In 1997, the newly established Quang Nam was the poorest province in Central Vietnam. After nearly 10 years of efforts, the province has become the most dynamic in economic development with Chu Lai as an attractive destination for local and foreign investors.
After three years of development, Chu Lai Open Economic Zone, the first of its kind in Vietnam, has created a special attraction and an important foundation for the province in the regional and international economic integration. According to Decision 43/TTg of the Prime Minister, Phase I will include 27,000 ha with industrial zones, urban area, tourism centre and customs free area essential for the open economic zone.
As Chu Lai is capable of attracting big investment projects, it is becoming the driving force of the region, especially the linkage of Chu Lai - Dung Quat –Nhon Hoi, a future competitor with others in ASEAN countries and East Asia. In 2006, Quang Nam has accelerated the investment, completing and starting the operation of the container por and customs free port, trying to complete the construction of industrial poert in 2007 and Ky Ha port in 2010 for ships of 20,000-30,000 DWT. At the same time, Chu Lai airport will become an international transit airport.
So far, VND1,000 billion have been invested in the development of infrastructure in Chu Lai. The land clearance and compensation have been completed in 500ha of land, nearly 600 households resettled. From now to 2010, tourist centres, services, export processing zone and industrial zone will be developed together with financial, banking, post and telecommunication services.
According to a research conducted by VCCI and US International Development Agency, the provincial competition index (PCI) of Quang Nam in 2005 ranked 16th among 42 provinces and 13th in 2006 among 64 provinces. It has shown clearly the progress in investment attraction of the province.
To improve investment environment, Quang Nam province and Chu Lai Open Economic Zone has applied fully the government policies regarding the province to secure most favourable treatment and comparative edge.
At the same time, the administrative reform has been accelerated with investment license granted within 24 hours. All hurdles in the investment process have been cleared by the local authorities, creating credibility among investors.
So far, Chu Lai Open Economic Zone has attracted nearly 120 projects with investment capital of nearly US$2 billion on an area of nearly 2,000 ha, including 25 FDI projects from China, Hong Kong, Korea, Taiwan, US, France, Singapore, Luxembourg, Italy, Malaysia, Philippines, etc. So far, 33 projects are already under operation with high
business efficiency and stable jobs for local people.
In particular, Truong Hai auto assembly plant is the biggest in the region. In two-year operation, the plant has produced 15,000 products and contributed to budget revenue some VND100 billion. The turnover in 2005 was nearly VND750 billion, equivalent to 57 per cent of the province revenue. In 2006 it is expected at VND800-900 billion.
In view of opportunities and challenges in the process of economic integration, Quang Nam will continue the development of infrastructure to meet the demand of forthcoming investors in Chu Lai.
Phan Duc Nhan
Chairman of Management Board
Chu Lai Open Economic Zone
Vietnamese
