Kon Tum province has been accelerating investment attraction into three driving economic regions: Bo Y International Border Gate Economic Zone in Ngoc Hoi district, Mang Den National Ecotourism Area in Kon Plong district, and Kon Tum City. The province has also paid special attention to luring investment capital into four economic pillars: high-tech agriculture, medicinal materials, urban development, and tourism. This effort is aimed at fully unlocking all potential, effectively utilizing resources, and enabling Kon Tum to achieve rapid, strong, inclusive, and sustainable development.
The Kon Tum provincial delegation seeks to acquire best practices for investment attraction for wood processing projects in Tuyen Quang province
Potential advantages
Kon Tum province is located in the Vietnam-Laos-Cambodia Development Triangle, which is an important connection point on the East-West Economic Corridor. The province has a lot of potential advantages for economic development due to its good location, fertile soil, and favorable climate. These factors allow the province to develop agriculture, forestry, and energy industries. The diverse natural landscapes and unique cultural identities of ethnic minorities are favorable for developing tourism. The province has focused on utilizing and maximizing its advantages to strongly develop the economy in both breadth and depth.
In agriculture, Kon Tum province has a production area for vegetables, flowers, cold-weather fruits, and medicinal plants associated with eco-tourism and agri-tourism in Mang Den eco-tourism area, Kon Plong district. The Prime Minister approved the construction planning of Mang Den eco-tourism area and the general planning of Kon Plong urban area to 2030, covering 138,116 hectares. Mang Den Plateau, at an average altitude of 1,100 - 1,200 meters, is blessed with a cool climate all year round (20°C), which is ideal for forming and developing cold vegetables, flowers, and fruits.
According to preliminary surveys, Kon Tum province is home to 853 species of medicinal plants and medicinal mushrooms. Of these, 30 species of medicinal plants are in great market demand and 27 species are grown and widely used by medical facilities due to their high medical value and economic value. In addition, the province grows Ngoc Linh ginseng and other medicinal herbs under the forest canopy in Tu Mo Rong district. Ngoc Linh ginseng is considered one of the rarest ginseng varieties with the highest saponin content and economic value today.
Kon Tum province has devised, directed, and attracted investments for the development of large-scale, high-tech, ecological, and organic commercial agriculture, leveraging its potential advantages in agricultural economy. The province has also pursued the sustainable development of the pharmaceutical industry by enhancing its local strengths, conserving and utilizing natural medicinal resources, and aiming to become a key national medicinal region and a major pharmaceutical production center of the country. A special focus is on the promotion and protection of the brand name of Ngoc Linh ginseng.
The province has implemented effective strategies and solutions to attract large domestic and foreign investors for high-tech and green agricultural production projects, which provide safe and internationally standardized agricultural products to the market. The province has established several production areas for industrial crops, cold-climate vegetables, flowers, and medicinal plants. With the collaboration of the Ministry of Science and Technology, Ngoc Linh ginseng - a national brand - has been successfully bred, cultivated, produced, and branded, and has gained a strong market position.
Kon Tum province has a certified organic coffee production area that meets international standards. Dak Ha coffee, the first Vietnamese coffee product to receive UTZ certification, has been favored by domestic consumers and recognized as one of the top 500 products and services of Vietnam and one of the top 20 trusted products by consumers. The product also won the Golden Cup for public health.
In addition to high-tech agriculture and medicinal herbs, Kon Tum also boasts natural diversity and primitiveness for tourism development. The traditional cultural identity of ethnic minorities is preserved and promoted with many valuable relics and cultural heritages. Therefore, the province has prioritized unlocking local strengths for tourism development. The 16th Kon Tum Provincial Party Congress also identified tourism development as one of the three breakthrough sectors in the 2020-2025 term.
Based on this, the province developed the Mang Den eco-tourism area as a place of interest on the “Central Highlands green road”, and developed tourism in the border landmark of three countries in Bo Y International Border Gate linked to the Vietnam-Laos - Cambodia Development Triangle, attracted investors to exploit specific tourist routes and local cultural identities to create distinctive tourism products. The good investment made Kon Tum an attractive destination for tourists. On average, in 2021-2023, visitor arrivals to the province increased by 38.59% annually. In 2023 alone, tourist arrivals were estimated at 1.5 million. Total tourism revenue was forecast at VND450 billion, 3.75 times higher than that in 2020.
Kon Tum has experienced remarkable changes in urbanization that have positively supported local socio-economic development. Its urbanization rate has risen year by year. Many high-rise buildings have been constructed in urban areas. Urban service infrastructure has become more synchronized and modernized. Notably, Kon Tum City - the political, economic, cultural and social center of the province - was recognized as a second-class urban area (according to Decision No. 12/QD-TTg dated January 10, 2023 of the Prime Minister) and achieved strong and comprehensive developments in all fields.
Kon Tum urban system has made a significant contribution to the province’s economic growth with a high proportion (more than 50%). Economic growth in urban areas is usually about 1.92 times higher than that in rural areas. Urban incomes, especially Kon Tum City, account for a substantial share of State budget revenue (over 20%). The influential urban system has facilitated the formation of industrial zones such as Bo Y International Border Gate Economic Zone, Hoa Binh Industrial Park and Sao Mai Industrial Park, enabling the economic restructuring from agricultural dominance to industry and services.
Opening door to investors
Kon Tum province has identified four priority pillars to lure investment and foster sustainable growth: high-tech agriculture, medicinal herbs, tourism, and urban development. To attract more investment funds for these four economic pillars, the Provincial People’s Committee issued Decision 114/QD-UBND on April 6, 2023, to revise and supplement the list of investment projects in search of investors in Kon Tum province from 2021 to 2025. The list features 154 projects, including 69 agricultural and forestry projects, 14 industrial projects, 40 office, trade, services and tourism projects, and 31 urban development investment projects.
In agriculture and forestry, Kon Tum province will entice investors to invest in Kon Tum high-tech pig farm (VND 798 billion) and Kon Tum high-tech agricultural project (VND550 billion).
In urban development, Kon Tum will entice large-scale investment projects such as the new urban area in the west of Tran Hung Dao Street, Kon Tum City (VND690 billion), the urban - eco-tourism and sporting complex (VND859 billion), Plei Kan new urban area (US$980 billion), and the trade, service and housing complex in the south of Toong Dam Lake, Mang Den town, Kon Plong district (VND685 billion). Notably, the 273-ha urban, service and tourism complex in Mang Den town is one of the largest investment projects with a total investment capital of up to VND8,000 billion.
According to the Kon Tum urban network development plan to 2020, with a vision to 2025, one of the three main areas oriented for development is the eastern region, with Mang Den eco-tourism area as the nucleus and the driving force for urban development in Kon Plong, Kon Ray and Tu Mo Rong districts. In addition, all urban areas in the province are also oriented to develop tourism, trade - services and industry. In 2021 - 2025, the province will focus on developing new urban areas along the border and main traffic routes to create a chain of linked urban areas in the province.
Kon Tum province considers attracting investment funds into four priority pillars (high-tech agriculture, medicinal herbs, tourism and urban development) as a strategic breakthrough and leverage to boost socioeconomic development, hoping that more investment funds beyond State sources will be invested to create a driving force to promote sustainable socioeconomic development and the cause of industrialization and modernization. With its appealing investment policy, Kon Tum province is open to welcome and ready to accompany and facilitate all businesses to cooperate and invest in the province. This also demonstrates new aspirations, strong commitments and support of the provincial government to the business community and investors in Kon Tum, a potentially untapped province.
By Cong Luan, Vietnam Business Forum
Vietnamese
