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Overview of Province

Name, Geographic location, Map

Dak Lak province is situated in the center of the Central Highlands region, within the coordinates range of Longitude E 107028'57"- 108059'37" and Latitude N 1209'45" – 13025'06".

It’s bordered by:

+ Khanh Hoa and Phu Yen provinces to the East;

+ Gia Lai province to the North;

+ Lam Dong province to the South;

+ Dak Nong province and Cambodia to the West.

The province shares a 70km border line with Cambodia, with the Highway No. 14 running along, which provides favourable conditions for economic development in the border areas in combination with national security.

Buon Ma Thuot city is the political, socio-economic, and cultural hub of the province as well as of the Central Highlands region.

- Terrain: is a huge plateau in the west and at the end of the Annamite range, which is quite flat, wavy and interposed with lowlands along the main rivers. The altitude is reducing from southeast to the northwest, approximately between 400 m – 800 m above sea level.

Manpower

Population: 1.8 million
Labour force: 1,128,108 persons
Trained labour force: 400,000 persons.

Economic figures in 2016

- Gross Regional Domestic Products (GRDP): VND 68,908 billion, increasing 13,2% against 2015.

- Economic structure: Agriculture - forestry – fisheries: 44,81%; Industry – Construction: 14,48%; services: 38,68%. Product taxes (product subsidies deducted): 2,03%.

- Import-export turnover: USD 550 million.

- Import turnover: USD 16 million.

- Per capita income: VND 36.7 million.

- Mobilized investment capital from society: VND 17,009 billion.

- Total inventory turnover: VND 53,050 billion.

Provincial prominent achievements between 2012 – 2016: Provincial Competitiveness Index (PCI):

	2012	2013	2014	2015	2016
Rank	36	38	30	23	28
Score	55.94	57.13	58.76	59	58.62

Investment/trade:

- FDI: 12 projects with total registered budget of USD 118.89 million.

- Export: coffee, rubber, pepper, bee honey, cocoa, of which coffee makes up 80% of the total turnover.

- Import: Materials, fuels for agricultural production such as: fertilizers, chemicals, PE plastic particles...

Infrastructure and connectivity

- in-land roads: Highway No.14 to Ho Chi Minh city (350km apart from HCM city), to Gia Lai province (190km apart from Pleiku city), and connected with the Ho Chi Minh Highway at Kon Tum province, Highway No. 26 Khanh Hoa province (180km apart from Nha Trang city); Highway No. 27 to Lam Dong province (185km apart from Da Lat city) and Highway No.29 to Phu Yen province (185 km).

- Airway: Buon Ma Thuot airport is just 7 km from Buon Ma Thuot city to the southeast, with direct flights to Hanoi, Ho Chi Minh city, Da Nang, Vinh, Hai Phong, Phu Quoc, meeting travelling demand of tourists and investors.

- Power: National power grid has reached 100% of the districts; electricity supply is sufficient for living and production demand of local people and enterprises.

- Water: The centered drinking water supply systems are available in Buon Ma Thuot city, Buon Ho town and district centers.

- Telecommunication: The telephone system covers the entire province. Internet connection is also available in all communes, districts.

Living condition:

As being situated in the center of the Central Highlands region, it’s convenient for Dak Lak in exchanges of goods. The province has been assessed in recent years as the province with the highest purchasing power in the region. Supermarkets, trading malls, markets and banks in the province basically fulfill the purchasing demand of local inhabitants, tourists and investors in the province.

2. Reasons for investment in the province:

Dak Lak province possesses an important strategic location in terms of both economic and social significance, with convenient road systems connecting Central Highlands provinces with Central Coastal area, Eastern South and Ho Chi Minh city. This advantage plus diversified natural resources, young human resource make Dak Lak become an attractive destination of national and international investors.

Dak Lak has the fourth largest natural area in the country, including approx. 5,400 km² of agricultural land. Most of this is the fertile basaltic soil, very suitable for growing economic valued crops with high annual production like coffee, rubber, pepper, avocado, durian, mango … Most outstandingly, the Buon Ma Thuot coffee has become a worldwide famous brand name. A part from these products, Dak Lak is also strong in producing hybrid maize, bee honey, cassava, sugar cane. The province is now focusing on development of high-tech agriculture to mitigate adverse impacts of climate change as well as to optimize the agricultural productivity thanks to application of modern technologies.

- Forest resource: Dak Lak has the largest forest cover and timber stock in the nation. There is over 600,000ha of forest land in the province. Timber stock reaches more than 50 million m3 with valuable species, an advantage for manufacturing and exporting wooden products.

- Water surface: there are large lakes and various streams, rivers such as Lak, Ea Sup, Dak Minh, Ea Kao...The total water surface area of 50.000 ha is favourable for development of aquaculture.

