Quang Binh Economic and Industrial Zones: Efforts to Attract Investment

9:59:47 AM | 1/15/2021

Despite numerous difficulties, Quang Binh province has mobilized resources for developing infrastructure in economic and industrial zones, accelerated administrative reform, and improved support services for projects to facilitate economic restructuring, enhance competitiveness and unlock local potential and strengths.

Vibrant development

Quang Binh province has been approved by the Government to build two economic zones and eight industrial parks. The economic and industrial zones are conveniently located as they are close to land and water traffic connections and lie within the East-West Economic Corridor that connects Southeast Asian countries to the East Sea.

Hon La is a coastal economic zone in the Nam Ha - Bac Quang key economic region. The economic zone has Hon La deep-water seaport for developing logistics services and international cargo transshipment for the East-West Economic Corridor that is constituted by Myanmar, Thailand, Laos and Vietnam. Lying on the National Highway 1A, it has a convenient traffic connectivity to water and ground transport modes.

Cha Lo Border Gate Economic Zone is an economic and urban center in the west of the province, connected to National Highway 12A, the economic corridor along Ho Chi Minh Road and Hon La Economic Zone. This is a cargo transshipment, import and export hub and a service center of the province with Laos and Thailand. The economic zone is well linked with its peers in the region such as Lao Bao Border Gate Economic Zone (Quang Tri province) and Cau Treo Border Gate Economic Zone and Vung Ang Economic Zone (Ha Tinh province).

Quang Binh also has eight industrial parks covering ​​more than 2,000 ha. The industrial zones are located near to input supply sources, North-South traffic routes for easy commodity transport and distribution.

By the end of 2020, Quang Binh province-based economic and industrial zones attracted 150 projects with a total investment of nearly VND58 trillion (US$2.5 billion), including three foreign direct investment (FDI) projects with a total registered capital of US$18.2 million. In 2020, despite the raging COVID-19 pandemic, local businesses had suitable solutions to run their business well. They made a total revenue of VND1,270 billion and employed nearly 5,000 employees, each of whom is paid VND6-7 million per month on average.

Creating a new posture and growth driver

In the 2016 - 2020 period, tenants in economic and industrial zones created production value of VND14,935 billion (US$650 million) and cargo export value of VND7,718 billion (US$335 million). Cargo throughput at Hon La Port reached 6,596 tons and trade value across Cha Lo International Border Gate was US$9.15 billion, an increase of 60%, the highest growth among border gates between Vietnam and Laos. Tenants in economic and industrial zones helped generate the driving force for economic growth in Quang Binh province.

However, compared with other localities in the country, the growth rate of economic zones in Quang Binh province did not come up to expectations. In order to motivate the development of local economic zones, in July 2029, the Quang Binh Provincial Party Committee issued Resolution 07-NQ-TU on fostering the development of Hon La and Cha Lo economic zones in line with National Highway 12A Economic Corridor to 2025, with a vision to 2030. On that basis, the Provincial People's Committee issued Decision 1919/QD-UBND to implement Resolution 07-NQ/TU to build Hon La into a general economic zone where industrial zones are attached to the sea, tourist areas are associated with unique tourism products, ports and non-tariff areas are associated with Hon La Port and urban residential areas; build Cha Lo Economic Zone into an economic and urban center in the west of the province, an international transshipment hub for Vietnam, Laos, Myanmar and Thailand through Cha Lo Border Gate; develop inter-regional economic and trade exchanges along the economic axis from Cha Lo Border Gate to the sea through National Highway 12A and Hon La Port to reach countries in the region and around the world. The promulgation and implementation of these guidelines will add new motivations for local economic zones to develop adequately in the coming time.

Diversifying investment resources in infrastructure development

In recent years, Quang Binh province has mobilized central and local funds for building and upgrading synchronous infrastructure in economic and industrial zones.

Particularly, the province has given priority to essential facilities like traffic, water supply and drainage, power supply, cargo transshipment area, border gate system to attract more investors to the province and boost trade across border gates. The Economic Zones Authority has also directed economic zone infrastructure developers to regularly maintain infrastructure systems in economic and industrial zones; regularly monitor and promptly solve infrastructure problems of tenants in economic and industrial zones.

Economic and industrial zones have focused on providing clean water and ensuring electricity and lighting systems for production and business, ensuring environmental sanitation, taking care of flower gardens and ornamental plants to create a green, clean and beautiful environment; strengthened inspection and protection of landscape and traffic infrastructure into construction units in economic and industrial zones; coordinated with relevant agencies to ensure security, order, safety and environment in economic and industrial zones.

In 2021 - 2025, Quang Binh will prioritize the investment fund for technical infrastructure projects in economic zones, including traffic system and resettlement areas in Hon La Economic Zone, internal roads in Cha Lo Economic Zone, commercial, service and urban residential clusters along National Highway 12A, such as Bai Dinh cargo transit and logistics service zone and Hoa Tien urban area.

