Central Highlands Logistics is a prominent destination for many domestic businesses

At the investment promotion conference in the Central Highlands region held on the afternoon of April 4, investors expressed their desire to pour capital into high-tech agricultural, green economy and logistics projects. However, they also proposed the need to improve processing capacity and infrastructure here to attract effective investment.

The Central Highlands region includes 5 provinces: Lam Dong, Dak Nong, Dak Lak, Gia Lai and Kon Tum. This place possesses much potential for developing agricultural raw materials, medicinal materials, eco-tourism and minerals. Therefore, this is considered an attractive destination for investors in the fields of high-tech agriculture, green economy and logistics.

1. Central Highlands Potential and Business Orientation

High-tech agriculture applies science and technology to production, helping to improve productivity, product quality and minimize impact on the environment. Green economy is an economic development model based on the effective use of natural resources and environmental protection. Logistics is a service industry that supports the transportation, storage and distribution of goods.

Attracting investment in these fields will contribute to promoting socio-economic development of the Central Highlands region, creating many jobs and improving people’s lives.

However, to attract investment effectively, the Central Highlands provinces need to improve processing capacity and infrastructure. Improving processing capacity will help increase the value of agricultural products, creating many high-value products for export. Transport infrastructure needs to be improved to create favorable conditions for transporting goods and attracting tourism.

With available potential and the interest of investors, the Central Highlands can become a center for developing high-tech agriculture, green economy and logistics in Vietnam.

Ms. Le Thi Giau, President of Binh Tay Food Company, said that the company is about to put into operation a vermicelli factory in Dak Nong. The factory has export orders worth tens of millions of USD for this year.

Ms. Giau highly appreciates the development potential of the dong vermicelli industry in Dak Nong, because this place owns a large dong raw material area. The enterprise hopes to consume about 3,000 tons of arrowroot powder each year for production and export.

Mr. Dang Dinh Long, CEO of Mega A trade and investment, emphasized the importance of creating growing area codes and packing house codes for agricultural products and medicinal herbs. This is a key factor to meet the increasingly strict import standards of the international market.

Enterprises investing in vermicelli production in Dak Nong promises to promote the local agricultural industry to develop in a modern and sustainable direction, while adding value to agricultural products.

Forecast:

• The vermicelli industry in Dak Nong will have strong development in the near future.
• The demand for arrowroot raw materials will increase, motivating local people to expand the arrowroot growing area.
• Applying science and technology to vermicelli production will help improve product quality and increase competitiveness in the international market.

Propose:

• Local authorities need to have policies to support businesses investing in the vermicelli industry.
• Enhance training in techniques for growing and caring for arrowroot trees for people.
• Building a brand for Dak Nong arrowroot vermicelli to promote the product to domestic and foreign markets.

Mega A Logistics enterprise has proposed to build a cross-border logistics center in Kon Tum province for the purpose of transshipping goods between Laos and Vietnam. Mr. Dang Dinh Long, CEO of Mega A, wishes to invest in this project.

Specifically, Mr. Long wants to build a 100-hectare cargo offloading yard and two bonded warehouses with a storage capacity of 50,000 to 100,000 tons of cassava chips in Kon Tum and Gia Lai.

In addition, Mr. Long is also looking for a land area of 200 to 250 hectares to build a centralized agricultural market and free trade zone to solve logistics and goods circulation problems for the region.

This project promises to bring many benefits to Kon Tum province, including:

• Strengthen trade connections between Vietnam and Laos.
• Attract investment in logistics and trade.
• Create many jobs for local people.
• Contribute to promoting socio-economic development of Kon Tum province.

However, there are still many limitations that relevant ministries and businesses need to overcome.

2. Cooperation between Ho Chi Minh City and the Central Highlands in the field of agriculture is still limited

• Lack of agricultural database system: The Central Highlands region does not have a complete data system on growing areas, output, and quality of agricultural products. This makes it difficult to connect between Ho Chi Minh City businesses and farmers in the Central Highlands.
• Weak logistics chain: Transport infrastructure connecting the Central Highlands and Ho Chi Minh City is limited, transportation costs are high. The system of cold storage, storage and processing of agricultural products is not yet developed.
• Low processing capacity: The capacity to preserve and process agricultural products in the Central Highlands is still low, leading to large losses and low product value.

