Dung Quat EZ looks to develop ‘green and smart’ economy

The Dung Quat Economic Zone in the central province of Quang Ngai is being designed as a key ‘green’, ‘smart’ and sustainable industrial complex and a breadwinner for the country’s budget and the central province by 2045.
Dung Quat EZ looks to develop ‘green and smart’ economy ảnh 1A cargo ship loads cranes at a port in Dung Quat Economic Zone in Quang Ngai province. (Photo courtesy of Doosan Vina)
Quang Ngai (VNS/VNA) - The Dung Quat Economic Zone in the central province of Quang Ngai is being designed as a key ‘green’, ‘smart’ and sustainable industrial complex and a breadwinner for the country’s budget and the central province by 2045.

Head of the managing board of the zone Ha Hoang Viet Phuong said the adjustment of the master plan on the zone, which was approved by the Prime Minister in February, will develop it as a multi-sector industry and sea-based economy centre on a total area of 45,332ha, including 1,492ha of Ly Son Islands.

He said the zone will promote good infrastructure, and prioritise renewable energy 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 oil refining, steel and shipyard building with the advantage of a deep-sea port system,” Phuong said.

“Five function areas have been assigned as eco-urban, logistics, airport and sea port service, supportive industries and high-tech farming. Ly Son Islands, 30km off the coast of Quang Ngai, will serve as a unique tourism attraction hub,” he said.

Phuong said the master plan also includes preferential policies for calling on more key investors in high-tech industries.

Investors will enjoy a 10% tax rate for 15 years, a four-year tax exemption and a 50% cut in income tax for the following nine years, he said, adding a five-year free import tax on materials and semi-finished products used in production will be reserved for investors.

According to the latest report from the Dung Quat EZ, 346 projects have been in effect with nearly 18 billion USD of investment capital, including 58 foreign 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 116 trillion VND (4.6 billion USD) in 2022 – 113 times as much as the figure 20 years 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 in 2010-22. It also accounts for an 80% share in the provincial annual budget and 65,000 jobs for workers in Quang Ngai and neighbouring provinces,” he added.

The head of Dung Quat EZ managing board also highlighted the Vietnamm-Singapore Industrial 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 101ha industrial complex since 2006, earning revenue of 424 million USD from giant industrial equipment exports, he said.

Meanwhile, VSIP – an iconic cooperation of Vietnam and Singapore – had an investment capital of 337.8 million USD on 660ha, reserving industrial production space for projects in the fields of leather, textiles and garments, foodstuffs and beverages, creating more than 13,500 jobs for local residents and experts.

Hebei Xindadong Textiles Company of mainland China was seen as the biggest investor in the park with 38 million USD, followed by Hong Kong shoemaker Properwell, and Singapore’s UMW Equipment Systems – an industrial and heavy machinery plant.

A deep seaport system (19 to 21m deep) is seen as an advantage for investors as it could handle cargo vessels with 250,000 Deadweight tonnage (DWT), and it hosted 40 million tonnes in 2022.

Binh Son oil refinery is now refining 85% of domestic crude and 15% of crude imports, and the Dung Quat Refinery upgrading and expansion project was built with an investment of 1.8 billion USD in its second phase.

The expansion of the Dung Quat Refinery will help increase capacity of the refinery plant from 6.5 million tonnes of crude oil to 8.5 million tonnes per year.

The Dung Quat EZ has been bolstering connections with the Chu Lai Open Economic Zone in Quang Nam along with the deep sea ports and airport systems of the two neighbouring provinces.

In early June, Dung Quat EZ granted an investment licence to Messer, an industrial gas company from Germany, with an investment of 133.3 million USD to build a plant on 7.24ha./.

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