Geographic location:

Cao Bang is located in the northeastern Vietnam, sharing a 322km long borderline with Guang Xi province (China) in the north and northeast, bordering Tuyen Quang and Ha Giang in the west, and Bac Kan and Lang Son in the south. The territory stretches 80km at its length from north to south, so equally, from 23o07’12” – 22o21’21” north latitude (from Trong Con commune in Thach An district to Duc Hanh commune in Bao Lam district), and 170km at its width from east to west, i.e. from 105o16’15” – 106o50’25” east longitude (from Quang Lam commune in Bao Lam district to Ly Quoc commune in Ha Lang district).

Area:

Cao Bang’sarea is 6724.62km2, comprising limestone plateau interspersed with land form mountains with an average elevation of 200m, and elevations between600-1300m abovesea level in areas close totheborder. The topography with rolling mountains covering more than 90% of the province’s area formed up three distinct regions: the eastern region consisting of rocky mountains, the western region of rocky mountains interspersed with land form mountains, the south western region of most thick forests and land form mountains.

Population:

Population: 520,000 people. The number of people in working ageaccounts forover62%, mainly in agricultural sector andmost of them are unskilled workers. The number of workers possessing tertiary education and technical expertise is limited.

The situation ofeconomic development–social

In recent years, Cao Bang has constantly been innovating, developing and and has achieved positive results in many fields such as: average GDP growth rate of over 10%/year, average income per capita of USD 735 /person / year, total import and export turnover of USD250 million/year.

Cao Bang is striving to turn the province into a fairly-developedone in the region with fast and sustainable economic growth while creating strong improvement in the quality, efficiency and competitiveness of each field, each product; harmoniously combine socio-economic development with environmental protection; exploit and fully utilisethe province’s advantages; mobilise every resource for service and industrial development, speeding up economic restructure towards industrialization and modernization; focus on mining and mineral processing.

With the available strength and traditions, Cao Bang always creates favorable conditions and welcomes both domestic and foreign investors.

FDI attraction:

As of year 2013, there were 15 FDI projects in Cao Bang province with total registered capital of USD43.63 million, ranking 56th in the country in terms of registered capital. In 2013, Cao Bang province granted new investment certificate to 01 project with total registered capital of USD09 million.

Infrastructure:

The infrastructure system is being developed with fund from the State budget: roads upgrade, telecommunication network development, electricity supply from the national grid.

Transport: CaoBang hasa complexterrain. The transportsystemconsists of onlyroads withfournational roads: #3, #4A, #34 and#4C. The roads #3 and #4Ahavebeen upgraded. In general, the transportation systemis good enough for the transportof passengers and commodity in the province area.

Electricity: Electricity was supplied to six communes (namely Phuc Hoa, Quang Uyen, Thong Nong) in year 2010 in addition to a national FM broadcast station in Phia Oac (Nguyen Binh district). Around 195/199 communes with 85% of local households have access to national grid.

Water supply: Manyirrigation projectsare under construction and upgrading. The ruralwater supplyprogram is receiving investment.In year 2010,tenwater supply projectswere completed andputinto serviceto supply waterto more than8,500households.

Telecommunication: The telecommunicationnetworkhas been constantlyupgraded and expanded. All of the13districtsand towns of the provinceare undercell phonecoverage. Allintra-provincialtransmission linesuseoptic fibers. The rateof telephone subscription increased sharplyfrom6.5units in2005 to around85unitsper 100inhabitants in 2010.

Potential for development:

Industry: Cao Bang has rich and diverse mineral resources with reserves (56.6 milliontons of iron, 180 milliontons of bauxite, 2.7 milliontonnes of manganese and11.5 thousand tons of tin), thousands of tons oflimestone, lignite, clay andgem, copper, lead mines, etc. whichare theadvantages for development ofminingindustry, mineral processing andbuilding materialproduction. Apart from that, Cao Bang’sriversystemwithsteep slopes is veryfavorable forhydropower development.

Agriculture, forestry and fisheries: Cao Bang has nearly 95,000ha (accounting for 14.12% of the province’s natural land) of land for agricultural production, over 534,000 hectares (over 80%) of forest land, and over 400 hectares for aquaculture.

Tradeand services: Sharing over 322km of border line with China with many passings, border markets along the scenic, historical-cultural, Cao Bang are the advantages for the development of trade and services.

