Review of Dak Lak

7/27/2019 Review of Dak Lak

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OPEN LETTER

DAK LAK - POTENTIALS AND GROWTH

After nearly 20 years of going into stabilization and developing (1990-2007), Dak

Lak Provinces economy has grown strongly in terms of scale, speed and quality. The

multi-sector economy has developed in terms of merchandise production, enablingthe province to exploit its resources more effectively. Economic exchange andinvestment cooperation locally and overseas have been continuously expanded.

In the overall context of the country and on the basis of its potentials and strengths,

Dak Lak Province will opt for development orientations under which it aims to build

up an open-door economy in adherence to local markets, focus on making effectiveuse of its potentials and advantages to serve for national industrialization and

modernization and rapidly approach the international market and strengthen

investment cooperation in the provinces advantageous fields.

With the development orientations specified, Dak Lak Province aims to create the

best conditions to attract direct investment capital by ensuring its full completion ofthe States legal regulations and offering specific incentives to all organizations and

individuals who make their cash injection into Dak Lak in accordance with ForeignInvestment Law and Local Investment Encouragement Law.

DAK LAK INVESTMENT PROSPECTS

OVERVIEW

1. Natural features

1.1. Geographical location

Dak Lak Province lies in the Central Highlands of Vietnam, bordering on Gia Lai

Province to the north, Lam Dong Province to the south, Phu Yen Province and KhanhHoa Province to the east and Cambodia and Dak Nong Province to the west.

Dak Lak Province has a natural area of 13,125 square kilometres and shares a

borderline of 70 kilometres with Cambodia with National Road 14C running along the

border of the two countries, which is well suited to development of the bordereconomy in combination with national defence.

1.2. Terrain

Dak Lak province mostly covers the western part of Truong Son mountain range withits terrain gradually low from south-east to north-west. Dak Lak features a diverseterrain, representing a mixture of plains and valleys. The total province hosts two big

plateaus: Buon Ma Thuot Plateau and M Drak Plateau.

1.3. Climate

Generally, Dak Lak Province offers two obvious seasons. The rainy season lasts from

May to October with the appearance of southwest wind. J uly, August and September


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relatively intricate lake and river network. Therefore, many localities in the province,

especially those lying along the banks of Krong Ana River at the districts of KrongAna, Krong Pac, Lak, etc., are able to capitalize on water sources for manufacturing

and daily activities.

2.3. Forest resources

Dak Lak forest land records 614,446 hectares, of which natural forest accounts for595,088 hectares and artificial forest 19,358 hectares. Forest coverage hits 46.81% .

Dak Lak forest is allocated evenly across districts, especially at the border corridor

with Cambodia. Dak Lak forest proves to be profuse and diverse and has a three-layer structure: protective trees; many special species of trees yielding both high

economic value and scientific value; regenerated forest with a relatively high density.

In addition to Dak Lak forest, there exists many rare species of animals mostly foundin Yok Don National Park and the reserves of Nam Kar, Chu Yangsin A lot of rare

species of animals are listed in the countrys Red Book and some included in the

worlds Red Book.

2.4. Minerals

Dak Lak is endowed with not only land and forest resources but also a variety ofminerals. The province hosts a lot of mineral mines of various size, of which many

are rare and precious such as kaolin clay (over 60 million tons of kaolin clay at MDrak, Buon Ma Thuot), brick clay (over 50 million tons at Krong Ana, M Drak, Buon

Ma Thuot), gold (Ea Kar), lead (Ea H Leo), phosphorus (Don Village), peat (Cu M

Gar), gem (Opan, J ectit), paving stones, construction stones, construction sand

3. Infrastructure

3.1. Traffic

By road: Dak Laks traffic network links to the neighboring provinces of the CentralHighlands and coastal Central of Vietnam. I ts total of 180 communes and wards own

highways leading to the central area of the province. Generally, its road network is

able to meet the peoples demands for travelling and commercial exchange.

