Higher Quality in Investment Capital in Industrial Parks, Economic Zones

5:52:50 PM | 7/12/2011

The number of projects licensed into industrial parks (IPs) and economic zones (EZs) in Khanh Hoa province has not increased over the same period last year, but the amount of registered capital jumped 23 times. This good sign shows that Khanh Hoa is attracting bigger, higher quality projects.
Currently, Khanh Hoa province has six IPs established under Government licences. General IPs include Suoi Dau (152 ha, Cam Lam district), Ninh Thuy (207.9 ha, Ninh Hoa commune) and Nam Cam Ranh (203.72 ha, Cam Ranh City). The province gives priority to investors with projects involved in electricity, engineering, automotive and marine equipment. Bac Cam Ranh IP (140 ha, Cam Ranh City) is designed for such industries as apparel and electronic assembly. Van Thang IP (200 ha, Van Ninh district) will encourage and prioritise investors with clean technology.
Beside IPs, Khanh Hoa province has Van Phong Economic Zone, a dynamic engine for the development of Khanh Hoa province and central Vietnam. Van Phong EZ covers 150,000 ha in the north of Khanh Hoa province. Infrastructure development investment is one of most important tasks in the EZ development strategy. For the time being, the EZ is housing many major large-scale projects and is catching great attention among investors.
In the first eight months in 2011, Khanh Hoa province-based IPs and EZs attracted 14 investment projects with a total registered capital of US$1.55 billion. Particularly, the EZ housed 13 projects worth US$1.53 billion and an IP drew one project valued at VND296 billion (US$15 million). Compared with the same period in 2010, the number of projects did not increase but the value of registered capital climbed 23 times. The largest was Van Phong petroleum service complex. The IP attracted just one project valued at VND296 billion compared with three projects worth just VND25 billion and US$2.5 million in the corresponding period of 2010. “In the context of economic slowdown, it is very difficult to attract investment capital, but Khanh Hoa province-based IPs and EZs still exert a pull on investors. This is a good signal for the province,” said Mr Hoang Dinh Phi, Deputy Director of Van Phong Economic Zone Authority.
In addition to general incentives provided by the Government, Khanh Hoa province has the advantage of low-paid labour. All IPs and EZs are situated in prime locations with convenient access to traffic systems like seaports, airports, highways, railways, power grids, water supply systems, and communications networks. In EZs, administrative procedures are simple and transparent. Furthermore, EZs and IZs are actively promoting investment attraction road-shows and providing sufficient information about investment opportunities in Khanh Hoa.
Mr Phi said Khanh Hoa is carrying out many large projects. The State-owned Vietnam National Shipping Lines (Vinalines) invested in an international transhipment terminal; a Japanese-led joint venture built the 2,800-MW 4-turbine Van Phong 1 thermal power centre; the Vietnam National Petroleum Corp (Petrolimex) and Malaysian partner, Petromax, injected US$125 million to build Van Phong petroleum bonded warehouse. Sao Mai-Ben Dinh Petroleum Investment Joint Stock Company poured US$1.3 billion to construct Van Phong petroleum industry service complex which is scheduled to be kicked off in mid-2012.
When investment projects are brought into operation, they will serve socioeconomic development of Khanh Hoa province, the southern central region and the entire country.
Hoang Linh