Dung Quat Industrial Park Becomes Economic Zone

Dung Quat Industrial Park Becomes Economic Zone

The Vietnam Prime Minister has recently issued Decision No.49/2005/QDTTg dated March 11, 2005 to turn the Dung Quat Industrial Park in the central province of Quang Ngai into the Dung Quat Economic Zone.

The decision is to solidify the Politburo's Announcement No.155-TBTW on the establishment of the Dung Quat Economic Zone.

Accordingly, the 10,300-hectare zone will offer the same investment incentives to investors as those offered by the Chu Lai Open Economic Zone in the neighboring Quang Nam province.

The management authorities of the Dung Quat Economic Zone have been authorized to license investment projects worth up to US$40 million each. Vietnamese and foreigners working in the zones will be offered a 50 per cent reduction in personal income tax.

Currently, the government manages the zone, however when the Dung Quat Oil Refinery becomes operational in 2008, the People's Committee of Quang Ngai province will manage the zone.

Dung Quat Economic Zone expects to attract 20-25 investment projects with total registered investment capital of between VND3.5 trillion (US$222.93 million) and VND4 trillion (US$254.8 million) in 2005. Enterprises in the zone are expected to generate total industrial production of VND159 billion (US$10.13 million) and rake in total export revenues of US$12-15 million in the year.

By the end of 2004, Dung Quat Economic Zone had attracted 42 investment projects with total pledged investment of US$2.3 billion.
The People