DQEZ-located Doosan Vina is the most successful foreign investor in Quang Ngai According to the report made by Quang Ngai Provincial People’s Committee on the 25 year time’s development of Quang Ngai province – after being detached from Nghia Binh on July 1 – was an agricultural province: poor & extremely difficult. However, the development of the province, especially industry was marked after the establishment of Dung Quat Economic Zone which attracted the landfall of investors bringing the significant improvement to this central province. Reasons of attracting investors Established in 1996, DQ site was an industrial zone. It, however, was changed to be Dung Quat Economic Zone (DQEZ) as approved by the Prime Minister with a total area of 10,300 hectares. DQEZ is said to be the country’s hot destination for foreign and Vietnamese investors because of its several attractive factors. The first attractive point is its great position. The zone locates in Quang Ngai province, in the central coast region of Vietnam, halfway between Hanoi and HoChiMinh City (860 kilometers), and is the starting point of one of the trans-Asia land routes connecting to the Lao PDR, Cambodia and Thailand. The second attractive point is convenient transport system. It is close to Chu Lai Air Port (Quang Nam province), adjacent to National Highway No. 1A, trans-Viet railway, especially the deep sea port system that is valuable for the development of heavy industry. The third attractive point is its infrastructure system. The fundamental infrastructure system (roads, berths, water supply, power supply, waste treatment facilities …) and social amenities (hospital, vocational training schools, recreational areas …) inside Dungquat EZ have been completed. The system is continuously upgraded, expanded to offer a comprehensively improved environment for in-zone enterprises. Reportedly, DQEA has seen 114 projects licensed, but it is planned to lure 125 projects by 2015 and continually go up to 150 projects by 2020 with total registered investment of 14-15 billion USD. The fourth attractive point is its functions approved by the Vietnamese Government to be a multi-sector economic zone, which is the base for oil refining and petrochemical industries, heavy industries of large-scale (steel mill, shipbuilding, mechanics, cement production, automobile…), light industries, services of finance, banking, tourism and recreation, real estate … The fifth attractive point is its encouraged policies. The zone is the area where the State Government and the provincial government apply high investment incentives and favorable regimes in management and operations. Investors to DQEZ will also enjoy supported and encouraged policies about training workers, tax and land leases. The sixth attractive point is its business and investment environment. Currently, as many as large-scale plants have been in smooth and effective operation, including Dungquat Oil Refinery with an input capacity of 6.5 million tons of crude oil per year which will be expanded to an annual capacity of 10 million tons; Dung Quat Shipyard, the Dung Quat Bio-Ethanol plant; the Polypropylene Plant; Doosan-Vina heavy industries factory; Dungquat shipyard; Dungquat Polypropylene plant… Besides, some large-scale projects are under construction and are projected to invest in the upcoming time such as the thermal power plant, which is a large-scale FDI project worth US $ 2 billion invested by Semcorb (Singapore); the Dung Quat Port No.2; the Gas transmission from Blue Whale field to Dung Quat site; and the second stage investment of Dung Quat Refinery. DQEZ is considered one of the country’s fastest development and most successful economic zone in the country. Launching pad Dung Quat Oil Refinery - known as the heart of DQEZ - is the key to open the launching pad From an under-developed agriculture-based province, Quang Ngai has now become one of the localities posting high economic growth and per capita income. In 2013, the province’s GDP increased more than 10 times compared to 1990 while the annual per capital income soared 112 times from 388,000 VND to 43.77 million VND. In the 1990s, Quang Ngai had only 43 enterprises and factories and over 7,700 small industrial and handicraft establishments. Now, the province is home to the Dung Quat Economic Zone with the country’s first oil refinery of Dung Quat, together with three industrial parks – Tinh Phong, Quang Phu and Pho Phong. There are more than 300 industrial factories and nearly 14,500 small-scale production establishments operating in the province. According to the latest statistics of DEZA, the zone has so far lured 114 projects licensed with total registered capital of over 8 billion USD, of which there are 94 domestic projects and 20 FDI projects. So far an amount of 5 billion USD has been disbursed. The operating plants in the zone create job opportunities for over 14,000 workers. To gain more momentum for development, Dungquat EZ is oriented to be expanded, and become a national oil-refining and petrochemical center. The zone will be expanded from the current area of 10,300 hectares to more than 45,000 hectares. Quang Ngai province is planed to be an industrial province by the year 2020 To continually push up the development of DQEZ in the future, Quang Ngai Government has been making efforts in creating as many as plans and chances to call for investors. According to vice chairman of Quang Ngai Provincial People’s Committee – head of DQEA, Mr. Pham Nhu So, the province will specially focus on improving infrastructure in the zone; creating advanced administrative policies; developing urban; and mobilizing fund for the improvement of infrastructure in the zone. Besides, the province will make the best efforts in doing well the works of planning and land acquisition that will create investment environment to be more attractive. Minh Chau
Posted on: Mon, 07 Jul 2014 13:08:58 +0000
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