The Haiphong City-based Dinh Vu Industrial Zone, with its favourable geographic locations only 7 km from HaiPhong Port and 3 km from Cat Bi Airport and Highway No. 5, has brought new success to the port city as well as the northern key economic zone. However, less known is the fact that Dinh Vu has experienced waves of ups and downs to gain these spectacular achievements.
A 10-year story:
The story was initiated by municipal leaders and foreign investors like AIG Group and IPEM Company. In 1997, they established Dinh Vu Development Joint Venture Company to turn the 1000-ha wetland area into a modern economic zone including an industrial park, liquid cargo terminals, commercial and residential areas and other public utilities. To realise this plan involved a hard journey with objective and subjective obstacles. At that time, Hai Phong Port was not properly taken into consideration. The dredging and upgrading of passageways for ships remained irresolvable; hence, an actual threat was that Haiphong City could lose its locomotive position in the development of the northern key economic zone. In addition, Dinh Vu Industrial Zone encountered difficulties in developing traffic, electricity and water systems on such a large area. “But success will not come to those who lack ambition and patience, which possibly brought in today’s prosperous Dinh Vu,” said Filip Martens, Chairman and CEO of Dinh Vu Development Joint Venture Company, the investor of Dinh Vu Industrial Zone.
Millions of cubic metres of salty sand were brought in from 30 km offshore to fill the industrial zone. Thousands of metres of dykes were built to manage flooding and soil erosion. Other infrastructure items like power, road and internet systems were built in the zone. Total investment cost for this project reached $50 million. Additionally, the determination of Haiphong City’s Government to create the most favourable conditions for investors and retain its locomotive position in the development of the northern key economic zone created consensus and confidence among enterprises and investors.
A new face:
All efforts to overcome difficulties were well worth it. In early January 2007, Dinh Vu Industrial Zone introduced the detailed plan approved by the government. Under the design, 950-ha Dinh Vu Industrial Zone is an integral part of Dinh Vu Economic Zone project, which also includes a 130-ha deepwater port and 65-ha housing area.
Dinh Vu IZ has an especially unique petrochemical zone. With a 10,000-tonne pier for liquid cargo handling, two 300-tonne barges, a modern system of a three-layer pipe stands capable of supporting the installation of 29 pipelines and serving 15 different projects, and a 50-ha tank area, Dinh Vu liquid cargo port is able to accommodate heavy-load ships.
To date, Dinh Vu IZ houses 17 investors including world-leading Chevron, Proconco, PetroVietnam Gas and Vinachem, which invested US$368 million on nearly all 164 ha area of the first phase.
In the first quarter of 2007, Dinh Vu IZ attracted five new projects worth US$250.3 million in total. In addition, the industrial zone is likely to house new tenants who pledge to bring in US$144 million investment capital. Many Japanese and European investors are studying the investment possibilities in Dinh Vu IZ. This is the solid groundwork for the second phase development of the IZ, with 330-ha area of land, which will take around three years.
Addressing the 10-year anniversary celebration, after receiving the third-class Labour Order, Mr Trinh Quang Su, Mayor of Haiphong City, said: “Dinh Vu Industrial Zone plays a crucial role in the development of the city. I think the second phase of the industrial zone will bring prosperity to the entire northern economic zone.”
Le Anh
Vietnamese