The province will also continue to implement consistent solutions to strongly improve the investment environment, adopt policies to encourage and incentivize investment projects, and propose that the Government exempt and reduce taxes at a reasonable level and in a suitable time for priority industries and services. By taking advantage of all resources, especially private funding, the Quang Binh Economic Zones Authority will actively call for infrastructure investors, with priority given to water supply, water drainage, environmental sanitation and synchronous traffic connectivity with the external infrastructure; apply public-private partnership (PPP) investment form to step by step modernize sustainable technical infrastructure in economic and industrial zones.

In addition, Quang Binh will focus on calling capable investors with large-scale modern projects for Hon La and Cha Lo economic zones.

Stepping up administrative reform

In order to create favorable conditions for investors, the Economic Zones Authority has concentrated on boosting administrative procedure reform; reviewed and advised the Provincial People's Committee to reduce administrative procedures; improved the attentive and enthusiastic service of employees to investors. The authority has been always highly appreciated by the Provincial People’s Committee for strong administrative reform.

Currently, the authority has built up a database and updated information on investment laws; sought information about potential investors to entice them to the province; connected and recommended domestic and foreign partners about investment projects in economic and industrial zones; and upgraded the website with updated information, reports and topics on potential strengths in local economic and industrial zones.

The agency has also encouraged existing investors to recommend new ones, launched domestic and overseas investment promotion to draw capable investors; and closely coordinated with relevant bodies to assist investors to carry out investment procedures from establishment to operation.

Hon La Economic Zone

Covering 10,000 ha (8,900 ha of land and 1,100 ha of sea water) in Quang Trach district, Hon La Economic Zone is a key development hub of supporting industries under the Southern Ha Tinh - Northern Quang Binh Plan.

It consists of two main areas:

- Tariff area consists of three planned industrial parks (Hon La Seaport Industrial Park, Hon La II Industrial Park and Western Gate Industrial Park), port and port logistics service area, urban residential area, tourism service zone and administrative area, designed for supporting industries, power production, shipbuilding, cement production, glass manufacturing and other supporting industries.

- Non tariff area: Calling for service development investment in the planned area (​​40 ha). The business performance of the non-tariff area will be associated with the effective investment and efficient operation of Hon La Port designed to link with National Highway 1A, National Highway 12A, Cha Lo International Border Gate, Cau Treo Border Gate and Lao Bao Border Gate form an important gateway to the East Sea for ​​Southern Laos, Northeastern Thailand and the Mekong sub-region.

Cha Lo Border Gate Economic Zone

Located in Minh Hoa district with a total natural area of ​​53,923 ha.

One of nine key border economic zones invested by the Government in the 2016-2020 period;

An economic and urban center in the west of the province, a transshipment hub, an import-export center for goods and services in Central Laos, Northeast Thailand and the Mekong Sub-region.

Cha Lo International Border Gate is the largest of its kind between Vietnam and Laos, with a total export, import and transit value of US$1.2 billion in 2020 (US$1.5 billion in 2019).

The transit time to export and import ports of central Vietnam is 3-5 hours.

- The distance from Cha Lo Economic Zone to:

+ Hon La Port and Vung Ang Port (Ha Tinh): 145 km

+ Lao Bao Border Gate (Quang Tri province): 320 km

+ Da Nang Port: 430 km

- The distance from Hon La Economic Zone to:

+ Vung Ang Port (Ha Tinh): 36 km

+ Lao Bao Border Gate (Quang Tri province): 230 km

+ Da Nang Port: 340 km

 

No.

Industrial Park

Location

Planned area (ha)

 

Active tenants

Rentable area to date (ha)

Infrastructure

1

Tay Bac Dong Hoi IP

Dong Hoi City

 

66.32

18

0

Basically completed

2

Bac Dong Hoi IP

105

31

0

Basically completed

3

Hon La Port IP

Hon La EZ, Quang Trach District

110

18

1,2

Basically completed

4

Hon La II IP

177

4

102.76

Detailed plan approved. Waiting for infrastructure construction investment

5

Tay Bac Quan Hau IP

Quang Ninh District

300

5

133.4

Detailed plan for Phase 1 approved: 198 ha. Calling for infrastructure construction investment.

6

Cam Lien IP

Le Thuy District

450

5

437,84

Detailed plan for Phase 1 approved: 250 ha. Calling for infrastructure construction investment

7

Bang IP

450

1

424

Detailed plan for Phase 1 approved: 135 ha. Calling for infrastructure construction investment

8

Western Gate IP

 

Hon La EZ, Quang Trach District

122

72.6

Detailed plan approved. Calling for infrastructure construction investment

LIST OF PROJECTS SEEKING INVESTMENT FUNDS IN QUANG BINH PROVINCE IN 2021-2023

Duy Anh (Vietnam Business Forum)