Dung Quat Economic Zone: Giving Highest Incentives for Investors
Currently, provinces and cities in the central region are competing to attract investors. Amid such a fierce competition, how does Quang Ngai province set it apart?
Quang Ngai province has made much effort to improve the investment environment to attract more foreign investors to the province in general and to industrial zones and Dung Quat Economic Zone in particular.
To date, it is certain that Dung Quat Economic Zone is the most successful economic zone across the country. This success is resulted from the close guidance and support of the Government, ministries and central agencies. At present, Dung Quat Economic Zone is allowed to apply the highest incentives in Vietnam regardless of land or tax. At local level, we provide further support for investors like human resource training.
Besides, Quang Ngai grants preferential treatments to investors like reduced import tariffs, corporate income tax, personal income and especially low rent.
In 2012, the province attracted many large-scale projects like VSIP industrial, residential and service complex (VSIP 5). Why did Vietnam - Singapore Industrial Park Co., Ltd choose Quang Ngai province for its project?
Dung Quat Economic Zone and other industrial zones in the province are currently housing 22 FDI projects. We highly appreciate the role of investors, especially Vietnam Singapore Industrial Park Co., Ltd, the investor of VSIP 5. The development of VSIP is totally matching the Quang Ngai development strategy towards 2020: Developing Quang Ngai into an industrial province with developed urban cooperation and high-quality human resources. Defining that VSIP 5 has all conditions we need for the development strategy, we attract it to the province.
Together with the Dung Quat thermal power plant, VSIP 5 is considered a "magnet" to exert a pull on big investors, helping the province to accelerate the industrialisation progress.
When it was under construction, VSIP 5 received most favourable conditions. For example, site clearance and land compensation was quickly completed with the participation of the government and the people. VSIP received the “clean land” in a very short time. Within just two months, we handed 160 ha of land to the investor and VSIP 5 started to take shape in early April 2013.
How has Dung Quat Economic Zone contributed to the socio- economic development of Quang Ngai province in particular and the central region in general?
The current area of Dung Quat Economic Zone is 10,300 ha but it will be expanded to 45,332 ha soon. This economic zone also consists of Saigon - Dung Quat Industrial Park, Tinh Phong Industrial Park, VSIP 5 Industrial Park, and other industrial parks we are planning to build. In 2012, Dung Quat Economic Zone contributed 36 percent to the province’s GDP and 76 percent of its industrial output value.
In 2012, the provincial budget collected some VND19 trillion, of which Dung Quat Economic Zone contributed 86 percent, or VND16 trillion. Therefore, the position of Dung Quat Economic Zone in the Quang Ngai economy is enormous and decisive to the growth and development of the province.
What strategies and measures will Dung Quat Economic Zone take to become an economic development engine of the key central economic region in the coming time?
According to its development plan for the 2012-2015 period, Dung Quat Economic Zone is expected to draw US$13 billion of investment capital by 2015, of which US$8 billion would be disbursed at that time, pay VND16 trillion to the State Budget, generate 20,000 jobs, and handle 25 million tonnes of cargo. Hence, production value will expand 17 - 18 percent a year in this period.
Quang Ngai province will focus investment on developing Dung Quat Economic Zone into a general economic zone for various industries but driving industries will be petrochemical industry, chemical industry, mechanical engineering, shipbuilding and repairing, steel production, light industries. The province will also bring Dung Quat deepwater seaport and Chu Lai airport into full play. It will also build and develop Dung Quat difficulties into an industrial, urban, and service centre of the southern key economic region. This will be a key international exchange point for the province, the central region and the Central Highlands.
To achieve these goals, the province will enhance the quality of investment promotion activities, mobilise capital for infrastructure development in Dung Quat Economic Zone, raise the quality of planning, develop human resources, reform administrative procedures, create an attractive investment environment, satisfactorily carry out site clearance and land compensation.
