Van Phong Gulf: International-scale Multi-purpose Economic Area

According to the Politburo’s guideline and Prime Minister’s Decision No. 301/QD-TTg dated April 22, 2002 regarding the Van Phong gulf building scheme to 2020, it is essential to transform Van Phong in southern Khanh Hoa province into a multi-purpose key economic area incorporating an international trans-shipment seaport (known as an entrepot), industry and services, tourism and aquaculture. The international entrepot will play a decisive role in creating a close relationship between shipping and trading services.

Distinctive location with outstanding advantages

Van Phong gulf is a belt of land extending to the eastern-most point of Vietnam, 14 km from international territorial waters and close to the conjunction of the sea routes of Europe-North Asia and Asia, and Southeast Asia-Northeast Asia. Van Phong’s location makes it suitable for Vietnam’s largest international entrepot with a capacity of 17 million TEU (Singaporean entrepot’s capacity is about 15.6 million TEU while Ho Chi Minh City’s entrepots is nearly 1 million TEU). It’s entrance is deep enough for ships of the largest capacity to pass through. The entrepot is capable of receiving ships of the largest capacity in the world today (some 400,000 tonnes).

The natural eco-system of the Van Phong - Dai Lanh area, containing rare wild species makes it one of the most breathtaking ocean and eco-tourism resorts in Vietnam. Thanks to its topography of bays and inlets, the development of aquaculture including lobster, sweet snail and pearls can be easily protected from the influence of tourist expansion and seaport projects.

Development scheme for Van Phong economic area

The Chairman of Khanh Hoa Association of Sea Science and Technology, Doctor Nguyen Thiet Hung has reported that the Ministry of Construction has completed Van Phong economic area’s master plan to 2020 in accordance with Notice No.53 dated April 17, 2003 by the Government Office. The plan projects that Van Phong will have 400,000 residents by 2020, with 275,000 of them living in the two urban areas. The Northern urban area including Dai Lanh, the peninsulas of Hon Gom, Hon Lon and Tu Bong, and the township of Van Gia with an area of 4,505 ha and a population of 140,000 people will become the general economic area of international entrepot, tourism, trading and industry sectors. The Southern urban area will host the services sector in Ninh Thuy, Ninh Phuoc, Doc Let and the township of Ninh Hoa.

The international container entrepot, oil port, My Giang special-use port, Hon Khoi port and a tourism port are the main ports. The tourism resorts are located on the Hon Khoi peninsula, and at the tourism sites of Dai Lanh, Doc Let and Mui Du. Additionally, an internationally financed tourism centre, industrial park (IP), aquaculture farms and a residential area are located here. Technical infrastructure development is targeted around the internal and external traffic network, residential areas, and water and power supply. Van Phong economic area is home to two IPs. The Ninh Thuy IP along with the Hyundai-Vinashin Ship Building IP and Multi-purpose IP occupy an area of 500 ha. Meanwhile, Van Thang IP has a 200-ha multi-purpose IP devoted to tourism development.

Van Phong, with about 5,000 hotel rooms and various tourism sites, is expected to welcome 1.4-1.8 million tourists per annum by 2020.  Hon Gom Tourism Site covers the 350-ha resorts of Tuan Le and Hon Ngang, the 210-ha resort of Bai Cat Tham and the 200-ha resort of Hon Gom peninsula. Dai Lanh has a 40-ha eco-tourism site encompassing ocean, mineral water and hot mineral mud deposits. The resort and recreation area of Doc Let – Mui Du and others are also located here.

Aquaculture combined with environmental protection measures such as jointly raising two-shell molluscs helps to both generate income and purify water sources.

Construction of the first two major works is ready to commence. These projects comprise two container wharfs, with an annual capacity of 500,000 tonnes and investment capital of US$105 million, and a gas and petrol bonded warehouse with a one million cubic metre volume and investment capital of over US$50 million. Van Phong is presently home to Dam Mon international port for sand export, the tourism agents of Dam Mon and Hon Ong, and Hyundai-Vinashin plant.

According to the international entrepot’s detailed scheme submitted to the Government, US$3.55 billion is needed to enable the entrepot to achieve its targeted capacity of 17 million TEU by 2020. Mr. Hung said that the required capital will be sourced from the state budget, businesses, official development assistance (ODA) and foreign direct investment (FDI) and also mobilised from the people. The Government is also calling for some international marine groups to pour investment into the construction of Van Phong port.

On October 18, 2004, the Government Office released the conclusion of the Standing Deputy Prime Minister Nguyen Tan Dzung on the adjustment of Van Phong gulf’s common scheme and Van Phong international entrepot’s detailed scheme to 2010 and 2020. The Van Phong gulf project will help serve the national modernisation and industrialisation process. The common scheme should focus on the expansion of the international container entrepot and multi-purpose general economic area in Van Phong. Preferential policies in line with international practice must be mapped out in an effort to lure local and foreign investors for the sustainable development of the region.

• Minh Ky