Removing Bottlenecks in Industry and Construction to Help Lam Dong Achieve Double-Digit Growth

Every 1% increase in investment capital contributes 0.2% to growth

In the first months of 2026, Lam Dong’s GRDP growth remained below expectations. Authorities identified that several key sectors failed to meet planned targets, notably industry and construction, which recorded growth of only 7.91% by of the end of the first quarter of 2026.

Regarding industrial contributions, the sector posted relatively positive growth during the first five months of the year, driven largely by export-oriented manufacturing. Processing and manufacturing industries continued serving as the primary engine of industrial growth.

However, difficulties remain in site clearance, investment approval procedures and creating favorable conditions for projects to become operational. These issues have emerged as the biggest bottlenecks restraining industrial growth.

Alongside industry, the construction sector is also viewed as a decisive factor affecting economic growth. In reality, construction activities account for approximately 24% of the industry-construction sector. Yet during the first five months of 2026, the sector achieved growth of less than 18%.

The weak performance of construction has been attributed mainly to slow disbursement of public investment capital.

According to assessments, public investment and the progress of major infrastructure projects directly impact the construction sector. When construction growth slows, many related industries and economic services are also adversely affected.

According to the Department of Finance, as of May 14, 2026, Lam Dong had disbursed just over VND 995 billion, equivalent to 6.7% of the capital plan assigned by the Prime Minister and 6.28% of the plan approved by the Provincial People’s Council. Of this amount, transitional capital from 2025 accounted for VND 261 billion, or 6.12%.

The achieved figures remain very low and fall short of required progress targets set from the beginning of the year.

Director of the Department of Finance Ton Thien San emphasized that every additional 1% of GDP from public investment contributes approximately 0.2% to economic growth while creating conditions for infrastructure development and attracting private investment. Therefore, weak public investment performance inevitably drags down growth across many other sectors.

Low public investment has directly impacted the construction sector throughout the province, resulting in sluggish growth in industry and construction and limiting contributions to overall GRDP growth.

Moreover, slow capital disbursement is obstructing the progress of strategic infrastructure projects, thereby restricting new production capacity and reducing the spillover effects needed to stimulate broader economic activities.

Unlocking growth momentum

According to calculations by relevant agencies, to compensate for the growth shortfall recorded in the first quarter of 2026, the industry-construction sector must achieve growth rates of 13.98% in the second quarter, 15.16% in the third quarter and 15.25% in the fourth quarter of 2026.

Regarding growth solutions, Head of Provincial Statistics Pham Quoc Hung proposed that departments and sectors prioritize industry and construction, particularly electricity production, processing and manufacturing industries. Removing obstacles and bringing projects into operation must create genuine breakthroughs.

In relation to the industrial sector, Director of the Department of Industry and Trade Nguyen Ba Ut stated that the department is currently reviewing and assessing 30 investment planning projects for the 2026–2030 period. Through this process, eight power projects with a total capacity exceeding 1,000 MW have been identified as eligible for appraisal and consideration.

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Two projects have already been submitted to the Provincial People’s Committee for appraisal and are expected to receive investment approval in June 2026. The remaining six projects are undergoing accelerated appraisal procedures and are expected to be submitted during the second quarter of 2026.

Director of the Department of Industry and Trade Nguyen Ba Ut

He added that by July 2026, 15 projects in industrial parks and industrial clusters are expected to become operational, with total investment capital estimated at around VND 15 trillion. Once implemented, these projects are expected to create breakthroughs in processing and industrial production, contributing significantly to the province’s GRDP growth.

Regarding construction and public investment, Director of the Department of Finance Ton Thien San affirmed that provincial leaders have issued timely and decisive directives. The current task is for localities and agencies to strictly implement these instructions.

“In addition to ongoing projects, local authorities must proactively accelerate administrative procedures, especially for 149 newly registered projects. Procedures completed to any extent should immediately lead to implementation. The entire province must strive to achieve a 40% public investment disbursement rate by the end of the second quarter of 2026,” San proposed.

To accelerate industry and construction growth, Member of the Party Central Committee, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People’s Committee Ho Van Muoi recently directed departments, sectors and localities to focus on removing obstacles facing investment projects.

For non-budget projects, the provincial leader requested task forces and relevant agencies to become more proactive, avoiding passivity or evasion of responsibility. Any issue that can be resolved must be promptly completed and submitted to competent authorities for consideration.

“The list of projects has already been clearly identified. Vice Chairpersons of the Provincial People’s Committee must urgently step in and resolve issues until concrete results are achieved. Every task related to removing obstacles must have a clear deadline and measurable outcome” the Chairman emphasized.

Regarding public investment specifically, the Chairman of the Provincial People’s Committee also signed an official document directly criticizing units and localities with low disbursement rates.

He stressed that the province has already identified the root causes of delays in public investment. The remaining issue is whether departments, sectors and local authorities possess sufficient determination and decisiveness.

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From now on, all units must immediately abandon the complacent mindset of waiting until year-end to accelerate disbursement. Everyone must act decisively and seriously review their responsibilities in implementing this task.

Member of the Party Central Committee, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People’s Committee Ho Van Muoi.

It can be said that achieving double-digit GRDP growth has become Lam Dong’s top political priority. The industry-construction sector remains the province’s largest bottleneck. Once this sector is effectively unlocked, Lam Dong’s GRDP growth momentum will be activated and accelerated.