Tourism: Apart from a big number of landscapes such as Ban Gioc Waterfall, Nguom Ngao Cave, 1931m-high Phia Oac Mountain Peak, ect.,Cao Bang has many historic monuments like Pac Bo site where President Ho Chi Minh first stepped his foot after 30 years travelling abroad,TranHung DaoForest where the Vietnam’s first Propaganda Liberation ArmyTeam was established. All these tourist attractions form up a potential tourism resource for the province.

Investment incentives

Land incentives:

– Free land rental in eleven (11) years applicable to all projects without discrimination of investment sectors;

– Free land rental in fifteen (15) years applicable to projects included in the list of specially encouraged investment sectors;

– Free land rental applicable to: non-commercial construction projects of flats for workers; construction projects of commercial-purpose public works (socialized projects) in sectors of education, healthcare, culture and sports;

Corporate income tax (CIT):

– Tax holiday for eleven (11) years from the first profit-making year and a 50% reduction in the applicable rate for the following 9 years. These rates are offered to businesses newly established from investment projects operating in the province area;

– CIT rate of 10% is offered for a period of fifteen (15 ) years

Import & export tax: Goods that are included in the 18 groups of goods stipulated in Article 16 of Decree 149/2005/ND-CP dated December 6^th, 2005shall be exempt from import &exportduties.

Invesment credit incentives offered by the State: Upon satisfying the conditions stipulated inDecree No.151/2006/ND-CPdated Dec.20^th,2006 of the Governmenton “investment creditandexport creditof the Government”, investment projects in Cao Bang province area shall be entitled tofollowingincentives: investment creditof the State(investment loans, post-investmentsupport: investment credit guarantee); export credit(export loans, exportcredit guarantee, bid guaranteeandcontract performance guarantee), loanguarantee, loan repaymentandhandling of export credit and investmentcredit risks.

Support to infrastructure investment: The construction of treated water supply system, waste water sewerage system, roads, electricity distribution lines to the border of the IPs, EZs shall be funded by the State budget.

Industrial parks and economic zones in the province:

De Tham industrial park:

Area: 92.2 hectares;

Expected number of employees: 3,700;

The Industrial park (IP) is under site clearance and infrastructure construction process,done by De Tham Infrastructure Development Company established by the provincial People’s Committee(PPC). This IP isconsidered a key areafor economic development of the province, including following types of industry:

– Precision engineering; electronics; information technology; consumer goods manufacture (textiles, footwear, ceramics etc).

– Other industriessuch as: high-quality constructionmaterials; packaging materials; scooterparts assembling and manufacturing etc.

– Agriculturaland forestryproducts processing.

Mien Dong I Industrial Cluster:

Area: 86 hectares;

Location: Ta Lungtown, Phuc Hoadistrict;

This IC is intended for following industries:

– Precision engineering; electronics;information technology;consumer goods manufacture(textiles, footwear, ceramics etc.)

–Other industriessuch as:high-quality constructionmaterials; packaging materials; scooterpartsassemblingand manufacturing etc.;

– Agriculturaland forestryproducts processing.

Projectscalling for investment

A mechanical plant:

Location: Industrial Park, Cao Bang townorTa Lungtownship(Phuc Hoa district).

Area: 5 hectares

Infrastructure conditions: Convenient transportation(located next toNational Road #3),communications, water supply, power supply.

Preferential policies: tax incentivesunder the Investment Lawandother incentivesunder Decision 1498/2007/QD-UBNDdated17/8/2007 ofCao BangPeople’s Committee.

Agarment factory:

Location: Industrial Park, Cao Bang townorTa Lungtownship(Phuc Hoa district).

Area: 9 hectares

Infrastructure conditions: Convenient transportation(located next toNational Road #3),communications, water supply, power supply.

Preferential policies: tax incentivesunder the Investment Lawandother incentives under Decision 1498/2007/QD-UBNDdated17/8/2007 ofCao Bang People’s Committee.

An electronics telecommunicationplant:

Location: Industrial Park, Cao Bang townortownshipTa Lung(Phuc Hoa district).

Area: 6 hectares

Infrastructure conditions: Convenient transportation(located next to National Road #3), communications, water supply, power supply.

Preferential policies: tax incentivesunder the Investment Lawandother incentives under Decision 1498/2007/QD-UBNDdated17/8/2007 ofCao Bang People’s Committee.

Infrastructure development in De Tham new urban area:

Location: Đề Thám New Urban Area, Cao Bằng town(7km from the centre of Cao Bang town).

