Van Phong Economic Zone: Busy and Attractive Economic Zone

Attractive potential
Van Phong Economic Zone holds a variety of advantages for carrying out investment projects. Van Phong is 14 km from international maritime territory and adjacent to three international maritime routes. With a water surface area of 41,000 hectares and depth ranging between 20 m and 30m, Van Phong Bay can be developed into an international container transhipment terminal with annual stevedoring capacity of 17.5 - 17.8 million TEU a year. Once turned into a deepwater terminal, Van Phong will be able to accommodate container ships with capacity of more than 6,000 TEUs (twenty-foot equivalent unit). Van Phong is also linked with key north-south highways, with easy access to railway, roadway, waterway and airway routes. It is a gateway to the Central Highlands and is Vietnam’s closest point to major international maritime routes. An extended railway is being built to link the Central Highlands to Phu Yen via Van Phong. Furthermore, the upgrading of Dong Tac Airport (Phu Yen) and Cam Ranh Airport (Khanh Hoa) will expand the potential of Van Phong. Under its transport development orientation, Khanh Hoa will take full advantage of its three bays, Van Phong, Nha Trang and Cam Ranh, which lie on the north-south trans-Asia maritime axis. With favourable conditions for ocean container shipping, new investment projects are needed to develop shipping activities, shipbuilding and supporting industries. In addition, Van Phong has moderate climate and abundant natural beauty - core factors to develop ecological tourism, the seaborne economy and other services. Van Phong is near Nha Trang Bay, a major tourism centre in Vietnam, and one of the most beautiful bays in the world with highly developed infrastructure and services. All such incentives are attractive to international investors. Van Phong promises to become a well developed economic zone in the near future.

 

Dynamic developmentFrom late 2006 to early 2007, many foreign investors came to survey the area and locate their assets here. On February 14, 2007, the Ministry of Transport submitted the plan to develop Van Phong international container transhipment terminal in the start-up phase. Accordingly, the Vietnam Maritime Administration (Vinamarine) will invest capital equivalent to US$196 million to carry out the project. Of the sum, US$187 million will be used to develop the port yard and passageway, and US$8.8 million will go to the construction of roads leading to the port. Under the proposed plan, Van Phong Bay will have two wharves for container vessels capable of carrying 6,000 TEUs on board (wharves capable of receiving ships of 9,000 TEU) and will be able to handle 0.5 - 0.75 million TEU/year. The handling facility will be modern. The transhipment terminal is expected to go into service in 2010. Besides, the Prime Minister recently permitted South Korea-based STX Group to invest in a wholly foreign-owned mammoth shipyard in southern Van Phong Bay, estimated to cost US$500 million. South Korea’s POSCO proposed building a steel complex with estimated investment capital of US$11.5 billion. Japan’s Sumitomo Group hopes to build a thermal power plant with US$3.5 - 4 billion investment capital, which will supply investment projects in Van Phong Economic Zone and nearby areas. These projects will speed up the development of Van Phong Economic Zone. At present, STX Group has received an in-principle permit from the Prime Minister for its project. POSCO and Sumitomo are conducting site selection with the local government. The People’s Committee of Khanh Hoa Province is focusing on investing in and building water supply systems for Van Phong Economic Zone, and roads linking National Road 1A with the site of STX Group’s assets.
Xuan Long