Điện Biên paves the way for investors

ĐBP - With vast tracts of land, an abundant labor force, and a strategic location in Vietnam’s Northwest region, Điện Biên province is steadily asserting itself as an attractive destination for investors. In recent years, the provincial government has rolled out a comprehensive set of measures aimed at improving the investment climate, creating favorable conditions for private sector development, driving economic growth, improving living standards, and unlocking the province’s inherent strengths.

Through synchronized and targeted efforts, Điện Biên has demonstrated strong commitment to creating a business-friendly environment and attracting enterprises. With advantages in land availability, climate, and human resources, the province is becoming an increasingly viable option for both domestic and international investors.

Provincial leaders visit the Mường Mươn hydropower plant, showcasing support for local investment.

One sector receiving particular attention is high-quality agriculture. Among its standout initiatives is the development of macadamia cultivation, a crop identified as a future economic mainstay for the province. Since 2016, Điện Biên has conducted thorough assessments of soil and climate conditions to confirm the crop’s suitability. On that basis, the province has approved 13 macadamia cultivation projects, covering 88,000 hectares, with a target of expanding to 120,000 hectares by 2030. To date, more than 10,000 hectares have been planted in districts such as Tuần Giáo, Mường Ảng, Mường Nhé, and Điện Biên Đông, and Điện Biên Phủ city. However, the rollout of these projects has encountered obstacles, particularly in administrative procedures, policy mechanisms, and land allocation.

Vũ Văn Dũng, Director of HD Kinh Bắc Corporation’s Điện Biên branch, shared: “Initially, we were concerned about delays in land allocation and document processing. But once the provincial authorities stepped in to streamline the procedures, we were able to move forward with the project. We’ve now cultivated 1,200 hectares of macadamia trees. The provincial government has been a reliable partner through frequent dialogues, many issues have been resolved promptly, and procedures have become far clearer and more efficient.”

To ensure the sustainable growth of macadamia cultivation, Điện Biên has introduced mechanisms that encourage both investors and local communities to participate. Under these policies, businesses can lease land directly from the state or enter into partnerships with local farmers, who retain production rights while receiving support in seedlings, materials, technology, and guaranteed product purchasing. This approach has earned strong support from communities, especially in economically disadvantaged areas.

Representative from HD Kinh Bắc’s Điện Biên branch presents the macadamia cultivation model in Pu Nhi commune, Điện Biên Đông district.

Beyond agriculture, Điện Biên has also seen a notable increase in businesses operating in trade, services, and real estate. Currently, the province hosts over 1,330 businesses, along with 730 branches, representative offices, and business locations. In 2024 alone, nine new investment projects were approved. By the end of 2025, Điện Biên is expected to have around 1,450 active businesses, a 30% increase compared to 2020, with total registered capital reaching VND 34 trillion, a 63.6% rise.

Nguyễn Phi Sông, Director of the provincial Department of Finance, stated: “We’ve advised the provincial leadership on various solutions to enhance the investment environment. In addition to simplifying administrative procedures, the province applies the highest investment incentives allowed under the 2020 investment law. Given Điện Biên’s classification as a region with especially difficult socio-economic conditions, investors enjoy extensive incentives. Specifically, newly established businesses are eligible for a reduced corporate income tax rate of 10% for 15 years. In special cases, this preferential rate may be extended for the entire duration of the project upon government approval. Furthermore, businesses can enjoy a tax holiday for two to four years, followed by a 50% tax reduction for two to nine years, depending on the investment category. Income generated from business expansion or technological upgrades is also eligible for corresponding tax exemptions and reductions.

Regarding imports, enterprises are exempt from duties on goods used to form fixed assets. Raw materials for production are also tax-free for the first five years. Fixed assets may be depreciated at twice the standard rate. Investment projects are granted full land-use fee exemptions and enjoy 11- to 15-year land lease waivers depending on the sector. For projects within the Tây Trang international border gate economic zone, investors may receive an additional 50% discount on land lease fees after the exemption period ends.

Thanks to favorable provincial policies, the Northern urban residential area project along Hoàng Văn Thái - Khe Chít road has progressed smoothly.

Lưu Văn Bốn, Director of the Project Management Board for the Northern urban residential area along Hoàng Văn Thái - Khe Chít road, noted: “Throughout the project’s development, we received strong backing from provincial authorities: from legal documentation and detailed planning to land allocation and site clearance. Relevant departments provided close coordination and clear guidance, ensuring the project stayed on track. This responsive support has motivated our long-term commitment to investing in Điện Biên, while also contributing to the province’s modern and well-planned urban development.”

Administrative reform has been identified as a key priority in Điện Biên’s efforts to create a more favorable investment environment. The province has committed to supporting businesses throughout the entire investment process, from initial site surveys and project proposals to implementation and operations. The Standing Board of the provincial Party Committee and the People’s Committee regularly organize investor dialogues to better understand real-world challenges and adjust policies accordingly. Thanks to this proactive approach, many roadblocks have been removed in a timely manner, particularly in land clearance and public investment disbursement.

Backed by a proactive and investor-friendly local government, and bolstered by its rich natural resources, favorable climate, and skilled labor, Điện Biên is emerging as a promising land of opportunity. The development of the private sector, especially in high-quality agriculture, services, and urban infrastructure, is not only enhancing local livelihoods but also laying the foundation for the province’s sustainable growth in the years ahead.

Quang Hưng
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