Dung Quat EZ - Attractive Destination for Korean Investors

10:27:02 AM | 11/7/2019

Dung Quat Economic Zone and Quang Ngai industrial parks have become attractive destinations for many Korean investors. Among 13 countries and territories having projects in Dung Quat EZ and Quang Ngai IPs, Korea is the biggest investor with 13 projects and more than US$584 million of registered investment capital.

Doosan Vina - a pioneering company

Doosan Heavy Industries Vietnam Co., Ltd (Doosan Vina) is currently the largest foreign direct investment (FDI) company in Dung Quat EZ and Quang Ngai IPs, and also a trailblazer of Korea here.

Doosan Vina was granted an investment license at the end of 2006 to invest US$300 million in a 110-ha project. Taking advantage of being an early bird in Dung Quat EZ, where Dung Quat deep-water seaport is located, Doosan Vina built Vietnam's first heavy industrial complex, including factories to manufacture heat recovery steam generators (HRSG), desalination equipment, boilers, materials handling systems (MHS) and chemical handling systems.

So far, Doosan Vina has provided products for 263 projects in 33 countries and territories around the world. With an estimated revenue of US$200 million annually, Doosan Vina has been making a major contribution to State budget revenue and raising the export value of Quang Ngai province.

Mr. Jeong Young Chil, General Director of Doosan Vina, said Doosan Vina is also a leader of logistics equipment. So far, the company has supplied a total of 83 cranes for the world's busiest ports such as PSA (Singapore), JNPT (India) and Saudi Global Port (Saudi Arabia). Doosan Vina is also a supplier of desalination equipment to the United Arab Emirates, Chile and Saudi Arabia.

Doosan Vina is also a chain link in investment promotion between Quang Ngai and Korea. Every year, the company recommends Korean business delegations come to Quang Ngai province to study investment opportunities, and facilitates visits by Quang Ngai executive delegations to Korea to acquire effective development models and call for investors. Typically in 2018, with recommendations by Doosan Vina, six Korean investors came to invest in Dung Quat EZ.

Other Korean businesses investing in Dung Quat EZ and Quang Ngai industrial parks include Unison Etech, Samshin, Yoobong, Wookang Industries, Kwangjin, Hanbit ENG, Nasan Electric Industry Company, and Hanvina Energy – Kwon Deuk Yong.

What interests investors?

Talking about investment advantages of Dung Quat EZ, Mr. Jeong Young Chil, General Director of Doosan Vina, said, our company manufactures heavy industrial equipment so Dung Quat deep-water port is thus a great plus. Thus, the company has invested in a specialized, convenient port to bring our products to many countries around the world. In addition, we are very proud of Quang Ngai engineers and workers, who are part of our achievements.

Dung Quat deep-water port is the reason for many corporations to invest in Dung Quat EZ, he said. The modern invested port, 14-21 meters deep, is capable of receiving ships from 50,000 DWT to 200,000 DWT. Three general berths and five specialized berths are operational and 11 other specialized berths are under construction. In addition, Hoa Phat Dung Quat general port with three berths with a total length of 750 meters will be put into operation in 2020 to accommodate vessels of 50,000 DWT or even bigger. The designed port capacity is 5-6 million tons a year.

Mr. Jeon Hyun Jung, General Director of Dae Young E&C Co., Ltd., said his company is working to invest in Binh Hoa - Binh Phuoc Industrial Park project. There are two reasons for us to invest in Dung Quat Economic Zone. First, it has a relatively large land fund for industrial development. Second, the traffic system is convenient, accessible to National Highway 1A, Danang - Quang Ngai Highway, North-South Railway and various artery waterways. Besides, trunk roads inside Dung Quat EZ have been synchronously invested. Specially, Dung Quat EZ is located next to Chu Lai Airport, thus reducing travel time for investors to reach Dung Quat EZ.

Another appealing advantage of Dung Quat EZ to investors is VSIP Quang Ngai. With clean land fund and comprehensive infrastructure system, the park is becoming a reliable address for investors, especially foreigners. Up to now, VSIP Quang Ngai has attracted 23 projects, including 22 FDI projects and one domestic project, with a total investment of over US$760 million.

In addition, the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority has continuously improved administrative procedures and reduced the service time for investment procedures. Mr. Nguyen Minh Tai, Director of the Authority, said that, every staff is well aware that investors are entities to be served and supported before, during and after being licensed.

New investment rolls

The opportunity to catch investment flows from Korea in the coming time is very positive. Currently, Dae Young E&C Co., Ltd is completing procedures for submission to the Prime Minister for permit to invest in Binh Hoa - Binh Phuoc Industrial Park project. The 249-ha plus project gives priority to such industries as jewelry and gemstone processing, handicraft, petrochemical and paint industry, automobile parts manufacturing and assembling, apparel and footwear. Once put into operation, with the vast land fund and synchronous infrastructure, this project will exert a pull to Korean investors into Dung Quat EZ.

Along with that, in January 2019, Korea Trade-Investment Promotion Agency (KOTRA) - an agency under the Ministry of Trade, Industry and Energy of Korea - set up a representative office in Da Nang City. This move will help central provinces in general and Quang Ngai in particular to further affirm open cooperation and commitment to support Korean investors and businesses. Besides, with its voice and experience, KOTRA will pave the way for many Korean businesses to economic zones and industrial parks in the central region of Vietnam in general and Dung Quat EZ and Quang Ngai IPs in particular.

According to the report by the authority, in the year to date, having been recommended by KOTRA, many Korean investors have come to survey and seek investment opportunities in Dung Quat EZ and Quang Ngai industrial parks. For example, Dae Young E&C Co., Ltd and Kyung Woo EnC Vina Co., Ltd came to study investment in solar power plants. Or, LEOSCO International Limited, which specializes in manufacturing and exporting high-class garments and stuffed toys, surveyed factory investment in Dung Quat EZ.

Every year, apart from domestic investment promotion programs, Quang Ngai province leads delegations to meet investors in Korea. Recently, in mid-July 2019, a delegation, led by Secretary of the Provincial Party Committee Le Viet Chu met strategic investors in Korea.

Dung Quat EZ and Quang Ngai IPs have attracted 336 projects with a total registered investment capital of more than US$12.699 billion, including 57 FDI projects (over US$1.7 billion) and 279 domestic projects (VND216,708 billion) by the end of October 2019.

Speaking of orientations on FDI attraction from Korea, Mr. Nguyen Minh Tai added that prioritized areas for Korean businesses include petrochemical, chemical, energy (gas-fueled electricity), automobile manufacturing, industrial zone infrastructure development and operation, mechanical engineering, supporting industries for the automobile industry, garment, footwear, and high-tech agriculture.

“Quang Ngai province as well as the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority look forward to intensifying cooperation with Korean investors and we are committed to creating favorable conditions for them through many preferential policies on land lease, infrastructure, administrative procedures, worker training and recruitment to do successful business in Dung Quat EZ and Quang Ngai industrial parks,” he affirmed.

Nhu Y