Tan Tao Investment & Industry Corporation (ITACO) will start construction in May 2010, ITACO’s representative in Quang Ngai Mr Nguyen Van Tam said recently.

With an investment of VND 285 billion (over US$ 16 million), ITACO is to develop Pho Phong Industrial Zone (IZ), a 157-hectare-IZ, a key-large-scale complex in the Sourthen Quang Ngai province.

As licensed, ITACO is to build up the technical and social infrastructure for the effective exploitation of the project and to carry out investment, development, construction and business activities for the Residential Area and social amenities composed of houses, apartments, offices, restaurants, hotels, commercial centers…etc.

Additionally, upon completion, the Industrial-Residential and Service Complex will vehemently promote urbanization, industrialization, and tourism and service development in Duc Pho district as well as in the southern part of Quang Ngai province.

The project is to be implemented within 38 months.

The Binh Duong Province Department of Planning and Investment said that 24 industrial zones (IZs) in Binh Duong have leased 2,579 ha to businesses. Of these, 10 IZs – Song Than I, Song Than II, Dong An, Binh Duong, Viet Huong 1, Tan Dong Hiep A, Vietnam-Singapore I, My Phuoc I, My Phuoc II and Binh An – have leased more than 90 percent of ground. In so doing, they have contributed importantly to the provincial economic development in the direction of rapidly increasing production.

So far, 28 IZs have been planned on 8,950 ha of Binh Duong. Of these, six stand on 713.6 ha of Di An district, three on 654.6 ha of Thuan An district, nine on 4,113 ha of Ben Cat district, three on 1,751 ha of Tan Uyen district and seven on 1,717 ha of the Industrial-Service-Urban Complex.

More than 300 domestic and foreign businesses pledged to pour a total of VND24,677 billion into the Central Highlands while attending a regional investment promotion forum in Dak Lak province on September 5.

Leaders from Kon Tum, Gia Lai, Dak Lak, Lam Dong and Dak Nong provinces handed over investment certificates worth VND8,528 billion to investors. They also signed an agreement with various economic groups, State corporations, businesses and banks to implement 30 investment projects totalling nearly VND16,150 billion in their localities. These projects mainly focus on infrastructure construction, paper production, power generation, rubber plantations, coffee processing, steel production, tourism and healthcare services.

In his opening speech, Minister of Public Security Le Hong Anh, who is head of the Steering Board for the Central Highlands, said that the region has great potential for socio-economic development, citing its abundant natural resources such as land and minerals, and breathtaking scenery for tourism. He also confirmed that the region holds a special position in the national economy and defence.

He noted that the Party and State have so far invested a great deal in the region to improve local people’s well-being and narrow the development gap with the lowland region. Thanks to intensive investment and efforts by local people, the Central Highlands has achieved an annual GDP growth rate of more than 10 percent in recent years.
“Such development has yet to match the region’s great potential,” said Mr Anh. “The purpose of this forum is to realise its potential to attract investment, develop the economy and improve people’s living conditions.”

It was reported at the forum that the Central Highlands has established commercial farming areas for key products such as coffee, rubber and pepper, while building basic technical infrastructure to serve its socio-economic development. It has gradually tapped its potential for developing hydro-power, mining and agro-forestry processing industries.

However, the region finds it hard to lure investors as its potential has not been fully tapped. Between 2001-2008, the region only attracted VND109,000 billion in combined investment capital, an equivalent to just 4 percent of the country’s total.

Mai Van Nam, deputy head of the Steering Committee for the Central Highlands, said the region considers investment promotion a driving force behind its development, especially for infrastructure construction.

“We will work closely with the five provinces and investors to increase the efficiency of investment in the region by continuing to accelerate administrative reform and create a favourable and healthy business environment in line with the international norm,” said Mr Nam.

He said that his steering board is working with the Ministry of Planning and Investment on a number of special incentives to be offered to investors. These proposals will be submitted to the PM and, if they are approved, they will turn the Central Highlands into an attractive investment destination.

Taking the floor, Deputy Prime Minister Truong Vinh Trong proclaimed the Central Highlands as a goldmine and called on domestic and foreign businesses to invest in the region for mutual benefit. He asked the five provinces to fulfil their commitments to investors and assured them that the government is willing to work closely with the provinces and investors to iron out any snags.

The five provinces introduced 120 projects with a combined investment capital of approximately VND100,000 billion (US$5 billion) to businesses at the forum. Lam Dong province topped the list, with projects valued at VND85,838 billion, followed by Dak Lak (VND5,153 billion), Kon Tum (VND4,761 billion), Dak Nong (VND2,134 billion) and Gia Lai (VND1,918 billion). (NREN)

