Potential for industrial development investment in Dak Nong province
Publish date 09/01/2018 | 15:23  | View count: 230

1. Developing supporting industries for bauxite mining and aluminum electrolysis

Dak Nong has rich mineral resources with great reserves, especially bauxite with approximately 3.4 billion tonnes of raw ore according to the approved planning. At present, the Nhan Co bauxite deposit is planned to cover an area of 2.864 ha, with estimated reserve of nearly 43.7 million tonnes of raw ore; 20 million tonnes of pure ore. This means that an average of 15,247 thousand tonnes of raw ore and about 7,983 tonnes of pure could be exploited out of 1 hectar to serve the operation of Nhan Co alumina Plant, which has total investment of VND17,822 billion and capacity of 650,000 tonnes/year. By 2020 the capacity will increase to 1.3 million tons/year. Currently, the Plant has been in operation and had products to serve export.

Having the largest reserve of bauxite in the country has facilitated the province's exploitation and construction of a large-scale bauxite mining and alumina manufacturing complex with long-term operation and will be a basis for attracting potential investors. In addition, the bauxite ores in Dak Nong province in particular and of the Central Highlands in general are also considered the best of their kind in the world. This is an important resource for the province to build and develop bauxite, alumina and aluminum processing industry. Not only does it create immediate resources but it also has long-term significance through motivating the socio-economic development, ensuring security and national defense in the Central Highlands.

To promote this strategic advantage, the Government issued Decision No. 1439/QD-TTg on June 19, 2016, approving the regional construction plan of Dak Nong province untill 2035 and with a vision to 2050. Therein, the Party and State determines to build up and make Dak Nong the technology center for exploiting and processing bauxite and aluminium of the country.

Also, the Resolution of  the 11th Party Congress of Dak Nong province, tenure 2015 - 2020 has clearly defined its determination to make Dak Nong the industry center for bauxite-aluminum- sponge iron of the whole the country in the next 20 years. In particular, bauxite- aluminum - sponge iron development is considered as one of three breakthroughs in socio-economic development strategy of the province. 

At present, the province had had the project on construction of Dak Nong Aluminum Electrolysis Plant implemented in Nhan Co Industrial Park, Dak R'lap District. The plant has its proposed investment capital of VND15.000 billion  and  capacity of 450.000 tonnes per year, executed by Tran Hong Quan Co., Ltd. This is a very important and the first project on deeply processing minerals and manufacturing aluminium in Viet Nam, which is of great signigicance for the synchronous development of the bauxite mining-alumina processing - aluminium electrolysis industry in Viet Nam.  

Once the plant comes into operation, it will create a self-contained industrial chain of  bauxite mining - alumina processing-  aluminium ingot manufacturing, resulting in the development of a number of  supporting bauxite mining and aluminum electrolysis industries such as: chemical manufacturing, mechanical repairing and manufacturing, metallurgy, machinery manufacturing to serve automobile manufacturing and other services... Those are the areas  that Dak Nong is calling for investment.

2. Developing processing industry

At present, the production of perennial industrial crops such as coffee, rubber, pepper and annual crops such as corn, beans, sweet potato, cassava has come up to hundreds of thousands of tonnes. Specifically, the out put of coffee bean is around 300,000 tonnes/year; pepper over 28,000 tonnes; cashew over 13,700 tonnes; fresh rubber latex over 30,000 tonnes; sweet potatoes over 100,000 tonnes; corn over 330,000 tons; types of beans 20,000 tonnes.

Large as the output may seem, the processing of agriculture commodities of the province has yet to meet requirements. In fact, agricultural commodities processed in the province just account for 20% of total production while the rest 80% are sold through purchasing agents or merchants as raw products, resulting in low value in term of price. Therefore, this area is sure to offer much chance for investors.

Source:  Investment Promotion Center of Daknong Province