Government incentives to support Central Highlands

The Ministry of Planning and Investment consulted authorities and experts about the draft, which works out preferential policies for the region's socio-economic development until 2020, at a seminar in Hanoi on September 20.

The document says building hydropower plants with capacities lower than 30MW to directly serve the needs of people living in remote areas is encouraged.

Other areas of stimulus include producing and processing products from vegetables, fruits, eggs, milk and artificial forest wood; afforestation; eco-tourism development; and developing breeding farms that are linked with processing facilities and consumption markets.

Preferential policies will be applied for organisations, enterprises, communities, cooperatives, households and individuals that meet authorities' requirements and environmental standards when investing or doing business in Dak Lak, Dak Nong, Kon Tum, Gia Lai and Lam Dong provinces.

Power developers will receive subsidies amounting to half of bank loan interest for 6% of the borrowing sums within the first seven years of borrowing contracts. This assistance will run through 2020.

For every hectare of forest, growers and managers will be granted money amounts equaling 30% of the minimum wages every year.

Those allocated with forest for production will enjoy all products on the assigned areas and will be subsidized for all seedling costs amounting up to VND15 million (US$714) per hectare.

An official from the Ministry of Industry and Trade said it is necessary to increase support levels for loans as well as the terms of loans to make the programmes attractive enough for households to take part in.

Deputy Minister of Planning and Investment Nguyen The Phuong said the policies are based on the specific potential of the Central Highlands and it is important to ensure policy feasibility.

At the seminar, most provincial representatives said that proper policies should be studied for the development of material plants for processing industries such as paper, coffee, rubber and cashew nuts. They suggested that hi-tech production zones should be expanded.

An official from Dak Nong proposed that the Government should cover all infrastructure investment in industrial zones and clusters to better lure investors to the region.

Representatives from Binh Dinh and Khanh Hoa provinces said that preferential policies should also be given to central coastal localities as they are closely connected with the Central Highlands.

The Vietnam Trade Promotion Agency (Vietrade) said early this year that fostering co-operation programmes for the Vietnam – Laos – Cambodia triangle is important for the Central Highlands' economic development in the coming years.