Yen Bai ranks 49th among localities in terms of foreign direct investment (FDI) attraction. According to data by the province’s Department of Planning and Investment, as of October 20, Yen Bai had 23 active FDI projects, with combined registered capital of $135.5 million.

In 2014, only one new investment certificate has been granted to South Korea-based Unico Global Inc. to build a $12 million factory producing garments for export. So far this year the province has approved the investment expansion of Yen Phu Investment and Minerals Exploitation JSC and a Chinese company for their nickel and lead mining and refining project.

Doan Huu Phung, deputy director of the province’s Department of Planning and Investment, said Yen Bai claimed so much potential. The province is at the centre of the northern mountainous and highland area, a stop in many roads, railroads and waterways connecting Hanoi to the tourism hotspot of Lao Cai and part of the Kunming-Lao Cai-Hanoi-Haiphong economic corridor. Particularly, the inauguration of the Hanoi-Lao Cai expressway in September has facilitated investments in the province by shortening travel time from Hanoi to Yen Bai to just 1.5 hours.

However, “undeveloped infrastructure, difficult transportation and unnecessarily complicated administrative procedures are some of the main reasons the province has been having trouble attracting FDI,” Phung said.

To attract more FDI, Yen Bai has focused on three economic breakthroughts, including services, transport infrastructure and qualified human resources development.

been completing infrastructure at its industrial parks (IPs) and clusters and training its human resources to meet the demand of investors.                                          

In 2010-2015, Yen Bai plans to have five IPs with combined area of 1,182 hectares and 19 industrial and craft clusters with 1,100 hectares. The province has been clearing land and building transport, electricity, water supply and waste processing infrastructure for some industrial parks and clusters, ready to welcome investors. Examples include the 400-hectare IP in the south of the province, the 120-hectare Au Lau IP, the 112-hectare Minh Quan IP, the Bac Van Yen IP and the Mong Son IP. 

The province has undertaken several large projects, including the World Bank-funded $33.4 million Northern Mountainous Urban Upgrading Programme’s Yen Bai sector and the Dam Hau Golf Course in Tran Yen district with investment capital for the first phase amounting to $38.1 million.        

In addition, Yen Bai offers multiple incentives to investors. For example, the province has issued preferential land and water surface leasing price plans and pledges to support firms in land clearance and preparation, infrastructure construction, local labour training and investment and trade promotion.

To encourage foreign investors to invest in IPs, Yen Bai provides a series of incentives including low land rents, land clearance and preparation  and lending interest rate subsidies.   

The province has also been simplifying administrative procedures to quicken the licensing process.

“We pledge to draft and complete policies to attract investment. We will also help investors complete administrative procedures so they can carry out their projects as quickly as possible,” Phung said. The province has asked the government to give a helping hand in building infrastructure, especially transport systems to attract more foreign investors.