DIVERSIFICATION OF INVESTMENT CAPITAL SOURCES: The "key" to economic development of the new Lam Dong province

The new Lam Dong province officially came into operation on July 1, 2025, not only expanding its large administrative space, but also consolidating economic resources, creating new opportunities for socio-economic development in the midland and coastal areas of the Southern Central Highlands. What is the "key" to open the investment door for Lam Dong to become a growth pole of the region and the whole country?

Lam Dong needs to diversify investment capital sources to develop the economy . Photo: Hoang Sa

In the context of current regional development, the organization of economic space linking localities is a prerequisite for effectively exploiting local potential, enhancing regional connectivity, promoting sustainable, balanced and effective development. Therefore, the merger of Dak Nong, Lam Dong and Binh Thuan provinces into the new Lam Dong province is not only a matter of reorganizing administrative boundaries, optimizing resources, exploiting economic potential, promoting regional connectivity, forming major economic centers, creating conditions to enhance competitiveness and attract investment, in line with the trend of international integration, but also a strategic development solution for the midland and coastal region of the Southern Central Highlands.

• ECONOMIC PICTURE

Before the merger, Lam Dong province was in the top 16 provinces and cities with budget revenue from 10,000 - 20,000 billion VND, and Binh Thuan and Dak Nong were in the group with budget revenue under 10,000 billion VND nationwide. According to the budget revenue estimate for 2025, Dak Nong strives to collect 3,500 billion VND, Binh Thuan collects about 10,300 billion VND, and Lam Dong strives to collect 15,000 billion VND.

With the above-mentioned revenue before the province was merged, after the merger, Lam Dong province will have a total budget revenue this year of 28,800 billion VND, under the condition that if localities collect correctly, collect enough, implement well the projects and solutions to prevent revenue loss... contributing to completing and exceeding the budget revenue plan for 2025. Accordingly, Lam Dong's economic scale is also expanded with the gross regional domestic product (GRDP) ranking 8th in the country, estimated at about 320,000 billion VND, from which the province's budget scale also increases and is one of the resources for investment and development.

The goal of merging administrative units at the commune, ward and provincial levels is nothing more than organizing a two-level administrative apparatus in provinces and cities to improve efficiency, effectiveness and efficiency; at the same time, setting out a roadmap to streamline the staff, civil servants and employees working in administrative agencies, thereby gradually reducing budget costs for the administrative apparatus (previously spending about 65 - 70% of the budget) to increase the proportion of capital invested in rapid and sustainable development goals from the state budget.

• FINANCIAL ECOSYSTEM, MULTI-LEVEL INVESTMENT

The reorganization of administrative units according to the model of "one province - three regions" through the merger of three provinces to form the new Lam Dong province marks a strategic turning point in terms of organizational structure and development space. This event poses both great challenges and opportunities. In terms of challenges, it is necessary to solve the problem of harmonizing institutions, personnel, and resource allocation mechanisms; reducing overlap and conflicts in regional planning; overcoming local thinking and opening up investment flows in a new administrative structure. At the same time, it opens up opportunities to combine three advantageous platforms: eco-tourism and high-tech agriculture; marine economy and renewable energy with red basalt soil resources, minerals and clean energy to create a new growth pole, green - smart - integrated.

MSc. Kieu Cong Thuoc - Chairman of VNFUND said that in that context, the issue of diversifying investment capital sources becomes urgent, not only an economic requirement but also an institutional key to realizing the strategic goals established in the Central Resolutions. Lam Dong needs a flexible, inclusive, and creative investment ecosystem - where the state budget is the driving force, the private sector is the driving force, and innovation fund mechanisms are the catalyst for development.

And above all, the spirit of solidarity - consensus - high political determination from the leadership to the implementation apparatus and the business community, and the people of Lam Dong are the key factors to transform the new organizational model into a real driving force for development. This is the moment for the new Lam Dong province to not only "change its administrative clothes", but to truly break through to become a model for the development of the comprehensively connected mountainous - coastal - Central Highlands region, contributing significantly to the country's development goals by 2030, with a vision to 2045.

The merger creates conditions for designing a strategic regional financial-investment ecosystem with a legal basis and specialized operational organization, helping to optimize existing resources and attract new capital sources based on new policies of the Party and State. Thereby, Lam Dong province needs to establish a multi-layered financial-investment ecosystem. That is, the central budget plays a leading role in strategic investment, local investment fund capital is flexibly used to support priority industries, private capital and FDI focus on investment in production, infrastructure, and services; finally, venture capital and start-up capital will promote innovation...

According to economic experts, in the period of 2025 - 2030, Lam Dong province needs to change its mindset from "attracting capital" to "designing a capital ecosystem", from "applying for capital" to "activating social resources". Diversifying capital sources is a process of combining institutions, technology, people and regional strategies. With high political determination and proactive institutionalization of new financial models, Lam Dong can become a model of a province developing through financial innovation, contributing to realizing national development goals. Diversifying investment capital sources is not only a financial requirement, but also a strategic lever in realizing the post-merger regional economic development model. With available potential, combined with new institutions and innovative financial models, Lam Dong province can completely become a model for sustainable, creative and comprehensive regional development in the coming period.

According to Master Kieu Cong Thuoc, in that new development phase, if we consider “strategic thinking as the engine”, then “capital is the fuel” that operates the regional economic machine. Diversifying and innovating the approach and use of capital is not only an urgent requirement but also a golden opportunity to create a fair, modern and sustainable development model for the new Lam Dong province in the future.

Source: https://baolamdong.vn/kinh-te/202506/a-dang-nguon-von-au-tu-chia-khoa-phat-trien-kinh-te-tinh-lam-dong-moi-092478b/