By air: Dak Laks Buon Ma Thuot Airport is designed for transport of passengers onthe routes of Buon Ma Thuot Ho Chi Minh City, Buon Ma Thuot Da Nang City,

Buon Ma Thuot Ha Noi City.

3.2. Electricity

Dak Lak has made rapid strides in developing its power grids. At present, its city and13 districts are connected with national grids. The total of 180 communes, wards and

towns have electricity.

3.3. Post and telecommunications

Dak Laks postal and telecom facilities have been procured well over the last period.

The province has made its entire telecom network digital, brought into use advanced


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equipment and recorded the coverage of mobile phone networks such as Vinaphone,

Mobiphone, Viettel, S-Fone, HT-mobi.

3.4. Health care

Dak Laks communes, wards and towns now have medical stations with the

proportion of 4.5 doctors to 10,000 residents and 12.2 hospital beds to 10,000residents. At the provincial level, there are one general hospital of 500 beds and one

specialty hospital of 100 beds, one leprosy treatment center of 30 beds and 7

medical stations. At the district level, there exist 12 general hospitals, 12 malariaprevention sanitation teams and 12 family planning committees. At grassroots level,

there are 180 medical stations and clinics at 180 communes, wards and towns.

3.5. Culture Information

The development of culture and information has helped improve the locals spirituallife. Dak Lak now records two cultural centers of provincial and municipal levels.

Radio-broadcasting reaches every place across the territory. The proportion oftelevision viewers hits 95% of the population. 97% of the population have access to

Radio the Voice of Vietnam.

Socio-economic growth 2007

* Economic structure (at constant price of 1994): Agriculture and forestry (54.29% );Industry Construction (18.75%); Trade Tourism Service (26.96%)* The average growth rate hits 12.77% per year with agriculture forestry achieving2.81%, industry construction 38.28%, trade tourism service 20.85%; value

added (at constant price of 1994) records 8,903 billion dongs.

Investment plan

Dak Laks total investment capital needed for development in 5 years (2005-2010) is

estimated to hit around 12,000 billion dongs, including:

1. Capital structure

The capital managed by localities makes up 76.1% of the total, with 21.7% fundedby the State and the locality; the States development investment credit accounts for

1.7% , State-run enterprises investment capital 14%, ODA and FDI 3.9% , the capital

contributed by the locals and other economic sectors 25.8%, the States investmentin the province 32.9%.

2. Investment plan

Agriculture: The priority is given to afforestation, intensive cultivation of coffee trees,

rubber, pepper and some other industrial crops, construction of irrigational works,

concreting the network of channels and ditches.

Industry: The focus is on agricultural and forest products processing industry,mechanical industry, manufacture of high-class building materials, production of


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high-grade leather, textile items, innovation of power transmission network, water

supply and drainage system.

Tourist services: Great emphasis is placed on building ecological and cultural touristsites. Dak Lak is planning to develop the tourist resorts of Lak, Don Village, Dray

Sap, Dray Nur in the short term.

Traffic, post offices: Dak Lak will pay keen attention to having urban and provincialroads asphalted, developing traffic network and post offices in rural areas.

Culture and society: Dak Lak will strengthen job training, develop education, health

care and daily activities at residential areas.

Trade and Tourism

Potentials and prospects

* TradeThe aforesaid advantages of land resources enable Dak Lak to create a huge

volume of commodities for the market such as coffee (435,000 tons per year),

rubber (25,747 tons per year), cashew nuts (16,297 tons per year), pepper (6,500

tons per year), corn (600,000 tons per year), honey (5,000 tons per year), cotton-seed (4,000 tons per year), cassava (460,000 tons per year) Dak Lak also

contributes around 60% of coffee output to the nation. To increase export value in

the world market, Dak Lak has embarked on building up the trademark of Dak LakProvinces exports in general and Buon Ma Thuot coffee in particular. The trademark

is designed to carry the value of origin and protected across the territory of Vietnam.