To address these limitations, the following solutions need to be implemented:

• Building an agricultural database: The Central Highlands provinces need to build a database on growing areas, output, and quality of agricultural products. Ho Chi Minh City needs technical and financial support to build a common data system.
• Developing logistics chains: Need to invest in transportation infrastructure, cold storage, storage and processing of agricultural products.
• Improve processing capacity: Need to attract investment in agricultural product processing projects and train human resources for the processing industry.

In addition, investors are also interested in tourism and green economy in the Central Highlands:

The Central Highlands has rich forest resources: Forest coverage reaches 51.34%, this is a great advantage for developing eco-tourism and green economy.
Ho Chi Minh City has a great need for eco-tourism: The eco-tourism demand of Ho Chi Minh City people is increasing, the Central Highlands can meet this need.

Vice Chairman of Ho Chi Minh City People’s Committee Vo Van Hoan assessed that the Central Highlands has a huge advantage in the carbon credit market:

• Central Highlands forests have a large capacity to absorb CO2: This is an opportunity to develop a green economy through selling carbon credits.
• Ho Chi Minh City has great demand for carbon credits: Ho Chi Minh City businesses can buy carbon credits from the Central Highlands to compensate for their CO2 emissions.

With cooperation to develop the fields of agriculture, tourism and green economy, Ho Chi Minh City and the Central Highlands can bring benefits to both sides:

• Ho Chi Minh City: Has a stable supply of agricultural products, reasonable prices, and has an attractive ecotourism destination.
• Central Highlands: Has a large consumer market for agricultural products, attracting investment in the fields of tourism, green economy, and creating jobs for people.

3. Central Highlands Promotes Calling for Investment

The Central Highlands is calling for investment in the fields of eco-tourism, high-tech agriculture and urban – trade – service infrastructure with a total capital of nearly 82,000 billion VND.

Some specific projects:

• Kon Tum: Inviting investment in 3 tourist areas associated with mud bath experiences, waterfall visits, and Ngoc Linh ginseng garden, each project has a scale of 30 to 50 hectares.
• Dak Lak: Looking for investors for a solid waste treatment plant, a financial, commercial and service area and a golf course – Ea Kao lake villa complex.
• Dak Nong: Calling for investment in bauxite mining and alumina production. This province has bauxite reserves of about 5 billion tons, accounting for two-thirds of the country, and is expected to become a non-ferrous metallurgy center.

However, to attract investment effectively, the Central Highlands needs:

Improving the investment environment: It is necessary to create an open and favorable investment environment for investors.

• Improve competitiveness: It is necessary to improve the competitiveness of investment projects to attract large investors.
• Human resource development: Need to train high quality human resources to meet the needs of investors.

With available potential and the efforts of local authorities, the Central Highlands can attract effective investment and sustainable socio-economic development.

In addition, the following points should be noted:

• Efficiency of investment projects: It is necessary to ensure that investment projects bring high economic and social efficiency.
• Environmental protection: It is necessary to protect the environment during the implementation of investment projects.
• Benefits for local people: It is necessary to ensure that local people benefit from investment projects.

By attracting investment in the fields of ecotourism, high-tech agriculture and infrastructure, the Central Highlands can bring benefits to both the environment and the economy:

Environment: Developing ecotourism will help protect the environment and natural landscape. High-tech agriculture will help minimize negative impacts on the environment.

• Economy: Attracting investment will help create jobs, increase people’s income and promote the region’s socio-economic development.
  Ho Chi Minh City and the Central Highlands cooperate to develop many fields

Ho Chi Minh City and the Central Highlands provinces are cooperating to develop in many fields, and at a recent conference, localities called for investment in projects in the fields of:

• Transport infrastructure: Tan Phu – Bao Loc and Bao Loc – Lien Khuong Expressway (Lam Dong) are key projects.
• High-tech agriculture: Developing agricultural production models applying advanced science and technology.
• Production and processing: Enhance the value of agricultural products through deep processing.
• Ecotourism: Promoting the tourism potential of the Central Highlands with majestic and unique natural landscapes.
• Service trade: Expand consumption markets for Central Highlands products and attract tourists.
• Improve the efficiency of goods transportation between the Central Highlands and Ho Chi Minh City.
• Health: Improve the quality of health services for people in the Central Highlands.