Potential
Lang Son has a strategic position with plenty of opprotuniy and potential for economic and social development. Since the early days of the state’s open policy in 1990s, Lang Son has become an important place for goods to be transported between Vietnam and China. There are thousands of businesses from both countries taking part in import-export activities, making the province a busy place to do business.
The authorities have created a preferential legal framework for attracting international and domestic businesses to invest in the province and improve the effectiveness of border economic zones.
There has been a significant surge in export turnover, from US$500 million in 2001 to US$1,498 million in 2008 and US$980 million in the first 9 months of 2009, despite the global economic downturn.
Through Lang Son Vietnam exports cassava, cashew nuts, bananas, dragon fruit, aquatic products and iron ore and it imports machinery and industrial materials. Various business methods are used at border gates to keep the border economy purring along to meet production and capital construction demands.
Judging from its good infrastructure and geological position, the Prime Minister has recently approved a project to upgrade the 394-square kilometre Dong Dang – Lang Son border economic zone to become an economic region focusing on urban, industrial and commercial development.
In an investment promotion conference held by Lang Son province in May 2009, 10 projects with a total capital of over US$10 billion were licensed to ministries, central agencies, corporations and businesses and seven of the investors have already poured capital into their projects.
Challenges
In 1997, The PM signed a decision allowing Lang Son to use 50 percent of import and export taxes to improve the infrastructure and develop border economic zones.
However, these zones have not seen much shining since 2004. Meanwhile, 70 percent of the provincial fund is from import and export taxes.
Due to a shortage of funding, many projects have been cancelled or delayed, and this has adversely affected the investment environment in border economic zones.
To iron out snags, Lang Son province has come up with a host of measures to promote trade and services while trying to attract more investment.
Up to September 2009, only 29 projects were licensed with a total capital of VND2,875 billion and local businesses remained under heavy pressure to sell their products at cheap prices.
In the meantime, Lang Son still has to deal with other problems such as trade fraud, smuggling, counterfeit money and woman and child trafficking.
In an assessment report on the development of border economic zones, Phung Thanh Kiem, secretary of the Lang Son Provincial Party Committee expressed hope that the government will give a helping hand to jump-starting projects in border economic zones, which are considered the key to the successful implementation of Lang Son's socio-economic development plan.