Dung Quat EZ and Quang Ngai IPs: Many Opportunities to Attract Investment from EU

10:11:55 AM | 7/9/2020

Endowed with diverse advantages coupled with an open investment environment, enabling policies, and friendly and open-minded authorities, Quang Ngai province has become an attractive destination for domestic and foreign businesses and investors. Dung Quat Economic Zone and industrial parks in the province play a vital role in promoting socioeconomic development and attracting investment into Quang Ngai province as well as the central key economic region.

Destination of large-scale projects

As one of five coastal economic zones prioritized by the Government for infrastructure investment and assigned highest preferential policies in Vietnam, Dung Quat Economic Zone has attracted large-scale advanced projects like Dung Quat Oil Refinery (with an annual output capacity of 6.5 million tons, to be upgraded to 8 million tons), Hoa Phat Dung Quat Iron and Steel Production Complex (a yearly output capacity of 4 million tons), Doosan Heavy Industries (US$315 million) and VSIP Industrial - Service - Urban Complex. In addition to Dung Quat Economic Zone, the appeal of Quang Ngai province to investors comes from four centralized industrial parks and 15 smaller industrial clusters with modern comprehensive infrastructure. VSIP Industrial - Service - Urban Complex, covering ​​1,746 ha, is considered a modern and model industrial park.

Mr. Nguyen Minh Tai, Director of the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority, said, by the end of June 2020, Dung Quat Economic Zone and Quang Ngai Industrial Parks attracted 352 valid projects with a total registered capital of VND293,283 billion (US$14.347 billion), including 59 FDI projects with US$1.8 billion and 293 domestic projects with VND253,367 billion (US$12.56 billion).

As of now, 170 tenants are active in Dung Quat Economic Zone and Quang Ngai Industrial Parks. They reported steady growth in all fields of operation, including Dung Quat Oil Refinery, Doosan Vina Heavy Industries, Hoa Phat Dung Quat Iron and Steel Complex and VSIP. At present, Dung Quat Economic Zone and Quang Ngai Industrial Parks have generated 50,400 jobs.

Driven by the moto “The success of investors is ours”, in the past time, Quang Ngai province and Dung Quat EZ and Quang Ngai IPs Authority have always supported investors, hosted regular meetings and dialogues to promptly remove difficulties and provide favorable conditions for businesses and investors to develop, and persuaded existing investors to recommend new ones to Dung Quat Economic Zone and Quang Ngai industrial parks. Accordingly, provincial leaders have streamlined administrative procedures and adopted a quick single-window mechanism. In 2018, the province operated the Public Administration Center, which handles administrative documents of 16 provincial departments, thus reducing costs and time to settle administrative procedures for investors and businesses.

To facilitate investors to carry out their projects, Dung Quat EZ and Quang Ngai IPs Authority has proposed the province establish a steering committee on investment, led by the Chairperson or Vice Chairperson of the Provincial People's Committee, responsible for assisting large-scale projects to deal with emerging matters. In addition to investor support, Dung Quat EZ and Quang Ngai IPs Authority has actively coordinated with local authorities to resolve specific problems for each project. It has worked with relevant agencies to give explanations to local people on the process of land compensation and site clearance; and promptly advised the Provincial People's Committee on solutions to land compensation and site clearance.

Being aware that modern synchronous infrastructure will be an essential condition to lure investors, Dung Quat EZ and Quang Ngai IPs Authority gives top priority to mobilizing all resources for infrastructure development. Currently, it is focusing on assisting investors to carry out infrastructure investment projects like VSIP Industrial - Service - Urban Complex, Dung Quat Industrial - Urban Area (Phase 1A), Binh Hoa - Binh Phuoc Industrial Park (invested by South Korea), and Pho Phong Industrial Park (invested by Khanh Hung Development Joint Stock Company). At the same time, it has coordinated with concerned central and local agencies to bring ashore gas from Ca Voi Xanh oilfield and prepare for the launch of gas power projects in Dung Quat Economic Zone.

Actively welcoming EU investors

By 2025, Dung Quat Economic Zone will be developed into an integrated, multi-industry economic zone; one of the industrial - urban - service centers of the central key economic region. It will have a national energy and petrochemical refining center with Van Tuong urban area, Doc Soi urban area and other urban centers. It is projected to become one of the important international trade hubs in the Central Coast and the Central Highlands; and will be a driving force to accelerate the industrialization and modernization of the province.

According to Director Nguyen Minh Tai, the official enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) from August 1, 2020, followed by the upcoming EU-Vietnam Investment Protection Agreement (EVIPA), will open up great opportunities for Quang Ngai province in general, and Dung Quat Economic Zone and other industrial parks in particular, to attract investment flows from the EU. In 2020, to realize the goal of attracting US$500 million, Dung Quat EZ and Quang Ngai IPs Authority will diversify investment promotion activities, especially persuade existing investors to recommend others to the province, targeting those from the EU, Japan, South Korea, Singapore and the United States. Dung Quat EZ and Quang Ngai IPs Authority will improve the quality of investment projects and strengthen inspection into ongoing projects to resolutely revoke slow-moving, ineffective projects; work with industrial infrastructure investors to assist secondary investors to obtain investment and business registration certificates in VSIP Quang Ngai Industrial Park and Dung Quat Urban - Industrial Park. It will continue to support investors to implement large-scale projects such as FLC Group eco-tourism projects, Dung Quat Oil Refinery and Dung Quat Urban - Industrial Area.

Last but not least, Dung Quat EZ and Quang Ngai IPs Authority will concentrate all investment resources for infrastructure and utility development; promote investment into industries with comparative advantage; launch country-target investment promotion programs; and further streamline administrative procedures and investment climate to make Dung Quat Economic Zone and Quang Ngai Industrial Parks a magnet to domestic and foreign investors.

Source: Vietnam Business Forum