the area. Accordingly, by 2030, the province is planned to have: 28 MW of rooftop solar power; 30 MW of biomass power; 1 MW of waste-to-energy power; 25 small hydropower projects with a total capacity of 223.5 MW; 01 Duc Giang Cogeneration Thermal Power Plant project, capacity of 100 MW; 11 power grid projects; 26 mineral mines; 03 rare earth processing projects.

"Thus, Lao Cai has many conditions to implement projects. If implemented, it will not only increase the capacity of industrial production, trade and services in the area but also awaken the potential of the locality, promoting the development of other economic sectors", Mr. Dien emphasized.

Especially with the mineral industry, it is necessary to pay attention to directing not only exploitation but also focusing on deep processing; must support and facilitate enterprises according to the rolling formula to achieve two goals: both increasing added value for the mineral exploitation and processing industry and creating clean land to attract investment.

Lao Cai needs to promote industrial restructuring towards modernity, large scale, green industry, circularity, sustainable development. Focus on industrial development, deep mineral exploitation and processing, building Lao Cai into a major metallurgical, mechanical and chemical center of the country.

Focus on developing deep processing industry of some agricultural products with strengths of the province (such as tea, cinnamon, medicinal herbs, etc.) to increase export value and meet the requirements of demanding markets (such as the US, Europe).

Pay attention to developing clean energy sources and developing supporting industries associated with the existing advantages of the locality. The province needs to promote the restructuring of the internal industrial sector, especially clean energy, processing and manufacturing, towards promoting groups of industries and industrial products applying high technology, with high added value, clean technology and export production.

Source: Báo Mới