At present, Dak Lak Province is working on building a coffee hub at Buon Ma Thuot.

* Tourism

One of Dak Laks great strengths is tourism development. Most of Dak Laks famous

attractions are reachable within 50 kilometres from Buon Ma Thuot City, well-suitedto tourist activities. Such great advantage is being brought into play and effectively

exploited, resulting in an average tourism growth rate of 16.86% per year in theperiod 2001 2005. I n 2001, Dak Lak welcomed 70,100 tourists (including 4,250

international tourists). In 2006, this figure amounted to 208,400 visitors (including

19,521 international tourists). Entering a new period, Dak Lak defines tourism as oneof its breakthroughs for conversion of economic structure.

Dak Lak features huge potentials for tourism development. Dak Lak is endowed withmany beautiful landscapes, especially the magnificent waterfalls of Dray Sap, Dray

Nur, Krong Kmar, Thuy Tien, Ba Tang, big reservoirs of 200-600 hectares such as

Lak, Ea Kao, Ea Don, suitable for rowing, water-skiing, angling and otheramusements. Coming to Dak Lak, tourists will find great interest in visiting primeval

forests representing diverse ecosystem including Yok Don National Park, Chu YangSin National Park, Nam Ka Special Purpose Forest Some famous place-names can

be listed such as Don Village (renowned for hunting and taming wild elephants), Dinh

Lac Giao (the place which imprints the civilization of the Vietnamese on the Central


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Highlands, King Bao Dais private residence, Yang Prong Champa tower (built in the

14th century, Dak Tuor cave, the provinces museum (located right at the centre ofBuon Ma Thuot City, featuring a mock-up of Buon Ma Thuot victory in the Spring

1975 general offensive campaign).

What fascinates tourists is also the profusion of local habits and customs. I t is

because Dak Lak not only represents the great cultural heritages of ethnic groupssuch as E de, M Nong through notable epics (Dam San, Dam Bri, Xinh Nha) and

physical cultural heritages (gong, Dan Da an ancient musical instrument with 11

slabs of stone), but also is home to over 44 brotherly nationalities. Despite notsettling down in separate areas, these nationalities gather their people in some

particular places and feature distinctive identities, forming a unique folk culture of

the Central Highlands.

Dak Laks traditional culture also interests tourists, especially those studying history,

culture, ethnography, linguistics In addition, Dak Lak preserves traditional craftslike sculpture, sculpting charnel-house statues, brocade weaving as well as peculiar

cultural activities, especially festivals of ethnic groups such as harvest festival (heldin late December), elephant race festival (held on great holidays), Gong of the

Central Highlands festival the intangible cultural heritage Gong culture of theCentral Highlands.

* Development Orientation

Dak Lak will focus on developing ecological tourism and cultural tourism

- As for ecological tourism, Dak Lak will strengthen such tourist forms as lake river

waterfall excursion; mountain climbing; visiting and researching forests; visiting

national parks, natural reserves; coffee tourism (contemplating the model ofplanting, looking after, harvesting and processing Buon Ma Thuot coffee)

- As for cultural tourism, Dak Lak will focus on developing tourist activities: excursing

revolutionary museum, national museum; attending traditional, cultural and folk

festival; excursing, studying, trading in fine arts and handicraft articles; culturalamusements; touring accompanied by discovery of intangible cultural heritages.

- Master planning of Dak Lak tourism to the year 2010 and detailed planning of

tourist resorts: Lak lake tourist resort, Ea Kao lake tourist resort, Don Village tourist

resort, recreation area at the centre of Buon Ma Thuot City.

To develop Dak Laks trade and tourism industry compatibly with its potentials and

strengths, Dak Laks Province is working on promulgating investment incentives in

the field of trade and tourism, together with flexible conditions and mechanism.These efforts are aimed to attract local and overseas investment to help Dak Laks

trade and tourism industry rapidly reach new heights.

Documents

Review of Dak Lak