Ky Anh – a land of perfect natural beauty is located in the South of Ha Tinh Province. This land area is well known with Hoanh Son Quan and Ngang pass which is reflected in lyrics, poems and legends. Ky Anh have full favorable conditions in terms of forest, flats and sea potentiality to develop economic comprehensively.
Vung Ang Economic Zone extends 22.781 hectares, comprising 9 communes of Ky Nam, Ky Phuong, Ky Loi, Ky Long, Ky Lien, Ky Thinh, Ky Trinh, Ky Ha and Ky Ninh in Ky Anh district, Ha Tinh province. Its Northern and Eastern parts look out to the Eastern Sea (South China Sea); it borders Quang Binh province to the South and communes of Ky Khang, Ky Tho, Ky Hai, Ky Hung and Ky Anh Township to the West. It is located on favourable topography as it leans its back on the mountains, looks its face to the sea, is about 60 km far from Ha Tinh province and Thach Khe iron mine to the North; it has Vung Ang – Son Duong deep water port complex which can accommodate vessels and ships between 50,000 and 150,000 deadweight tonnage (ships between 50,000-150,000 dwt); it locates on the North -South traffic axis and the East – West Economic Corridor. All of these are favorable for development.

The Vung Ang Economic Zone has a large land fund appropriate for industrial and urban development; in addition, its diversification in terms of topography is potential for the development of trade, services, eco- tourism, convalescence, and especially sea travel and beach tourist services.

Through National Highway No.1A, Ho Chi Minh Highway, and North – South railways, Vung Ang Economic Zone can be economically linked to all regions throughout the country. Taking the National Road No. 8A and 12A connecting to Ho Chi Minh Highway and Cau Treo and Cha Lo international border gates is the shortest route from a Vietnam’s seaport to areas in the Central regions of Lao PDR and provinces in the Northeastern region of Thailand, which is very favourable for the expansion of economic cooperation and development in the region. From Vung Ang – Son Duong deep-water port, taking the international maritime route, it is quite easy to get to countries in South Asia, North America, and Europe.

Vung Ang Economic Zone will be developed into a multifunctional, multi-sectored one with the following focuses:
- Development of Metal refining industry (metallurgy industry) associated with the advantages in terms of natural resources, material sources (Thach Khe iron ore, Titanium, Manganese …), industries of mechanics, motor producing, consumer goods production, electronics, construction materials, ship building and repairing, labor consuming industries and other export oriented ones (which an area of 3000 hectares planned).
- Being a nationally huge center of thermo-electricity with its total generation capacity of 3600 MW located in the Central Region of Vietnam (At present, the construction of the first factory of 1200 MW has been started).
- With the advantages of a deep seaport, that is no deposit, to be out of the wind and considerable land fund available (about 1000 hectare) for construction of ports and post port services, it is very favorable to synchronously develop Vung Ang – Son Duong seaport complex. A step- by -step investment and an effective exploration of 27 existing port wharves in Vung Ang port and 30 wharves in Son Duong seaport will create favourable conditions for easily accommodating vessels and ships between 50,000 and 150,000 deadweight tonnage. In additions, with the development of port services and maritime transport services, Vung Ang will become an important gateway to the sea for the North Central Region of Viet Nam, Laos, Thailand and other countries in the region.

- Together with the development of industries and port services, it will give priority for the development of trade, services, import – export, finance, banking… promotion of investment in eco-tourism (green forest, lake, gulfs…), beach tourism in Ky Ninh, Deo Con, Ky Nam – Ngang Pass (Deo Ngang). This place has been a tourism linkage point within the province and in the North Central region of Vietnam.

Developing the new urban area in Vung Ang in connection with Ky Anh township and the boosting of investment and development velocity of the Economic zone so that by 2015, it will have become a modern urban area, a city of industry, tourism and services having close linkages with other economic zones and urban areas in the region, turning it into an important international linkage point contributing considerably to economic development of the Central Region and whole country.

Two industrial zones, HCMC-based Dong Nam IZ and Phuoc Dong Boi Loi Urban IZ in the southern province of Tay Ninh, both owned by the Vietnam Rubber Group as a project holder, will be available to receive investment from September this year, announced the Department of Foreign Investment and the Vietnam Rubber Group at a conference to make preparations for trade promotion program on August 6^th.

Accordingly, the Dong Nam IZ, built on a total area of nearly 340 hectares in Cu Chi district, HCMC, will focus on machinery manufacturing, information technology, medical, chemicals and rubber, while the Phuoc Dong Boi Loi Urban IZ, is located on an area of 2,190 hectares in Go Dau and Trang Bang districts, Tay Ninh province.

Source: TTO

The Dai An Joint Stock Company and its joint venture partners, including Germany’s Bosch and South Korea’s Kefico, on July 24th, signed an agreement to build a hi-tech car parts factory in the northern province of Hai Duong.

Accordingly, the US$60 million project will be built on a total area of 10 hectares in Dai An industrial zone in Hai Duong by Kefico and Bosch.

It is expected that, once the factory comes into full operation, it will help create jobs for around 800 local workers. The US$523 million Dai An industrial zone has so far attracted as many as 35 investment projects from 10 countries and territories.(VNBusinessNews)

Ha Noi People’s Committee chairman Nguyen The Thao spoke to Dau Tu (Vietnam Investment Review) about measures to attract more foreign direct investment (FDI) to the capital city.

The number of FDI projects licensed by Ha Noi has dropped rapidly since the beginning of this year in terms of both value and volume. What are the reasons?

