Some investors believe that although provinces in Vietnam’s Central Highlands have screened and listed priority projects to invite investment, these plans remain too general, while investors need projects that are truly concrete, detailed, and feasible. At the same time, the provinces must also accelerate administrative reforms in the investment sector and focus on improving workforce quality.
Abundant Potential
The Central Highlands covers a total natural area of 5.4 million hectares, with about 1.5 million hectares of basalt soil ideal for developing a diversified agricultural economy. The region currently boasts more than 470,000 ha of coffee yielding nearly 1 million tons annually, 144,000 ha of rubber producing 111,000 tons of dry latex per year, 236,000 ha of maize with 1 million tons, 32,000 ha of sugarcane yielding about 1.7 million tons, 28,000 ha of tea producing 190,000 tons of fresh buds, and 15,700 ha of pepper harvesting around 39,000 tons each year.
The Central Highlands also holds abundant mineral resources, including large reserves of peat, lignite, kaolin clay, pozzolan, and especially bauxite, estimated at about 4.5 billion tons—91% of Vietnam’s total reserves. This high-quality bauxite provides ideal conditions for developing an aluminum–alumina industry.
The region is equally well-suited for tourism, with natural landscapes, cultural heritage sites, and traditional ethnic festivals that create distinctive and attractive tourism products. Its lakes, waterfalls, and rich biodiversity support eco-tourism, while areas with mild climates—such as Da Lat, one of Vietnam’s premier resort cities—offer opportunities for leisure tourism. Cultural tourism also thrives, thanks to well-preserved traditional villages of ethnic minorities, their crafts, and dozens of unique festivals.
Limited Investment Attraction
In recent years, investment attraction in the Central Highlands has shown some initial progress. After the 2009 Central Highlands Investment Promotion Forum in Buon Ma Thuot, investment capital surged: from September 2009 to June 2011, total investment reached 89.245 trillion VND, averaging 35.5 trillion VND per year, more than double the previous average of about 16 trillion VND per year.
Over the past two years, the region issued 20 investment certificates with a total registered capital of about 10.38 trillion VND. Notable figures include: Dak Lak with 7 projects worth 3.104 trillion VND, plus 12 committed projects totaling 7.412 trillion VND; Kon Tum with 2 projects worth 2.222 trillion VND and 1 committed project of 700 billion VND; Dak Nong with 5 projects totaling 2.395 trillion VND; Gia Lai with 2 projects already operational with 150 billion VND; and Lam Dong with 4 projects worth 2.501 trillion VND, plus 13 additional committed projects of 8.11 trillion VND. Investments focus mainly on agro-processing, building materials, reforestation, rubber plantations, tourism, education, and healthcare.
As of August 2011, the Central Highlands had attracted 149 foreign direct investment (FDI) projects with total registered capital of nearly 808 million USD, accounting for 20.52% of the projects and 3.42% of total registered capital in the Central–Highlands region.
However, challenges remain. According to Tran Viet Hung, Deputy Head of the Central Highlands Steering Committee, only about 30% of the projects pledged at the Buon Ma Thuot forum were actually implemented, and only 42% of committed projects have been put into operation. Project numbers and scale remain small, technology is outdated, labor use is low, and investments concentrate mainly in urban areas.
Proposed Solutions
Experts suggest the region must accelerate infrastructure development, particularly in transport, since the current road network cannot handle the massive flow of raw materials needed for agro-processing. Although provinces have listed priority projects, these remain too vague; investors require specific, detailed, and feasible proposals. Provinces must also push administrative reform in investment procedures and improve workforce quality, as weak human resources reduce the region’s competitiveness compared to other parts of Vietnam.
To create unified strength in investment promotion, Deputy Minister of Planning and Investment Dang Huy Dong recommends that the Central Highlands provinces jointly develop sectoral and regional planning strategies. Alongside provincial efforts, central ministries should support the region with targeted infrastructure investments. The Ministry of Transport should advise the government to focus on key transport corridors to create a strong arterial network, providing a new growth engine. Local governments should also actively seek investment under BOT and BT models to gradually upgrade transport infrastructure.
Finally, to place the Central Highlands firmly on investors’ radar, the government and relevant ministries should establish a special investment policy framework to facilitate and incentivize investment in the region.