Area: 850 hectares

Infrastructure conditions: National Road #3goes throughthe project areaover a length of 7.2km. Bang River flows throughthe project area.

Preferential policies: tax incentivesunder the Investment Lawandother incentives under Decision 1498/2007/QD-UBNDdated17/8/2007 ofCao Bang People’s Committee.

7. DIEN BIEN PROVINCE

General Information:

Geography location:

Dien Bien is a border mountainous province in the North-West of the country. It is situated from the latitude 20⁰54 to 22⁰33 North and from the longtitude 102⁰10’-103⁰36’ East. It is bordered by Lai Chau province to the North, Son La province to the East and Northeast, Yunnan province (China) to Northwest, Laos PDR to the West and Southwest borders Lai Chau province in the North, Son La province in the East and Northeast, Yunnan province (China) in the West, Laos Republic in the West and Southwest. It is about 500km from Hanoi Capital.

Area: 9,562.9 km2.

The province comprises 9 administrative units: one city (Dien Bien Phu), one provincial town (Muong Lay) , 7 districts (Dien Bien, Dien Bien Dong, Muong Ang, Muong Cha, muong Nhe, Tua Chua and Tuan Giao).

Population:

The current population of the province is over 52 thousand, including 19 ethnic groups. The average population density is 52 people/sq.km. This is one of the provinces with the lowest population density in the country, much lower than the average population density of the Northwest region.

The number of people in the working age is 286,000, accounting for 57% of the population. Currently, the number of employees working in the sector of national economy is 272 thousand. Most of them are farmers and forest workers (80.6%). The number of industrial and construction workers accounts for only 6.3%, service sector workers13.1%. The number of unemployed workers is stillbig (around 14 thousand people), accounting for 4.9% of the total number ofworkers.

Socio-economic development situation:

In 2013 the economic growth of the province reached 8.55% in which agriculture-forestry raised by 4.95%, industry and construction 5.56%, service sector 11.04% compared with 2012. GDP per capita is estimated to value VND20.41 million/person/year, up by 16.2% compared with 2012. Agricultural sector continues to be maintained and developed. Perennial industrial trees: rubber and coffee’s area was expanded as planned.

FDI attraction:

Dien Bien had 01 valid foreign investment project with total registered capital of USD129,000. So far there have been two businesses operating in the province: Vietnam-China Animal Feed Joint Venture and Domine Kochay JSC. At Vietnam-China Animal Feed Joint Venture, foreign partner has already transfered all shares to Vietnamese partners; the other company was granted with investment certificate in 2011 and is implementing the next steps.

Infrastructure:

Road network:The distance fromthe city ofDien Bien Phuto Hanoi Capital is474kmalong National Road279with a turnontoNational Road 6.

National Road 12: From Dien Bien Phu City to Ma Lu Thang border gate (Lai Chau): 195 km

National 279 (117 km in length): connecting Tuan Giao to Dien Bien Phu city and running through to Tay Trang border gate.

Air transport: there is an airport in the city of Dien Bien Phuto provide service for Hanoi – Dien Bien Phu – Vientiane – Luang Phabang route.

Potential for development:

Mineral: Mineral resources comprise various types such as: mineral water, fat coal, limestone, slate, granite, iron oreandnon-ferrous metals, etc. with small reserves and scatter throughout the province. Up to now, 32 iron ore and metal mines, 14 coal minesare detected, of which 2 mines are believed to havereserves of C1 quality, and many mines of construction material minerals, mineral water etc, but its quality and reserves have not been fully explored and evaluated.

Hydropower: Surface water source in Dien Bien province mainly come from three rivers, namely Da river, Ma river and a branch of Mekong river. Due to steep slope, the  river flows very fast, creating huge potential for hydropower development. Small hydropower plants can be built with a total capacityofabout432MW((7 plants were built and put into operation; 12 projects were granted with investment certificates and are under construction; 33 other projects are calling for investment).

Agriculture-forestry-fishery: Dien Bien has a total natural area of 955,409 hectares. Most of the area is onhigh steep with thin layers. More than 70% of provincial land area has the slope of over 25 degree which is suitable for forestry development and forest regeneration. The land area for agricultural and forest cultivation is 479,817 hectares, in which agricultural land is 111,749 hectares, forest land 367,398 hectares; aquaculture area is 670 hectares.

Tourism resources: The province has great potentiality for developing historical, human-cultureand nature tourism.

