Deputy head of the zone’s management board Nguyen Van Binh said the plan had been approved by Prime Minister Nguyen Tan Dung.

Binh told that the zone was expected to contribute 32 per cent of the province’s total production value by 2020 and around 67 per cent of commerce and services.

The special zone will be advertised to attract official development assistance (ODA) and businesses to develop its infrastructure.

The zone has already attracted 360 enterprises, accounting for 40 per cent of those in the province.

“More than 50 projects have received a total investment of US$200 million, already providing 3,500 direct jobs for local people and 3,000 indirectly,” Binh said.

The zone’s total trade turnover of $245 million ranked the first among border gates in Viet Nam. Industrial production last year was valued at VND430 billion ($20.9 million), accounting for 40 per cent of that in the province.

“The area had no factories before the zone was established. Industrial production value has increased yearly 17 per cent since 2008,” Binh said.

He added the establishment of the zone had also helped improve Huong Hoa District’s socio-economic development.

“The district’s growth rate has been 17 per cent annually, which is one of highest among mountainous districts. Yearly average income increased from VND17 million ($829) in 2001 to VND55 million ($2,680) last year.”

The special zone covers an area of more than 15,800 square metres and includes two towns, Lao Bao and Khe Sanh, and Huong Hoa District’s five communes of Tan Thanh, Tan Lap, Tan Lien, Tan Hop and Tan Long.

It is also within a strategic area for national defence and security.

It will be divided into four main parts, including the 1,700ha Lao Bao Town focusing on developing trade, export-import services and construction materials.

The 1,340ha Khe Sanh Town will focus on trade and tourism services, agricultural and mechanical production.

An area along National Highway 9 will be used for a border gate, industrial parks, warehouses, vocational training schools, cultural, medical and administrative centres, residential areas and parks. An ecological area for forestry development and eco-tourism will also be developed.

The master plan also maps out development for infrastructure of transport, drainage, waste treatment and solutions to reduce bad effects on the environment.

It also outlines the building of a vocational training school for ethnic people.