Van Phong Economic Zone Ready to Transform and Ascend

3:39:03 PM | 4/15/2022

After 15 years of construction and development (2006 - 2021), Van Phong Economic Zone in Khanh Hoa province has gradually transformed with a new look and excellent results in investment attraction and manufacturing development to increasingly approach the goal of becoming a key economic zone and a driving force of Khanh Hoa province in particular and the Southern Central Coast and the whole country in general.

Van Phong Economic Zone, established by the Prime Minister under Decision 92/2006/QD-TTg dated April 25, 2006, has a total area of 150,000 ha (70,000 ha of land and 80,000 ha of water surface) in Van Ninh district and Ninh Hoa town. To create a launching pad for the economic zone to “fly off”, in 2014 the Prime Minister issued Decision 380/QD-TTg approving amendments to the master plan for construction of Van Phong Economic Zone to 2030, aimed for different industries. International container transshipment, petroleum and petrochemical production and petroleum transshipment will play a key role, combined with the development of tourism, services, industry, aquaculture and other economic sectors. At the same time, it will be an economic center of Khanh Hoa province that plays a leading role in attracting investment inflows and driving economic development for neighboring regions and the whole country.

In order to tap the advantages of its deep-water port, by 2020, the economic zone had Bac Van Phong Port capable of receiving ships of 70,000 DWT and Nam Van Phong Port capable of serving vessels of 70,000 DWT and up to over 100,000 DWT in the coming time. In addition, this zone invested in developing specialized terminals such as the Port of Hyundai Vietnam Shipyard, the Port of Bonded Petroleum Warehouse, and Coal Import Port for Van Phong 1 BOT Thermal Power Plant.

Assessing the role of Bac Van Phong Port (to be Van Phong International Transshipment Port in the future) and Nam Van Phong Port in attracting large investors to Van Phong Economic Zone, Director of Van Phong Economic Zone Management Board Nguyen Trong Hoang said that with the advantageous infrastructure invested in the period 2021-2025, like Khanh Hoa - Buon Me Thuot Expressway, Van Phong - Nha Trang Expressway, upgraded National Highway 26B and Nha Trang - Ho Chi Minh High-speed Railway, Van Phong Economic Zone is the center of industry, seaport, logistics and energy of Khanh Hoa province, the southern central key economic zone and the Central Highlands, and near major raw material areas such as Dak Lak, Gia Lai and industrial parks in Khanh Hoa province. Bac Van Phong and Nam Van Phong ports are gradually becoming large logistics centers to meet more demand for shipping services and connecting key economic regions, and connecting with the large and potential Central Highlands market. Receiving more cargo vessels will enable the development of port operators and increase local budget revenue as a whole. This is an advantage for tenants in industrial parks in Van Phong Economic Zone and surrounding areas because it reduces freight costs, especially for super-long and super-heavy goods. In other words, when Bac Van Phong and Nam Van Phong ports come into operation, it will help increase the appeal to investors, especially large ones. They are expected to create a push for the future development of Van Phong Economic Zone.

Directed by the Provincial Party Committee and the Provincial People's Committee, the Van Phong Economic Zone Management Board has coordinated with the consultant to research and shape the development of Van Phong Economic Zone to 2030, Director Hoang added. Accordingly, priority industries include ports, logistics services, high-class tourism, hi-tech, energy, shipbuilding and modern urbanization. Currently, the consultant is researching and completing its work, expected to be submitted to the Prime Minister for approval in the first quarter of 2022. After the revised plan is approved, Van Phong Economic Zone hopes to woo giant foreign investors. This is also the foundation for Khanh Hoa province to set a target of drawing at least VND150 trillion into Van Phong Economic Zone in 2021-2025 and disburse at least VND75 trillion in this period. At the same time, Van Phong Economic Zone will account for 30-40% of the province's budget revenue and 40% of the province's industrial value, and create jobs for about 15,000 workers.

By Vietnam Business Forum