– Historical and human-culture tourism: Dien Bien province has Dien Bien Phu historical monument cluster, the traces of the famous battle between French – Vietnam army which made the world shocked. Currently this historical cluster is being zoned for conservation and recovery by Vietnamese government. These are extremely valuable assetsfor developing historical tourism. Besides, Dien Bien has many historical sites such as: Muong Luan Tower,a cultural construction from the 16th century, Van Tam citadel, Ban Phu citadel, Hoang Cong Chat Temple ect…

– Dien Bien has a multi-ethnic culture which has great significance for tourism (There are 19 ethnic groups living in Dien Bien). Each people has its own unique culture, including tangible and intangible culture; the traditional social and cultural institutions of each people such as: Muong commune of Thai people based on public land, institutions oftheH’mongfamily…; customary in production, daily life and in religious activities, festivals of each ethnic, along with special typical dishes of the Northwest… are attractive humanistic tourism resources for tourists, especially international visitors. In addition, the hospitality and enthusiasm of Dien Bien people is also a solid foundation for tourism development.

– Nature tourism: Dien Bien has many famous scenic spots such as Pa Khoang Lake, primitive forest in Muong Nhe, Muong Toong, Muong Phang Forest, Pa Thom cave, Tham Pua cave, waterfalls, the spectacular natural landscape, and Son La hydropower lake in near future,… These are ideal conditions for Dien Bien to develop attractive types of tourism.

Investment attraction orientation:

– Forestry development, industrial trees cultivation, cattle husbandry;

– High quality rice production;

– Livestock farming;

– Rapid tourism and service development;

– Development of hydropower development and other types of power.

Dien Bien also shares border with the Democratic Republic of Laos and China with such passings asTay Trang,which could become an international border gate in the future; PaThom, MuongLoi, ApaChai etc.. These are important border gates that help Dien Bien develop economy and enhance trading with other countries.

Economic zones and industrial parks in the province:

According to theplanning up to2015 andorientationup to 2020, Dien Bien will establish anindustrial parkin the city ofDien Bien Phu(the Southeast Industrial park ofDien Bien Phu city) andsevenindustrial clusters: one in thewest of Dien Bien Phu city; one in theeastof Dien Biendistrict; onein the east ofTuan Giao district; one in thesouth ofTua Chua district; one inMuong Laytown; one in Muong Chaand theNaHaiindustrial cluster inDien Bien district).

Detailed plannings have been done for 01 industrial park, 01 cluster (Na Hai); the industrial cluster in the east ofTuan Giao district is under the planning process.

Preferentialinvestmentpolicies:

Dien Bien province (Dien Bien Phu city and all districts) are classified as an area with special socio-economic conditions. Hence, investors in this province are entitled to the best incentives and supports according to the2005Law on Investment and other related legal documents such as: corporate income tax, import tax incentives, big depreciation forfixed assets; land use incentives; investment credit and export credit; support for technology transfer, jobtraining, infrastructure development, compensationfor site clearance (Dien Bien province commits to withdraw land, compensate and carry out site clearance before handing land over or leasing land to investors). The province developes infrastructure up to the border of industrial parks and inside economic zones. Investors are also entitled to extra incentives for some specific investment sectors such as: agriculture,ruraldevelopment, forestry, rubber tree farming, etc.

Investment procedures: Investors shall receive guidance on investment procedures and be given priority in administrative procedures handling. Investment registration procedure shall not exceed 7 days. Investment certificate issuance shall not exceed 20 days under the one-stop-servicemechanism. Investors only need to work with Dien Bien Department of Planning and Investment to have investment certificate.

Projectscalling for investment:

– Upgrading of Dien Bien Phu Airport (in Dien Bien Phu City)

– Restoration of historical monuments of Dien Bien Phu (Dien Phu City).

– Business operation in the economic zone of Tay Trang international border gate and HuổiPuoc border gate zone (Dien Bien district. Total area: 90 hectares).

– Collection and treatment of waste in Dien Bien Phu City, Muong Lay town and other districts (capacity:1,000m3/day).

– Mining and processing of ashlar (10.000m2/ year).

– Production of Dien Bien special rice (Dien Bien basin, 5 thousand tons/year).

– Development of Huổi Pha lake Ecological Tourism Zone (investment items: Golf course, Water Park, man-madesea, luxury hotel).

# LIST OF PROJECTS OF CALLING FOR INVESTMENT INTO PROVINCES