Vietnamese Government is keen on developing Industrial Parks andEconomic Zones in the central coastal region, Tran Duy Dong, DeputyDirector of Economic Zone Management Department under the Ministry ofPlanning and Investment, said in his talk with the Vietnam InvestmentReview recently.
*What’s your assessment of IPs and EZs in terms of investment capital and economic contribution to the national economy ?
The Government highly values the contribution of IPs and EZs to Vietnam’s investment capital and socio-economic development.
Theyhave helped restructure and modernise the economy. At present, IP andEZ-based enterprises have employed two million workers and produced 40percent of the total industrial production value and 30 percent of thetotal export turnover respectively.
IPs and EZs areattractive destinations for investors, especially foreign investors.Over 50 percent of total foreign direct investment (FDI) capital in thecountry has come from IPs and EZs. Last year, 90 percent of total FDIcapital was channelled via FDI projects in IPs and EZs.
In thecentral coastal region, Thua Thien-Hue and Binh Thuan provinces were notable to attract as much investment as the two leading economic areas ofthe Southeast region and the Red River Delta. By the end of 2013, thecentral coastal region’s IPs attracted 189 FDI projects with registeredcapital of 2.743 billion USD and 830 domestic projects with registeredcapital of 49.600 billion VND (2.3 million USD). Meanwhile, EZsattracted 69 FDI projects with total investment capital of 8.2 billionUSD, and 225 domestic projects with investment capital of 125.235billion VND (5.9 million USD).Although the total investment capital fromthe central coast’s IPs and EZs was modest, it contributed remarkablyto socio-economic development in the region.
*What are the potential sectors in the central coast?
In the central coastal region, the maritime economy, port construction, especially deep-water ports are potential sectors.
Ports and logistic services will provide a goods trans-shipment location for domestic and international cargo.
Thisis a good opportunity for Vietnam to participate in the global valuechains, enhance the value of Vietnamese goods as well as promotesocio-economic development.
The region is also the idealdestination for the development of heavy industry such as shipbuilding,petrochemicals and steel. Dung Quat oil refinery plant has been put intooperation and maintained production stably. We, therefore, can developsupport industries for these industries.
Besides Dung Quat, PhuYen province granted an investment certificate for the Vung Ro refineryproject with investment capital of 3.2 billion USD, and Binh Dinhprovince is considering the 27 billion USD Nhon Hoi refinery project.
Inaddition, the central coastal region has the long and beautifulcoastline which is suitable for developing tourist projects. Seafoodprocessing is also a potential sector to attract the investment.
*Theregion has many advantages to develop, but investment attractionremains limited. Will the Vietnamese Government promulgate specialmechanism and policies to attract investors to the central coastalprovinces ?
The Vietnamese Government aims to achieve equaldevelopment among different regions. So the Government is keen ondeveloping IPs and EZs in the central coastal region.
From nowuntil 2015, the Government will increase its budget to develop DungQuat and Chu Lai EZs. And in the future, other EZs in the region willalso receive support from the Government.
All provinces acrossVietnam are subject to the same investment mechanisms and policies.However, IPs in the central coastal region are facing difficulties,there are calls for lower corporate income taxes in IPs as a specialtreatment to the region.
The Government will also supportthe central coastal provinces in investment promotion and developmechanisms and policies to attract investment especially in projectssuch as the transportation system, coastal paths and power plants.
TheVietnamese Government hopes the development of IPs and EZs in thecentral coastal region will catch up with the Southeast region and RedRiver Delta in the near future.-VNA
*What’s your assessment of IPs and EZs in terms of investment capital and economic contribution to the national economy ?
The Government highly values the contribution of IPs and EZs to Vietnam’s investment capital and socio-economic development.
Theyhave helped restructure and modernise the economy. At present, IP andEZ-based enterprises have employed two million workers and produced 40percent of the total industrial production value and 30 percent of thetotal export turnover respectively.
IPs and EZs areattractive destinations for investors, especially foreign investors.Over 50 percent of total foreign direct investment (FDI) capital in thecountry has come from IPs and EZs. Last year, 90 percent of total FDIcapital was channelled via FDI projects in IPs and EZs.
In thecentral coastal region, Thua Thien-Hue and Binh Thuan provinces were notable to attract as much investment as the two leading economic areas ofthe Southeast region and the Red River Delta. By the end of 2013, thecentral coastal region’s IPs attracted 189 FDI projects with registeredcapital of 2.743 billion USD and 830 domestic projects with registeredcapital of 49.600 billion VND (2.3 million USD). Meanwhile, EZsattracted 69 FDI projects with total investment capital of 8.2 billionUSD, and 225 domestic projects with investment capital of 125.235billion VND (5.9 million USD).Although the total investment capital fromthe central coast’s IPs and EZs was modest, it contributed remarkablyto socio-economic development in the region.
*What are the potential sectors in the central coast?
In the central coastal region, the maritime economy, port construction, especially deep-water ports are potential sectors.
Ports and logistic services will provide a goods trans-shipment location for domestic and international cargo.
Thisis a good opportunity for Vietnam to participate in the global valuechains, enhance the value of Vietnamese goods as well as promotesocio-economic development.
The region is also the idealdestination for the development of heavy industry such as shipbuilding,petrochemicals and steel. Dung Quat oil refinery plant has been put intooperation and maintained production stably. We, therefore, can developsupport industries for these industries.
Besides Dung Quat, PhuYen province granted an investment certificate for the Vung Ro refineryproject with investment capital of 3.2 billion USD, and Binh Dinhprovince is considering the 27 billion USD Nhon Hoi refinery project.
Inaddition, the central coastal region has the long and beautifulcoastline which is suitable for developing tourist projects. Seafoodprocessing is also a potential sector to attract the investment.
*Theregion has many advantages to develop, but investment attractionremains limited. Will the Vietnamese Government promulgate specialmechanism and policies to attract investors to the central coastalprovinces ?
The Vietnamese Government aims to achieve equaldevelopment among different regions. So the Government is keen ondeveloping IPs and EZs in the central coastal region.
From nowuntil 2015, the Government will increase its budget to develop DungQuat and Chu Lai EZs. And in the future, other EZs in the region willalso receive support from the Government.
All provinces acrossVietnam are subject to the same investment mechanisms and policies.However, IPs in the central coastal region are facing difficulties,there are calls for lower corporate income taxes in IPs as a specialtreatment to the region.
The Government will also supportthe central coastal provinces in investment promotion and developmechanisms and policies to attract investment especially in projectssuch as the transportation system, coastal paths and power plants.
TheVietnamese Government hopes the development of IPs and EZs in thecentral coastal region will catch up with the Southeast region and RedRiver Delta in the near future.-VNA
