Thanh Hoa province-based Nghi Son Economic Zone (Nghi Son EZ), about 200 km south of Hanoi, with major road and railway links and a deepwater seaport supporting ships up to 30,000 DWT, is seen as an economic locomotive in the southern part of the Northern Focal Economic zone. Nghi Son is also a bridge linking the central northern region with southern Laos and north-eastern Thailand.
Nghi Son EZ, set up under prime minister’s Decision 102/2006/QD-TTg dated May 15, 2006, plays an especially important role in the socioeconomic development of Thanh Hoa Province and Vietnam as a whole. The government has determined to build and develop Nghi Son EZ into a general multi-sector and multi-field economic zone, with major industries including petrochemical, high-grade steel laminating, manufacturing, engineering, ship repairing and building, electrical, building material, consumer goods production and export processing industries, at the same time building and operating Nghi Son seaport. This combination will help provide high quality, competitive products and services to regional and international markets.
The importance of Nghi Son Economic Zone is rooted in its location. Nghi Son is one of few locations in northern Vietnam with prime conditions to build a deepwater seaport - a top requirement for heavy industry projects like petrochemical, steel lamination, shipbuilding and repairing, and electrical production. The port serves as a gateway to the rest of the world. The Government supports construction of an airport in Nghi Son to promote the EZ’s development. At present, Thanh Hoa Province authorities are working with the Ministry of Transport on a survey to determine the location for the airport. The Japan International Cooperation Agency (JICA) appraised Nghi Son EZ potential as follows: “… located in the southern Thanh Hoa Province near the coast, Nghi Son holds great potential to build a deepwater seaport to a depth from 15 m to 18 m. Investment in a large cement plant, a specialised seaport and complete infrastructure for the EZ will enable Nghi Son to become a modern industrial hub of the central northern region and the entire country. This will be the gateway into the northern economic triangle.” Nghi Son is also endowed with a bay, with beautiful islands. These are prime locations for developing eco-tourism.
Another geographic advantage of Nghi Son is its proximity to one of Vietnam’s largest limestone reserves, serving the construction building production industry. The locality also has an abundant supply of labour.
To attract investment projects into Nghi Son, the Government provides special incentive policies applied to economic zones in general and Nghi Son in particular. Accordingly, investors will be given the most incentives by the State and enjoy a favourable business environment.
With endless efforts persuading and calling for investors, Nghi Son Economic Zone has attracted several big projects as follows:
- Two-phase Nghi Son cement plant project: capacity of 4.3 million tonnes of cement a year and investment capital of US$230 million.
- Song Thanh cement plan project: capacity of 12,500 tonnes of clinker a day and investment capital of US$250 million.
- Nghi Son dockyard (invested by Vinashin Business Group): building ships with loads up to 50,000 DWT and repairing ships with loads of up to 100,000 tonnes, investment capital VND600 billion.
- Paper material processing factory invested by Taiwan’s INOGREEN Co. and Thanh Hoa Co. Ltd.
- 1,800-MW Nghi Son thermal power plant developed by the Electricity of Vietnam. The first phase, with 600 MW capacity, will commence in September 2007.
Apart from projects already underway, Nghi Son EZ has adopted several other projects currently waiting for approval from authorities. Notable new projects include the infrastructure system project for the 250-hectare industrial zone in the west side of National Road 1A, the water supply project for Nghi Son EZ, the 60-hectare oil depot project, a general seaport for ships of 50,000 DWT, the project to produce glass fibres, and the golf course project.
In addition to investment incentive policies, Thanh Hoa Province spent VND100 billion (US$6.25 million) in 2006 and plans to disburse VND170 billion (US$10.62 million) in 2007 to develop infrastructure inside Nghi Son EZ. To date, most projects are underway like Wharf No. 2, East-West Road 2, Nghi Son EZ Authority headquarters, the re-settlement zones of Hai Binh, Truc Lam and Binh Minh, a breakwater system for Nghi Son port, and a road to Song Thanh cement plant. In the coming time, the province will kick off construction on other supporting projects like the water supply system, North-South Road 3, North-South Road 1B, East-West Road 2 (phase 2), Do Dua Bridge 2, resettlement areas, and passageway dredging for Nghi Son Port (phase 2).
Successful operation of Nghi Son EZ will make this coastal area into an economic locomotive of Thanh Hoa Province, as well as a nucleus for national economic development. With its potential and advantages, coupled with provincial authority leadership and the determinations of concerned people, Nghi Son EZ will certainly be an attractive and reliable destination for both domestic and international investors. (http://nghison.gov.vn)
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