Chu Lai anticipates virtuous cycle

The central region’s Chu Lai Open Economic Zone hopes that large scale projects will trigger a chain of investments Photo: Le Toan

According to the Chu Lai Open Economic Zone Authority, South Korea’s largest garment and textile manufacturer Panko – is studying an investment plan in the economic zone, which it said to be similar to its investment in the southern province of Binh Duong.

The Quang Nam Provincial People’s Committee also reported that Hong Kong casino operator Chow Tai Fook Group was interested in investing $4 billion into an integrated casino and resort of asset management firm VinaCapital.

In addition to these projects, the local authorities are calling for investments into an electricity generation and gas treatment complex in the zone and negotiating with a Japanese car maker on a plan to develop the zone into the country’s automobile manufacturing hub.

“After 12 years of quiet development, foreign companies are increasingly showing their confidence in Chu Lai,” said Do Xuan Dien, deputy director of the Chu Lai Open Economic Zone Management Authority.

The lack of key projects was blamed on the lack of interest in Chu Lai among foreign investors, but this is set to change as the local authorities believed the zone would rapidly become a popular destination for potential foreign investors.

Chu Lai is located about 100 kilometres south of the central city of Danang. When establishing the zone in 2003, the government hailed it as a major driver for Quang Nam’s socio-economic development. However, the development of this zone has failed to meet expectations.

Statistics from the Chu Lai Open Economic Zone Management Authority show the zone attracted 94 investment projects with the total registered investment capital of around $1.4 billion over the past six years. Of which, 67 projects are operational, generating $345 million of export value in 2014 and creating over 1,000 jobs.

Chu Lai’s attractiveness has been dwarfed by its  neighbouring Dung Quat Economic Zone in Quang Ngai province. Established in 2005, Dung Quat is now home to 122 projects with $8.7 billion of the total registered investment capital.