Impacts from the global economic crisis was the main reason. All localities, not just Ha Noi, have encountered difficulties in attracting FDI. In the first six months of this year, the city granted licenses to 150 projects with a total capital of US$172 million, equivalent to 94 percent and 15 percent in the number of projects and value of last year, respectively. The total capital disbursement was estimated at $250 million, down 23 percent.

How will Ha Noi attract FDI when the global economy starts to recover?

The city has mapped out plans to attract more FDI when the global economy starts to recover. Ha Noi is finalizing a plan to create hi-tech industrial zones to draw investment and to create good infrastructure in those zones.

Foreign investors pay particular attention to two issues, including land and land clearance. To prepare land for hi-tech industrial zones and attract more investment projects, the city has created policies on land clearance to help investors carry out the task quickly.

Ha Noi will also speed up administrative reform to create favorable conditions for investors to deal with administrative procedures promptly.

What does Ha Noi need to do to be more competitive in attracting FDI than other localities such as HCM City, Binh Duong and Da Nang?

I do not think Ha Noi suffers from competition pressure with other localities in FDI attraction, because the city has many advantages, particularly in the field of hi-tech. The problem is how to effectively implement investment conditions and procedures for investors.

The industrial production value of Ha Noi in the first six months was estimated to have increased by 3.9 percent over last year, in which, the level of FDI growth was extremely low at 0.2 percent. Also, its export turnover saw a drop of 18.5 percent. Which policies has Ha Noi created to help FDI-supported businesses overcome difficulties?

Many wholly-foreign invested businesses in Ha Noi met difficulties. We understood their difficulties and have worked with them to find solutions to help tackle difficulties to promote production. For example. Cannon company encountered difficulties in sales, and was urged to reduce production and the labor force. So what should be done is to maintain skilled workers for when the economy recovers. We proposed measures such as allowing workers to have more days off, rather than firing them.

For businesses focused on exports, we suggested they employ stimulus measures, including the application of deferred payments for customers or provision of tax reschedule.

What is the city’s FDI attraction target in the next six months of this year?

I think it is difficult to set a target for FDI attraction in the remaining months of this year. This depends on the efficiency of the stimulus package. Ha Noi will do its best to attract FDI effectively by many measures and efforts.

(Vietnam News)

HCMC – Vietnam should establish a liberal institutional mechanism for its open economic zones, which will become the major driver behind the country’s economic growth in the long term, a senior economist said on Tuesday.

Vo Dai Luoc, head of the State Focal Program on Economic Issues till 2020, told a seminar at the Saigon Times Club on Tuesday that “it is open economic zones that will create breakthroughs in the country’s institutional mechanism, economic growth and social development” in the long term.

To make it a reality, however, Vietnam needs first to create a liberal institutional mechanism for such zones, Luoc said at the event organized by the Vietnam Asia Pacific Economic Center (VAPEC).

Vietnam has many advantages for establishing open economic zones as the country is at the center of the most dynamic region in the world, Luoc said in the seminar on Vietnam’s and the world’s open economic zones.

Vietnam currently has 15 open economic zones in which 13 are being developed but they have yet to make clear impacts on the economy due to the lack of suitable policies, he said.

Luoc introduced successful models of open economic zones in the world, especially in Dubai, South Korea, the U.S., and China. Institutional mechanism is the most important factor for the success, and policies should include duty-free or long-term land lease.

Moreover, open economic zones should have a strong self-governing power along with suitable administrative policies. Dubai International Financial Center is in the Middle East, but it runs following the U.K. laws, and its head is also a foreigner, Luoc added.

Tran Thanh Hong, deputy director of Tan Thuan Export Processing Zone Joint Venture Co., seconded the viewpoint, saying special policies should be designed for such zones, including export processing zones, with the least intervention from State agencies.

He related how enterprises in Vietnam’s export processing zones (EPZs) were still forced to observe all foreign exchange rules applicable for the local market, while such zones should enjoy autonomy to a certain extent.

“That is their business,” he said, explaining EPZ enterprises should be allowed to decide their own forex rules instead of being forced to trade in Vietnam dong.

Foreign investors have queried about power of management boards of EPZs as they always have to report to or ask relevant departments before making a decision, Hong added.

Local open economic zones are different from those overseas as they are opened under subjective decisions of the Government, not following demands and suggestions of foreign investors. Luoc said. Therefore, he said, local zones have not been as successful as expected.

Economic zones in China target foreign companies and are more export-oriented while Chu Lai, Vietnam’s first open economic zone in Quang Nam Province, is mainly an enclave for domestic companies and for local consumption.

Similarly, Dung Quat Economic Zone is mainly home to a State-run oil refinery with its products mainly serving domestic market. Van Don Economic Zone in Quang Ninh Province has yet to let any land plots for lease to date, according to Luoc.

Luoc rejected opinions by some saying that economic zones are unnecessary as Vietnam had joined the World Trade Organization (WTO). Joining the WTO helps Vietnam lift tax barriers while the open economic zone can help attract investment in and outside the country, he explained. (SaiGon Times)