Industry Sustains Growth, Creates New Investment Opportunities for Lam Dong
Lam Dong's industrial sector continued to serve as a key engine of economic growth during the first half of 2026, providing a solid foundation for the province to improve its investment environment, expand industrial infrastructure, and strengthen support for businesses in pursuit of new growth opportunities.
Industry Expands Investment Potential
Industry and construction remained one of Lam Dong's strongest-performing economic sectors, recording growth of nearly 9.2% during the first six months of 2026 and making a significant contribution to the province's 7.97% GRDP growth. Industrial production and a broad range of manufacturing activities also maintained positive momentum.
According to Vo Ngoc Hiep, Vice Chairman of the Lam Dong Provincial People's Committee, the performance demonstrates the resilience and adaptability of the province's manufacturing sector despite persistent challenges, including weak market demand, elevated logistics costs, and rising production expenses.
Several of Lam Dong's major industrial products posted strong growth, with many product groups achieving double-digit increases. These included nitrogen-based fertilizers, sports footwear, construction materials, yarn, garments, beverages, and processed fruits and vegetables.
Beyond its direct contribution to economic output, industrial development is strengthening Lam Dong's attractiveness to investors. As manufacturing capacity expands, industrial infrastructure improves, and supply chains become more integrated, the province is positioning itself as an increasingly competitive destination for both domestic and international investment.
Provincial authorities are accelerating efforts to remove bottlenecks at several strategic industrial parks, including Tan Duc, Son My, Loc Son, and Nhan Co 2, with the objective of completing infrastructure development and preparing serviced industrial land for large-scale investment projects.
In the energy sector, Lam Dong continues working with central government ministries to address outstanding issues affecting several nationally significant projects, including the Son My Power Center, the Son My I BOT and Son My II BOT power plants, with a combined capacity of 4,500 megawatts, the Son My LNG Terminal, and multiple renewable energy developments.
These strategic projects are expected to strengthen Vietnam's national energy security while laying the foundation for future large-scale industrial development within the province.
Strengthening Investment Attraction and Business Development
Building on industrial growth, Lam Dong has continued improving its investment climate through administrative reform, greater transparency, and more business-friendly policies.
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During the first six months of 2026, Lam Dong approved 35 new investment projects with combined registered capital exceeding VND 56.1 trillion and US$200,000. The portfolio included four foreign direct investment (FDI) projects, while industrial parks attracted an additional seven new projects.
Existing investors also demonstrated continued confidence in the province by expanding ongoing operations. During the reporting period, 28 projects received amendments to investment policies or investment registration certificates, representing additional registered capital of more than VND 95.3 trillion.
The expansion of existing projects underscores growing confidence within the business community regarding Lam Dong's investment environment.
Within the province's industrial parks, newly approved projects represent registered investment exceeding VND 291 billion and US$200,000, covering more than six hectares.
To date, Lam Dong's industrial parks host 244 active projects, comprising 58 foreign-invested projects and 186 domestic projects, with combined registered capital of more than VND 46.7 trillion and US$515.1 million. Industrial park occupancy has reached nearly 54%.
In addition, authorities approved investment registration certificates for seven projects in industrial clusters, representing approximately VND 403 billion in investment and further expanding manufacturing capacity across the province.
Provincial officials attribute these results to comprehensive efforts to improve the investment environment. Administrative procedures have been streamlined, interagency coordination strengthened, and regular dialogue with businesses maintained to resolve issues involving land access, site clearance, infrastructure investment, and project implementation.
Nevertheless, authorities acknowledge that several challenges remain. A number of large-scale projects continue to face delays in land acquisition and compensation, while infrastructure development at some industrial parks has not progressed as planned. Administrative procedures related to land and environmental approvals also remain lengthy for certain projects.
Alongside investment promotion, business development remains a central pillar of Lam Dong's economic strategy.
Approximately 2,600 new enterprises were established during the first half of 2026, with combined registered capital exceeding VND 12 trillion. Compared with the same period last year, the number of newly registered businesses increased by 31%, while registered capital rose by 50%.
The strong increase reflects both improvements in the province's business environment and growing investor confidence despite nationwide challenges related to financing costs, market demand, and competitive pressures.
However, the business landscape remains mixed. During the same period, 501 enterprises ceased operations, an increase of 69% year-on-year. Approximately 1,200 businesses temporarily suspended operations, down 2%, while 558 resumed operations, an increase of 10% from the same period last year.
The province's business sector therefore presents a mixed picture. Strong growth in new business registrations highlights the attractiveness of the investment climate, while the relatively high number of business closures indicates that many small and medium-sized enterprises continue to face pressure from financing constraints, limited market demand, and rising production costs.
Provincial authorities emphasize that attracting new investment alone will not be sufficient. Supporting existing businesses through market expansion, improved access to finance, digital transformation, and production recovery will be equally important for achieving sustainable long-term growth.
According to Vice Chairman Vo Ngoc Hiep, the provincial government has instructed departments and agencies to further accelerate administrative reform, shorten investment approval procedures, improve public services for businesses and citizens, and promptly resolve obstacles encountered during project implementation.
As Vietnam pursues ambitious economic growth objectives, Lam Dong views industrial development as the foundation of future expansion, while investment attraction and enterprise development are expected to serve as the province's primary growth drivers. Officials believe that continued progress in infrastructure development, administrative reform, and business support will provide the additional momentum needed for Lam Dong to achieve double-digit economic growth and strengthen its competitiveness in the years ahead.