Chu Lai Open Economic Zone: First anniversary

3:26:23 PM | 7/8/2005

To date, 103 investment projects have been registered in Chu Lai with a total investment capital of US$1.22 billion. In 2003, with the decision of the Prime Minister to transform Chu Lai into an open economic zone, 34 projects have started operating, seven projects are under construction and 13 projects will be implemented by the end of 2004. On July 25, 2005 alone, the first anniversary of the establishment of the zone, eight projects began construction.

The birth of the first open economic zone, Chu Lai OEZ, is most welcomed by the local authorities and people. Land is being readily handed over to investment projects and the OEZ is fast taking shape. The infrastructure was developed with VND300 billion being contributed by local and central government. One year after establishment, Chu Lai OEC has transformed an underdeveloped area into an attractive destination for local and foreign entrepreneurs.

However, there are certain constraints. Dr. Nguyen Ngoc Quang, Vice-Chairman of Quang Nam and Head of the Chu Lai OEZ Management Board said that according to Decision 108 of the Prime Minister, 100 per cent of the revenue of Chu Lai OEZ in the first 10 years and 50 per cent in the next 10 years will be reinvested in the construction of the OEZ infrastructure. In addition, Chu Lai OEZ Management Board can use the land resources as capital for infrastructure development. However under Decision 185, the government has rescinded that policy nation-wide, including Chu Lai, and returned to approved budget. As a result, a limited budget has slowed the progress of infrastructure development in Chu Lai OEZ and failed to meet the demand of investment.

In spite of difficulties, 1.4 million people of Quang Nam province are confident in the future of Chu Lai OEZ. Mr. Nguyen Ngoc Quang said that like a young child, the first uncertain steps are inevitable. This fact has been borne out in the cases of special economic zones elsewhere which needed many years for their establishment. Just one year after its birth, Chu Lai OEZ has in fact made tremendous developments.