- Mineral reserves: The province has various types of minerals with different reserves, some have been identified among others such as kaolin with about 60 million ton reserves in M’Drak district, Buon Ma Thuot city; brick clay in districts of Krong Ana, M’Drak and others. In addition, other minerals like gold (Ea Kar), lead (Ea H’leo), phosphorous (Buon Don), peat coal (Cu M’Gar), precious stone (Opan, Jectit), devitrified stone, building stone, sand … are found in many places in the province, convenient for development of mineral mining, manufacturing.

- Tourism: Dak Lak has strength in tourism with numerous sites, places which can be explored for landscape, envirnmental, cultural and eco-tourism such as Lak lake, Dray Nur waterfall, Buon Don tourist site, Kotam cultural place, eco-tourist site in Ea Kao gofl court... Especially, Dak lak is one of the cradle for the Cultural Space of Gong in the Central Highlands, which has been recognized by UNESCO as Masterpieces of the Oral and Intangible Cultural Heritage of Humanity. The Buon Ma Thuot Coffee Festival is organized every two years, attracting tens of thousands of tourists each time.

- Energy: Dak Lak is among the places identified as the high potential for solar power in the world solar hear map, concentrated in the two districts of Ea Sup and Buon Don. Average sunny hours per year is from 2,000 – 2,600. Wind power is also one of the province’s strengths with total planned capacity of 1,452MW, mostly in districts of Ea H’leo, Krong Nang, Krong Buk and Buon Ho town.

- Industrial complexes, parks: The province now has 1 industrial park and 07 industrial complexes under operation; plus 01 industrial park and 08 industrial complexes in the stage of investment preparation, which can meet land use requirement of investors.

3. Opportunities for investment - business

Provincial economic development plan

Restructuring the economy, strengthening investment promotion, enhancing the effectiveness and competitiveness of the economy. Ensuring the stability and promoting economic growth, implementing social welfares, developing culture, environmental protection. Coping effectively with climate change, disaster risk management, improving efficiency and effectiveness of state governance; assuring political and social security; enhancing the effectiveness of public administration reform, investment promotion, efficiency of governance system (according to Report on implementation of socio-economic development plan in 2016 and Plan 2017)

Key sectors promoted for investments (max. 5)

- Agriculture with target at high-tech agriculture, large scope, centered production, modernization and industrialization. In livestock sector, big projects on industrialized animal husbandry in combination with feed manufacturing are encouraged.

- Industry with priorities for manufacturing of agro-forestry-fishery products, renewable energy, industries for serving rural agriculture.

- Tourism with focus on construction of high-end resorts, eco-tourist places, hotels of 3-5 stars.

- Services with emphasis on attracting investment in building and operating supermarkets, shopping malls.

- Education – training aiming at construction of schools, training centers at regional level, improving infrastructure, teaching facilities, equipment, developing pools of trainers, teacher of high professional level.

Major areas promoted for investment:

Buon Ma Thuot city, Cu M’gar district, Buon Don district, Buon Ho town, Lak district, Krong Bong district, Ea H’leo district.

Investment incentives of the province

Land

Investors are entitled to the investment incentives of Dak Lak province stipulated in Decision No. 01/2016/QD-UBND dated 06/01/2016 with regards to exemption, reduction of land lease for the socialized projects on education – training, vocational training, health care, culture, sports, environment, judicial assessment in the province, particularly:

Place	Land lease fee
Wards of Buon Ma Thuot city	Exempted in 25 years and reduced 70% in the remaining time
Communes of Buon Ma Thuot city	Exempted in 25 years and reduced 85% in the remaining time
Districts, Buon Ho town	Exempted 100%

Exemption of land lease and water surface lease since the date the project is put in operation
Place	Investment Sector	Exempted year
Buon Ma Thuot city	Not under incentive sectors	7
	Incentive sector	11
	Extremely incentive sector	15
Districts, Buon Ho town	Not under incentive sectors	11
	Incentive sector	15
	Extremely incentive sector	Entire leasing time

Taxes

Exemption, reduction of corporate income tax and import-export duties as regulated by the Law on corporate income tax and Law of Import, export duties.

Place	Exemption, reduction	Tax rate
Districts, Buon Ho town	Exempted in 04 first years since taxable incomes occur, reduced 50% in 09 following years	Applied 10% rate in 15 years
Buon Ma Thuot city	Exempted in 02 first years since taxable incomes occur, reduced 50% in 04 following years	Applied 17% rate in 15 years
Import duty
Exempted for equipment, materials, transporting vehicles and goods imported for implementing the projects in Dak Lak.

4. Investment/business environment

The provincial leaders are well aware that a part from the potentials and incentives, the transparency, accountability of the provincial authorities, public agencies also determine the success of investment projects. The province has therefore issued various mechanisms, policies and created legal corridor and clear environment for investors, also tried to improve the public administration to make a step forward in public service provision and call for investments.

Regulation on investment/business

Procedures on implementing investment projects in Dak Lak province are in accordance with the Decision No. 32/2016/QD-UBND dated 7/10/2016 by Dak Lak People’s Committee.

Contact of the province’s for trade, investment and tourism promotion