Attracting Investment for All Industries, Led by Deep-Water Seaports and Renewable Energy

8:43:27 AM | 8/25/2021

With an important strategic position in the coastal economic corridor of the Mekong Delta, Dong Hai district of Bac Lieu province has become a major investment destination as it has attracted up to US$50 billion of foreign direct investment (FDI) in 25 years, which mainly focused on renewable energy and deep-water seaports that subsequentially boost the industrial economy not only in the Mekong Delta but across Southeast Asia and the Asia - Pacific.

Upgrading transport infrastructure to attract resources for deep-water seaport construction

Designed to be one of two very important deep-water seaports that are not only vital to economy and shipping but also to safety and security in the East Sea, Ganh Hao deep-water seaport (Bac Lieu province) together with Tran De Seaport (Soc Trang province) are currently locomotives to push economic development in the Mekong Delta. According to the Government’s Decision 1037/QD-TTg dated June 24, 2014 and Decision 77/QD-TTg dated January 13, 2020 approving “the task of making the master plan for Vietnam seaport system development in 2021 - 2030, with a vision to 2050”, Ganh Hao - Dong Hai deep-water seaport complex, covering 3.5 ha, 17-18km from the mainland, can serve ships of 30,000 - 100,000 DWT. Once completed, it will lie on the arterial maritime traffic route of Vietnam that links to Van Phong Port, Vung Tau Port, and Saigon Port and, at the same time, serves as an important transshipment hub on the Pacific shipping route of the global supply chain.

Currently, the Government is making full efforts to develop a synchronous transport network in the Mekong Delta, especially the Ha Tien - Rach Gia - Bac Lieu Expressway, which is expected to cost more than VND33 trillion and be completed by 2026. The expressway starts from Ha Tien City to Rach Gia City (Kien Giang), passing Long My district (Hau Giang province), Thanh Tri (Soc Trang province), and ending at Bac Lieu province where it connects district-level economic hubs like Ganh Hao town, Dong Hai district. In the first phase, the 225 km long, 17 m wide highway has four lanes for motorized vehicles to travel at a speed of 80 kph. The investment cost is estimated at over VND33.25 trillion, expected to be funded by donors and the Government's reciprocal budget. Indeed, Ha Tien - Rach Gia - Bac Lieu Expressway is in line with the southwest traffic development plan and the economic, social and cultural development strategy.

Leading Mekong Delta in FDI-funded renewable energy

Lying in an important strategic location comprised of a deep-sea bay - Ganh Hao Estuary plus a complete and synchronous transport system, connected to neighboring provinces via various types of traffic such as road, riverway and seaway, Dong Hai - Bac Lieu has affirmed its potential for renewable energy development - one of the most advanced technologies in the world - wind energy and the largest source of LNG-fired power source in the Asia - Pacific region.

At the 3rd Indo-Pacific Business Forum, Delta Offshore Energy, Bechtel Corporation, General Electric and McDermott signed an agreement on LPG-fired power projects in Dong Hai, Bac Lieu province with the value of using United States equipment and services of up to US$3 billion. Delta Offshore Energy LPG-fueled power project has an installed capacity of 3,200 MW capable of generating more than 20 TWh of electricity a year for Dong Hai district, Bac Lieu province and for Vietnam, helping to address the demand for clean energy with a competitive price.

With a total investment of up to US$50 billion in 25 years, the project is forecast to import three million tons of liquefied petroleum gas (LPG) a year. This is the first privately, even foreign, owned and operated LNG power project in the national electricity development master plan.

In addition to its potential for LPG power development, Dong Hai has also attracted a lot of large wind power projects costing billions of US dollars like Dong Hai 1 and Dong Hai 2 (being implemented) and a series of blueprint projects. This positioned itself as a hub of renewable energy technology in the Asia - Pacific region, thus helping promote economic development, urbanization, transport infrastructure development in the Mekong Delta.

Source: Vietnam Business Forum