Dung Quat EZ to License Two Big Foreign-invested Projects in May

 

The Dung Quat Economic Zone Management Unit in central Quang Ngai province will give licenses to Taiwan’s ‘Tycoons’ and South Korea’s ‘Doosan’ groups in May this year to pour US$1.24 billion of investment into the zone, according to State media.

 

The Taiwanese group will be allowed to carry out a $1.04-billion steel ingot project in the zone to produce five million tons of ingots each year while the South Korean investor will build a $200-million factory to manufacture power plant equipment.

 

The two new projects will help raise the zone’s total registered investment to $4.39 billion by that time.

 

As at the end of April this year, the zone has licensed 64 projects with combined registered capital of $3.15 billion, including a $2.5-billion Dung Quat oil refinery plant by the Vietnam Oil and Gas Corp. (PetroVietnam) and a $300-million Dung Quat shipyard by the Vietnam Shipbuilding Industry Corp. (Vinashin).

 

The Dung Quat Economic Zone now offers investors many incentives, such as a five-year exemption of import duties on materials, raw materials and semi-finished products; a preferential corporate income tax of 10% for first 15 production years and a 50% tax reduction for nine years thereafter (hi-tech projects would enjoy a corporate income tax rate of 10% for the entire project); and a 50% reduction in income tax for high-income earners.

 

The zone covers 13,000 ha in the central provinces of Quang Ngai and Quang Nam, and is close to National Highway 1A and the north-south railway network. It also has a seaport 90 km from an international sea route and Chu Lai Airport is located only 15 km away.