Removing Bottlenecks to Accelerate Lam Dong’s Industrial Growth

Processing and Manufacturing as a Key Pillar

In the first quarter of 2026, Lam Dong’s industrial production remained stable, with output rising by around 9.19% year on year.

The primary driver for this growth was the processing and manufacturing sector, which is closely tied to the province’s agricultural strengths and export activities. Key products such as processed agricultural items, textiles and garments, construction materials, and commercial electricity all recorded positive growth, meeting market needs.

In parallel, investment attraction has maintained positive momentum. In the first quarter, several new projects were approved in industrial clusters, while existing industrial parks continued to draw additional investment. This indicates that investor confidence in Lam Dong’s industrial sector remains strong.

Currently, the province’s industrial parks host hundreds of active projects with substantial registered capital. However, with occupancy just above 50%, they still hold considerable untapped potential.

Growth Bottlenecks

Despite continued growth, Lam Dong's industrial sector is grappling with structural issues, especially in its infrastructure, energy, and land availability.

To begin with, the progress of infrastructure in industrial parks and clusters is still slow and lacks consistency. At the same time, compensation and site clearance remain significant hurdles that directly impact the timelines for project execution.

In addition, many energy projects, particularly in wind and renewable power, are facing obstacles due to overlaps with mineral resource planning in areas included in the national titanium reserve.

Several completed projects remain idle or are operating below capacity due to planning conflicts, leading to resource waste and lower investment efficiency.

Additionally, major energy projects like the Son My Power Center (which includes the BOT Son My I and II facilities) and the Son My LNG terminal project—both vital for ensuring energy security in the region—are currently addressing bottlenecks to accelerate implementation.

These challenges affect not only the energy sector but also have broader implications for the industrial ecosystem, which depends on reliable power supply and coordinated infrastructure.

Moreover, public investment disbursement has reached only around 2% of the annual target, underscoring the urgent need to accelerate key infrastructure projects that are critical to expanding room for industrial growth.

Expanding Industrial Development Space

According to the provincial People’s Committee, Lam Dong still has considerable potential for industrial growth. However, unlocking that potential will require bottlenecks in infrastructure, energy, and investment procedures to be fully resolved.

Le Trong Yen, Standing Vice Chairman of the provincial People’s Committee, said that in the coming period, priority must be given to resolving land clearance issues and accelerating infrastructure development in industrial parks and clusters. He also stressed the need for close coordination with central ministries and agencies to address bottlenecks affecting energy projects, particularly those related to mineral planning.

Enhancing the investment climate, streamlining administrative processes, and improving transparency will be vital to attracting large-scale industrial investments.

As competition for investment intensifies, addressing infrastructure and energy bottlenecks is not only an urgent requirement but also essential to helping Lam Dong strengthen its industrial base, raise added value, and pursue sustainable development.