Proposal for a Special Mechanism for the New Lam Dong Province
On May 10th, Mr. Tran Hong Thai, Chairman of the People’s Committee of Lam Dong province, issued a report on the implementation of the policy to rearrange administrative units at all levels in the province.
After the merger of Lam Dong, Binh Thuan, and Dak Nong provinces, the new Lam Dong province will be the largest in Vietnam in terms of area.
According to the Lam Dong provincial leaders, the new Lam Dong province, resulting from the merger of Lam Dong, Binh Thuan, and Dak Nong provinces, will have the largest area in the country, covering 24,233 square kilometers. However, the road transport system connecting the localities faces several challenges.
Lam Dong province proposes that the Government and the Ministry of Construction adjust the planning of National Highway 28 from a fourth-grade road to a third-grade mountain road. They also request financial support for the improvement and upgrade of the National Highway 28 section from Gia Nghia to Dak Som to Di Linh in the medium-term public investment plan for the 2026-2030 period, with a total length of about 104 kilometers, following the standards of a third-grade mountain road.
To ensure continuous transport connectivity, forming a horizontal connection between the Gia Nghia-Chon Thanh expressway and the Tan Phu-Bao Loc-Lien Khuong expressway, Dak Nong and Lam Dong have agreed on the planning for the period of 2021-2030 and vision to 2050 for the dynamic road project from Gia Nghia (Dak Nong) to Bao Lam (Lam Dong), linking the Central Highlands with South Central and Southeast regions.
The projected road is expected to involve the construction of a new 10-kilometer section (3.5 kilometers in Dak Nong province and 6.5 kilometers in Lam Dong province) of a third-grade mountain road and a large bridge over the Dong Nai River. After the completion of the investment, the province proposes to upgrade it to National Highway 55. The People’s Committees of the two provinces propose that the Central Government consider providing financial support for the construction of this road from the central budget for the period of 2026-2030.
Regarding the improvement and upgrade of the road to Dong Nai 4 Hydropower Plant through the two provinces (which has been planned as National Highway 55) connecting Dak Glong and Bao Lam districts, the section in Lam Dong province has been approved for investment by the province, and the investment project implementation procedures will continue. For the section in Dak Nong province, with a total length of 12 kilometers, the People’s Committee of Dak Nong province has reported and proposed to the Ministry of Finance for financial support in the medium-term public investment plan for 2026-2030.
Currently, transport connections between Lam Dong, Binh Thuan, and Dak Nong provinces face several challenges.
Regarding the planning and investment in expressways, the master plan for the road network in the period of 2021-2030, with a vision to 2050, approved by the Prime Minister in 2021, does not include an expressway connecting Dak Nong, Lam Dong, and Binh Thuan provinces.
Therefore, the People’s Committee of Lam Dong province will propose and recommend that the Prime Minister approve the addition of an expressway connecting Dak Nong, Lam Dong, and Binh Thuan provinces to be built before 2030. They will also advise on the allocation of funds in accordance with regulations, ensuring the shortest, most economical, convenient, and feasible connection between Phan Thiet, Da Lat, and Gia Nghia.
Regarding the railway system, the master plan for the railway network in the period of 2021-2030, with a vision to 2050, approved in 2021, does not include a railway line connecting Dak Nong, Lam Dong, and Binh Thuan provinces.
The People’s Committee of Lam Dong province will propose and recommend that the Prime Minister and the Ministry of Construction adjust and supplement the planning of the railway line connecting Dak Nong, Lam Dong, and Binh Thuan provinces, linking with the railway line through the Central Highlands and the North-South railway line.
Proposing a Special Mechanism for the New Lam Dong Province
According to the Lam Dong provincial leaders, after the rearrangement of administrative units at the provincial level, the new Lam Dong province will propose that the Government, the Ministry of Finance, and other relevant ministries and sectors consider developing special mechanisms and policies to support socio-economic development for specific provinces like Lam Dong, which have large areas, high proportions of ethnic minority groups, limited contributions to the state budget, but have potential in terms of land resources and mineral reserves.
These mechanisms and policies could include flexibility in approving projects and attracting investment, as well as special financial and budgetary policies that allow the province to retain at least 50% of revenue from mineral and energy resources for reinvestment in infrastructure development. This would create a leverage effect, enabling Lam Dong province to harness its full potential, contribute effectively to the state budget, and become one of the more developed provinces in the country.
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