The northern province of Lao Cai bordering China has licensed another foreign direct investment project with approved capital of US$1.2 million bringing the total number of FDI projects to 22 with total investment capital of US$33.5 million. Chinese companies are increasingly crossing the border to set up shop in and around Lao Cai and the province now has 17 Chinese-funded projects in such fields as mining, electronics assembly, and tourism.
In addition, five more China projects are awaiting licensing. Lao Cai province has applied preferential treatment for Chinese investors such as reduction of land rent for businesses investing in major industrial and commercial areas. Especially, Lao Cai province and Van Nam province of China have a cooperation agreement to build a bridge linking Kim Thanh economic area of Lao Cai with Ha Khau border gate of China.