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Local Economy

Last updated: Friday, October 20, 2017

 

Thanh Hoa: Dynamic Economic Zone of Vietnam

Posted: Tuesday, July 18, 2017


Thanh Hoa is a dynamic economic zone of Vietnam. Prime Minister Nguyen Xuan Phuc said this at the Thanh Hoa Investment Promotion Conference themed “Thanh Hoa province is a potential destination for investors” on May 18. With its specific conditions and its plans to 2030, a vision to 2040, Thanh Hoa province targets to be a sustainable and prosperous province in the future.

Recently, the Thanh Hoa Provincial People’s Committee cooperated with the US-based BCG Consulting Company to adjust the master plan for socioeconomic development up to 2030, with a vision to 2040. The Provincial Party Committee, the Provincial People’s Council and the Provincial People’s Committee unanimously agreed to pick five pillars for investment attraction and growth boost: Processing and manufacturing industry, agriculture, tourism, health, and infrastructure development and urbanisation.

To carry out the contents of the master plan, the province is concentrating on mobilising investment resources, completing the infrastructure for Nghi Son Economic Zone and industrial parks, and ensuring traffic, electricity supply and water supply to the fence of investment projects.

Nghi Son Economic Zone has attracted 164 investment projects, including 151 domestic projects and 13 foreign projects, with a combined registered capital of VND109,604 billion and US$12.71 billion. Remarkable projects include US$9.3 billion Nghi Son oil refinery project (turning out 10 million tonnes of products a year), US$622 million Nghi Son cement plant (putting out 4.3 million tonnes of product a year), US$600 million Cong Thanh cement plant (manufacturing 5.8 million tonnes of product per year), US$2.54 billion Nghi Son thermal power plant (2,400 MW), and Nghi Son steel rolling mill (7 million tonnes of billets a year).
Thanh Hoa City will manage to develop a modern and synchronised urban area, connected with Sam Son City and Dong Son district; and focus on building new modern urban zones.

In addition, Thanh Hoa province has great potential for resort and vacation property development with 150 km of coastline, 50 nationally and provincially recognised monuments like Ham Rong cultural and historical relic, Ho Chi Minh Memorial, Truc Lam Monastery, Heroic Vietnamese Mother Temple, and Dong Son ancient village. At present, relics have been planned, preserved, embellished and their intrinsic values promoted together with tourism development
Sam Son will be developed into a coastal city and a tourist centre of the province and the country. This is an opportunity to invest in beachside vocation properties with 16 km of beaches and over 16 rated historical sites such as Doc Cuoc Temple, Co Tien Temple and Trong Mai Duet Stone. The city has convenient traffic infrastructure, and synchronous and modern urban infrastructure.

In addition, in Thanh Hoa province, many attractions can be developed into tourist centres, such as Hai Hoa in Tinh Gia district and Nghi Son Economic Zone, about 40 km from Thanh Hoa City. This will have 154 ha of land for seaside tourism development (phase 1), including 23.3 ha for four-season ecological tourism complex (phase 1), 10.6 ha for coastal services and sandy beaches (four-season ecological tourism complex, phase 1), and 58.5 ha for four-season ecological tourism complex (phase 2). Hai Tien seaside tourism zone, 25 km from Thanh Hoa City, will have an area of 400.64 ha.

Investors in Thanh Hoa province will be granted many preferential policies. Newly established enterprises are entitled to a preferential tax rate of 10 - 17 per cent, applied for 10 years, or 15 years or lifetime. They will be also exempted from tax for 2-4 years and granted a 50 per cent tax reduction for 4-9 years.

Land and water surface rent exemption for projects eligibly engaged in specially encouraged investment fields in localities with extremely difficult socioeconomic conditions and for projects using land to build houses for workers in industrial parks.

Land and water surface rent exemption for projects in the course of building basic infrastructure. The time limit for this preference is three years dated from the date on which the decision on land or water surface rent is issued.

Land and water surface rent exemption I 2 - 15 years for projects in the process of building basic infrastructure, depending on type of projects and localities.
Needless to say, Thanh Hoa province will be an attractive investment destination when it has a good development plan conducted by the US-based BCG Company and draws big private investors such as FLC Group with FLC Sam Son Resort, Vingroup, Sungroup and T&T Group. The province expects to welcome more investors in the future.

Therefore, at the Thanh Hoa Investment Promotion Conference 2017, the province granted investment certificates to 32 projects with a total registered investment of VND135.3 trillion (US$6.1 billion), of which VND76.5 trillion will be channelled into manufacturing and processing industry, VND12 trillion will flow into agriculture, VND22.8 trillion will go to tourism, VND2.5 trillion will be invested in healthcare, and VND21.5 trillion will be channelled into infrastructure and urban development.

Mr Nguyen Dinh Xung, Chairman of Thanh Hoa Provincial People’s Committee, pledged that Thanh Hoa province will continue striving to have “three bests” by 2020: Best infrastructure for enterprises, best land rent and labour cost, and best service in administrative procedures. Consequently, Thanh Hoa province will rapidly and sustainably develop into a dynamic economic zone in Vietnam.

Song Uyen








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