Dung Quat EZ, Quang Ngai IZs: Driving Force of Industrialisation and Modernisation

12:25:34 PM | 15/4/2017

With their high investment attraction results and important contributions to export growth and economic growth, Dung Quat Economic Zone and Quang Ngai province-based industrial parks have quickly become driving forces for accelerating the province’s industrialisation and modernisation process. The following interview with Mr Dam Minh Le, Deputy Director of Dung Quat Economic Zone and Quang Ngai Industrial Zones Authority, will explore the new face and the new stature that economic and economic zones have brought to Quang Ngai province, particularly Dung Quat Economic Zone. Duy Anh reports.
It is clear that economic and industrial zones have brought substantial changes to Quang Ngai, especially Dung Quat Economic Zone. Could you please tell us more about these changes?
After many years of construction and development, Dung Quat Economic Zone is the first economic zone in the country to take the firm lead in investment attraction with big, modern projects that are vital contributors to socioeconomic development in Quang Ngai province and gradually serve as a growth engine and an industrial - service development centre for the central key economic region. To date, Dung Quat Economic Zone has attracted many gigantic projects in operation, including Dung Quat Oil Refinery, Doosan Vina Heavy Industries, Dung Quat International Port, Dung Quat Port No.1. Industrial zone infrastructure development project like VSIP Quang Ngai IP, SaiGon - Dung Quat and Quang Phu have housed many light industrial projects and generated jobs for tens of thousands of local workers. In addition, many tourism and service projects have also founded in the province, for example VSIP Quang Ngai Urban - Service Complex and Muong Thanh Ly Son Hotel.
Especially, when large-scaled factories are in operation, the province’s budget revenue grows very fast. The State budget revenue in the province climbed from VND540 billion in 2005 to over VND1,550 billion in 2008 and over VND30,000 in 2013, making Quang Ngai one of five largest collectors of taxes in the country, of which Dung Quat Economic Zone contributes over 85 per cent).
From a dry sandy area, Dung Quat Economic Zone has enabled Quang Ngai province to make a development breakthrough. The development of this economic zone not only aroused local potential and advantages in geographical position, resources, land and seaports, but also fundamentally changed the local economic structure, formed a strong production force, and created high industrial value, especially oil refining and heavy industries - important forces for the process of industrialisation and modernisation. In addition to creating jobs for tens of thousands of local labourers, improving per capita income, and helping poverty reduction in the province, tenants in the economic zone also carry out social welfare and humanitarian charity for the sake of the community and readily share its fruits with local people.
How has infrastructure development investment in industrial zones and economic zones been carried out by the province? How has it positively affected investment attraction into industrial parks and economic zones in the province, particularly Dung Quat Economic Zone and VSIP Industrial Park?
In 2012, Dung Quat Economic Zone was chosen as one of five key coastal economic zones to be developed with State budget in the 2013-2015 period. In 2015, it was selected as one of eight key coastal economic zones to be developed with State budget in the 2016-2020 period.
To date, Dung Quat Economic Zone and Quang Ngai Industrial Zones Authority built, completed and operated technical infrastructure and social infrastructure to meet development investment requirements of Dung Quat Economic Zone, e.g. trunk roads in Van Thuong Urban Area, Vo Van Kiet Street, a road from Dung Quat to Chu Lai Airport and Ky Ha Port, Doc Soi Road - Dung Quat Port and major traffic routes in inside industrial parks such VSIP, Tinh Phong, Quang Phu, Eastern and Western.
To date, Dung Quat Economic Zone and Quang Ngai industrial zones have been funded by the State budget for the construction of basic infrastructure and technical infrastructure to meet investors’ requirements. Specifically, they invested to build and operate 133 km of internal roads, wharves, water drainage systems, residential areas, resettlement areas, wastewater treatment stations, solid waste treatment facilities, green landscapes and some social infrastructure works such as Dung Quat Agricultural and Forestry Technical Centre, Dung Quat Technology College, Dung Quat Environmental Monitoring Technology Centre. The total State-funded budget for infrastructure construction has to date exceeded VND4,984 trillion and US$3.38 million.
They completed, handed over and put into use Tra Bong Bridge and Vo Van Kiet Road; and reinforced the foundation of remaining areas of Doosan Vina factories so as to improve and synchronise technical infrastructure to serve the development of Dung Quat Economic Zone. They continued to speed up the construction of ongoing projects such as a major traffic route linking the north and the south of Van Tuong, Tri Binh Road - Dung Quat Port, anti-landslide banks and rescue roads in resettlement areas and Hai Nam Residential Area.
The investment for synchronous and modern infrastructure has contributed to raising the efficiency of investment attraction and made Dung Quat Economic Zone and Quang Ngai industrial parks become appealing destinations for gargantuan projects such as Dung Quat Oil Refinery, Doosan Vina Heavy Industry Plant, Expanded Dung Quat Oil Refinery Plant and deepwater port system. In addition, it has attracted infrastructure investment projects in industrial parks, for example, VSIP Quang Ngai Industrial Park, Dung Quat Industrial Urban Zone, and Sai Gon - Dung Quat Industrial Park. At present, Dung Quat Economic Zone and Quang Ngai industrial parks have attracted 234 projects with a combined investment capital of over US$10.7 billion, of which 138 project were put into production. Dung Quat Economic Zone alone has 135 tenants with a total registered investment capital of over US$10.2 billion.
The establishment and development of VSIP Quang Ngai Industrial Park has created a new driving force for Quang Ngai province. To date, VSIP Quang Ngai has 13 tenants with a total registered capital of over US$200 million, of which six have been put into operation. And, the demand for labour resources is huge at VSIP Quang Ngai. VSIP is a professional industrial park infrastructure investor and its presence in Quang Ngai province will become a magnet for FDI flows. The operation of VSIP Quang Ngai will help boost the development of industry, services and urban areas, create jobs for local labourers and raise incomes for the State Budget.
Dung Quat Economic Zone aims to increase the total investment capital to US$13.5 billion and create jobs for about 35,000 people in central provinces from now to 2020. So, what will the Dung Quat Economic Zone Management Board focus on to accomplish these goals?
Dung Quat Economic Zone is designed to become a multi-sector economic zone, with focus placed on refining, petrochemical and heavy industries. In order to create development momentum in the coming time, Dung Quat Economic Zone will continue its development investment to maintain its role as a growth engine of Quang Ngai province in such fields as growth, economic restructuring and labour; build the solid foundation for Quang Ngai to become a modern industrial province by 2020. It will also promote the role of deepwater seaports in attracting heavy industry projects and large-scale projects; form a national petrochemical refining and energy centre in Dung Quat Economic Zone soon, continue to invest in the development of Van Tuong Urban Area and some satellite urban areas to meet industrial development requirements; and ensure the general efficiency of economic, social development, national security and defence, and environmental protection.
In order to achieve the above objectives, in the coming time, Dung Quat Economic Zone and Quang Ngai Industrial Parks will focus on the following groups of solutions: Developing infrastructure, utilities, land and urban areas; boosting communication and investment promotion; and stepping up investment promotion in industries with comparative advantages. In addition, we will consider and make reasonable adjustments to land compensation price and land clearance procedures to reduce land access costs for investors; and enhance land administration of governments to remove obstacles in land compensation and site clearance for projects. Furthermore, we will assess investor capacity and project feasibility when we consider investment certification in order to minimise ineffective, slow-moving projects.