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Van Phong Economic Zone Asserting Dynamic Role in Industrialisation and Modernisation Process

Date: 5/14/2013 8:21:01 AM

With the rising efficiency of investment attraction, boosted by many large-scale growth-driving investment projects, Van Phong Economic Zone has quickly become a driving force for economic and social development, and national defence and security in Khanh Hoa province and the south central region. Mr Nguyen Trong Hoa, Director of Van Phong Economic Zone Management Board, said: “Defining Van Phong Economic Zone as one of three key economic zones in the province, the Provincial Party Committee, the Provincial People’s Council and Provincial People’s Committee of Khanh Hoa have issued a lot of resolutions to mobilise investment capital for these zones and Van Phong Economic Zone in particular". Kim Bang reports.

Could you highlight potential and advantages as well as the importance of Van Phong Economic Zone for the socio-economic development of Khanh Hoa province in particular, and Vietnam in general?

The advantage of Van Phong Economic Zone is Dam Mon, the only bay in Vietnam with an ideal depth for building a sea port to receive colossal modern ships in the world. The southern part of Van Phong Bay is the deep sea and has many other favourable conditions for building industrial ports at the service of petrochemical industry, shipbuilding industry, power industry, oil and gas services. Besides, Van Phong Bay has a temperate climate, unspoiled natural landscape, diverse natural ecosystem for the development of maritime tourism and fishery.

Given its potential and advantages, the Van Phong Economic Zone is planned to be a multi-sectoral economic zone, which consists of an international container transshipment terminal and petrochemical complex. The nuclei of Van Phong Economic Zone are industry, tourism, service and fishery. According to the Prime Minister’s Decision 1353/QD-TTg ratifying the Vietnam Coastal Economic Zone Planning to 2020, Van Phong Economic Zone together with Vung Ang Economic Zone (Ha Tinh province) is the gateway to the sea and a key cooperation point for East-West and North-South Economic Corridors.

What are remarkable results in investment promotion and attraction of Van Phong Economic Zone?

Before the Van Phong Economic Zone was established, the zone attracted 20 projects with a total registered capital of US$335.54 million, mainly small-scale projects. After the economic zone was set up, it has to date housed 106 investment projects with a combined investment capital of US$13.8 billion, of which 26 projects have been put into operation with an aggregate disbursed capital of US$183 million. As we count, after six years of establishment, the number of investment projects grown by 5 times and the amount of capital leaped nearly 50 times. Some large-scale projects are under construction like Van Phong petroleum bonded warehouse and Ninh Thuy cement distribution terminal. These projects will build the foundation for the economic zone to make progress in the future.

Van Phong Economic Zone was founded just 6 years ago. Compared with other economic zones in central region like Dung Quat and Chu Lai which needed over 10 years to begin shaping development, Van Phong made impressively positive starting results, even in the face of prolonged economic crisis.

Despite being rated positively, these initial results still fell short of initial expectations of the Government. So, what will the Management Board do to overcome these shortages?

The economic downturn has adversely affected investment attraction and licensed project implementation in the economic zone. The number of projects attracted were significantly reduced during this period, the progress of licensed projects slowed down, and even some big projects had their investment licences revoked. The actual development has never caught up with the economic zone development plan. The legal system for EZ development is inadequate, overlapping and incomplete. Infrastructure remains poor while fundraising for improvement is difficult.

To deal with these weaknesses, we define and focus support for driving projects which will generate ripple effects in the economic zone, particularly infrastructure construction, to maximise the efficiency of capital attracted in the tough time. Regarding investment attraction, we choose demonstrably capable investors with proven financial capacity and investment experience, to avoid inactive projects. We also look for the opportunity to reach investors through investment promotion agencies, diplomatic missions, and successful investors in the locality. We also focus on accelerating administrative reform and support investor to quickly resolve difficulties and problems when they carry out their projects.

In addition, the Management Board advised the provincial authority and competent authorities to the Law on Economic Zone on the replacement of current decrees on this effect to create a common legal framework with higher legality and to end overlapping, contradictory legal documents.

Could you talk more about the development orientations of Van Phong Economic Zone?

For the northern part of Van Phong (Van Ninh district), the province is working on an administrative and economic special zone project, in accordance with the Politburo’s guidance, to report to the Prime Minister and relevant bodies for approval. In the southern part of Van Phong (Ninh Hoa town), the province promotes investment into functional areas, specifically seeking investors in petrochemicals, shipbuilding and marine economy or Ninh Hai Industrial Complex. At the same time, Khanh Hoa will complete infrastructure in southern Van Phong area, especially roads to SXT Shipyard, infrastructure in Xom Quan and Ninh Thuy resettlement zones, and Nam Van Phong water supply system.

(Source:vccinews)

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