Lack of raw materials and labor causes difficulties for industrial production in Lao Cai

According to the Lao Cai Department of Industry and Trade, in the first quarter of 2026, the value of industrial production in the whole province is estimated at more than 15,223 billion VND, an increase of 2.01% compared to the same period. Some high-growth industries such as metal production, precast metal products, wood processing... , show the increasingly clear role of the processing and manufacturing industry.

However, many factories cannot operate at full capacity. At Tang Loong Industrial Park - the chemical production center of Lao Cai province, many businesses fall into the situation of "having orders but lacking raw materials".

Apatite ore production of type 1 decreased by 19%, type 3 decreased by 59.3% due to some mining sites stopping operations; many mines have been licensed but are slow to put into operation.

As a result, factories only maintain 60–85% capacity, reducing production efficiency and leading to increased costs.

Not only lacking production inputs, businesses also face the labor problem. Lao Cai currently has about 12,500 businesses, of which more than 6,800 businesses are operating – an increase of 1.5 times compared to 2020.

Rapid development has caused labor demand to increase sharply, while local supply has not kept up.

In many industrial parks and clusters, it is not difficult to see recruitment banners hanging densely with detailed salaries and allowances. However, the number of applications is still modest. More worrying is the shortage of skilled technical workers.

Although the rate of trained workers reaches about 70%, workers with degrees and certificates is only more than 25%. This gap makes it difficult for many businesses, especially in the fields of high technology, mechanics, chemicals... to expand production or upgrade production lines.

Faced with double "bottlenecks", Lao Cai is implementing many solutions to restructure the industry towards sustainability. In the 2026-2030 period, the province plans 20 industrial parks with a total area of nearly 5,800 ha and 50 industrial clusters of more than 2,600 ha, creating great room to attract investment.

Chairman of Lao Cai Provincial People's Committee Nguyen Tuan Anh said that to solve the above problem, the province has issued a plan to implement Resolution No. 34 of the Provincial Party Committee Standing Committee, with a total estimated investment capital of about 7.080 billion VND; of which, the state budget is 1,280 billion VND, and the rest is business capital.

Accordingly, in 2026, Lao Cai focuses on 7 key tasks, in which priority is given to synchronously completing infrastructure for industrial zones and clusters from transportation, electricity, water to telecommunications and fire prevention and fighting; and at the same time create at least 500 hectares of clean land to attract investors.

In addition, the locality is accelerating the relocation of some industrial zones and clusters to serve large infrastructure projects, especially the Lao Cai - Hai Phong railway line.

To fundamentally solve the shortage of raw materials and technical labor, Lao Cai will simultaneously promote the removal of obstacles in mineral exploitation, increase linkages between raw material areas and businesses; invest in logistics infrastructure to reduce transportation costs.

In parallel with that, focus on training technical human resources, linking training institutions with business needs, and gradually improving labor quality.

The province's point of view is to create the most favorable investment environment, shorten procedure time for high-tech projects and supporting industries. Lao Cai develops on the basis of harmonizing interests between the State, businesses and workers," Mr. Nguyen Tuan Anh emphasized.

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