Nghe An Economic Zone: Opportunities and challenges

The Prime Minister has signed decisions to set up eight economic zones, including Nghi Son in Thanh Hoa Province and Vung Ang in Ha Tinh Province. Nghe An Province, which is surrounded by these two provinces, is preparing to submit a project to set up an economic zone to the Government for approval. The objective of the project is to build a large economic, industrial, tourism service and investment centre of Nghe An Province and northern central Vietnam by incentive policies.

 

The proposed economic zone has an area of 18,842.49 ha, or 1.1 per cent of Nghe An’s area, a population of 124,654 people (in 2005), or 4.2 per cent of Nghe An’s population, and a density of 661 people/km2. This economic zone has a favourable location with railway, roadway and airway. Vinh Airport, 7km off the zone, will be upgraded into an international airport after 2010.

Architects have designed the Nghe An Economic Zone in the centre of international, national and regional transport systems, and in adjacency to Vinh City, which is growing into a largest centre in northern central Vietnam. The zone is also near Cua Lo Seaport. These facilities are also conditions to develop the Nghe An Economic Zone into a general economic zone, including industry, port, port service, agriculture, fishery, forestry, tourism, transhipment and others.

 

The above figures are only on paper. The opportunities are great but challenges are enormous. On the bright side, the factors for the planning of the EZ and momentums for the breakthrough of the EZ are the infrastructure condition of the region. At present, the future economic zone is taking shape in Nam Cam Industrial Zone and Cua Lo Port. Many projects here are invested by enterprises outside Nghe An. Cua Lo houses a plywood processing factory, Cua Lo Milk Factory, Lan Chau Tourism Project, Loc Chau New Urban Zone, Cua Lo Eco-tourism Zone and others. Meanwhile, Nam Cam IZ is accommodating Binh Minh Plywood Factory, and Phuc Thinh Limestone and Parite Processing Factory.

 

In the field of tourism, Bai Lu Investment and Business Joint Stock Company is developing Bai Lu tourism site with a total investment capital of VND770 billion (US$43.75 million), including VND270 billion in the first phase. This project has many important items: 3-star and 5-star hotels, Van Ly Truong Thanh Railway Station, golf course, helicopter landing, water-park, eco-tourism site and luxury tourism area.

However, if Nghe An wants the EZ to become an economic centre for the entire northern central Vietnam, the Nghe An Economic Zone needs another name. The identifier (Nghe An) should be replaced by another more popular one because the area of the zone is equal to only 1.1 per cent of Nghe An area. Many EZs don’t use provincial names as an identifier, like Chu Lai in Quang Nam Province, Vung An in Ha Tinh, Nhon Hoi in Binh Dinh and Chan May in Thua Thien-Hue.

Functionally, Nghe An EZ is similar to other EZs nationwide (Chu Lai, Nhon Hoi and Hon La); hence, it will face difficulties in attracting investment because it is a latecomer. Thus, Nghe An EZ should specify more details to attract investors, like Nghi Son EZ (Thanh Hoa) for petrochemical and steel production, Vung Ang EZ for steel lamination and ship repair.

 

In addition, the EZ will encounter difficulties in site clearance because the zone stretches through many districts. Furthermore, projects in the EZ will be provided more incentives white the outsiders won’t have, which may lead to seriously negative impacts in the socio-economic development. District governments are also wondering about the administrative management methods as well as investment management in the EZ. These require managers to publicise the planning and collect people’s consent to set up the EZ.