A cargo ship loads cranes at a port in Dung Quat Economic Zone in Quang Ngai province. (Photo courtesy of Doosan Vina) Head of the managing board of the zone Ha Hoang Viet Phuong said the adjustmentof the master plan on the zone, which was approved by the Prime Minister inFebruary, will develop it as a multi-sector industry and sea-based economycentre on a total area of 45,332ha, including 1,492ha of Ly SonIslands.
He said the zone will promote good infrastructure, and prioritise renewableenergy and circular economy as magnetic factors to potential investors.
“The plan will help the Dung Quat EZ develop on three key pillars –industry, tourism and service – focusing on the core industries of oilrefining, steel and shipyard building with the advantage of a deep-seaport system,” Phuong said.
“Five function areas have been assigned as eco-urban, logistics, airport andsea port service, supportive industries and high-tech farming. Ly Son Islands,30km off the coast of Quang Ngai, will serve as a unique tourismattraction hub,” he said.
Phuong said the master plan also includes preferential policies forcalling on more key investors in high-tech industries.
Investors will enjoy a 10% tax rate for 15 years, a four-year tax exemption anda 50% cut in income tax for the following nine years, he said, adding afive-year free import tax on materials and semi-finished products used inproduction will be reserved for investors.
According to the latest report from the Dung Quat EZ, 346 projects have been ineffect with nearly 18 billion USD of investment capital, including 58foreign direct investment (FDI) projects worth 1.84 billion USD.
Phuong said domestic investors also poured 16 billion USD into 288 projects –88% of total investment in projects.
“250 operational projects created an industrial production value of 116trillion VND (4.6 billion USD) in 2022 – 113 times as much as the figure 20years ago,” he said.
“The zone also earned export turnover of 1.9 billion USD in 2022,contributing 223 trillion VND (8.9 billion USD) to the State’s budget in2010-22. It also accounts for an 80% share in the provincial annual budgetand 65,000 jobs for workers in Quang Ngai and neighbouring provinces,” headded.
The head of Dung Quat EZ managing board also highlighted the Vietnamm-SingaporeIndustrial Park (VSIP) and RoK heavy industries Doosan Enerbility Vietnam(Doosan Vina) as two successful investment projects in the province.
Doosan Vina has invested 315 million USD in developing a 101haindustrial complex since 2006, earning revenue of 424 million USDfrom giant industrial equipment exports, he said.
Meanwhile, VSIP – an iconic cooperation of Vietnam and Singapore – had an investmentcapital of 337.8 million USD on 660ha, reserving industrial production spacefor projects in the fields of leather, textiles and garments,foodstuffs and beverages, creating more than 13,500 jobs for localresidents and experts.
Hebei Xindadong Textiles Company of mainland China was seen as the biggestinvestor in the park with 38 million USD, followed by Hong Kong shoemakerProperwell, and Singapore’s UMW Equipment Systems – an industrial and heavymachinery plant.
A deep seaport system (19 to 21m deep) is seen as an advantage for investors asit could handle cargo vessels with 250,000 Deadweight tonnage (DWT), and ithosted 40 million tonnes in 2022.
Binh Son oil refinery is now refining 85% of domestic crude and 15% of crudeimports, and the Dung Quat Refinery upgrading and expansion project was builtwith an investment of 1.8 billion USD in its second phase.
The expansion of the Dung Quat Refinery will help increase capacity of therefinery plant from 6.5 million tonnes of crude oil to 8.5 million tonnes peryear.
The Dung Quat EZ has been bolstering connections with the Chu Lai Open EconomicZone in Quang Nam along with the deep sea ports and airport systems of thetwo neighbouring provinces.
In early June, Dung Quat EZ granted an investment licence toMesser, an industrial gas company from Germany, with an investment of 133.3 millionUSD to build a plant on 7.24ha./.
VNA
