In recent years, Lao Cai province has developed into a promising destination for foreign investments – especially in the tourism, construction, and agriculture sectors. This is partly a result of Lao Cai’s strategic location located on the Kunming-Haiphong economic corridor, sharing a border on the Yunnan province of China.
Lao Cai is now a major conduit for trade and investment between Vietnam and southwest China. Businesses with interests in both Vietnam and China should examine Lao Cai’s profile in greater detail to understand if located in the province will provide a strategic advantage in comparison to other locations.
Still, the province is not for everyone. While the province’s growth prospectus is positive, investors will need to manage challenges like the poor state of infrastructure. Other challenges may include the accessibility of land, information access for businesses, human resource quality, and the quality of business support services.
Businesses that are able to manage these challenges to reap the benefits of the province’s strategic location and economic growth can win first-mover advantage.
This is an excerpt from an article appearing in Vietnam Briefing, a subsidiary of Dezan Shira & Associates. For the latest economic, regulatory and business news from Vietnam, visit vietnam-briefing.com.
