Nam Phu Yen Economic Zone: On the Move

4:03:38 PM | 19/6/2017

Since its inception, Nam Phu Yen Economic Zone has quickly affirmed its position as a nucleus for economic growth of Phu Yen province and neighbouring areas.

Nam Phu Yen Economic Zone lies in Nam Phu Yen-Bac Khanh Hoa Economic Region, a driving general economic region of the Central Coast of Vietnam. The economic zone, covering an area of 20,730 ha, is bordered by the East Sea in the east, the North-South Highway in the west, Van Ninh district of Khanh Hoa province in the south, and the Da Rang River in the north. This prime location enables the economic zone to cooperate and integrate with dynamically developed regions in the country, and around the region as well.

Besides a favourable location, Nam Phu Yen Economic Zone also holds a great advantage in abundant human resources. Furthermore, all investment projects are granted preferences of land rent, water surface rent and tax incentives according to the Law on Investment 2014. Notably, the Phu Yen Economic Zone Authority is ready and willing to provide all favourable conditions to support investors in the process of completing registration procedures and carrying out investment projects.

Aiming to prioritise large-scale, driving and big taxpaying projects, as well as projects using advanced technologies, Nam Phu Yen Economic Zone has to date attracted 29 investment projects with a combined registered capital of VND3,637 billion (US$160 million) and US$3.193 billion, which hired 746 ha of land and 669 ha of water surface. Tenants in the economic zone have contributed significantly to the industrial output of Phu Yen province. In 2016 alone, their export turnover reached US$80 million, fulfilling the full-year plan; their revenue was VND3,500 billion, exceeding the yearly plan by 13 per cent; and their tax and fee payment to the State Budget grossed VND280 billion, 20 per cent higher the annual plan.

Determined to turn Nam Phu Yen Economic Zone into an investment magnet and economic growth engine, Phu Yen province has given priority to carrying out synchronised essential infrastructure to create breakthroughs in investment attraction. Typical investment items include Bai Goc Port, a coastal road from Hung Vuong Road (Tuy Hoa City) to Vung Ro Bay, and a new terminal in Tuy Hoa Airport. The infrastructure system in Nam Phu Yen Economic Zone is gradually completed to meet investors’ requirements, including Vung Ro Port, Da Nong Bridge, Phuoc Tan - Bai Nga Road to Vung Ro port, Hoa Tam Petrochemical Zone and Vung Ro Oil Refinery. Regarding the role of Vung Ro Oil Refinery to development and investment attraction of Nam Phu Yen Economic Zone, Mr Le Van Thanh, Director of Phu Yen Economic Zone Authority, said that this motive project will help improve the infrastructure system in the economic zone, thus exerting a stronger pull on new petrochemical and supporting projects. As soon as Vung Ro Oil Refinery comes into operation, the socio-economic landscape of Phu Yen will change dramatically. It is expected to contribute VND8,000 billion to the State Budget and generate nearly 2,000 jobs.

Another great advantage for investment attraction into Nam Phu Yen Economic Zone is that, in 2015, the Prime Minister decided to select eight key coastal economic zones for focused development investment in 2016 - 2020 funded by the State Budget, and Nam Phu Yen Economic Zone is one of them. This demonstrates the great expectations of the Government for the role of Nam Phu Yen Economic Zone in the development of not only Phu Yen but also the southern central coast region. In the coming years, Phu Yen province will continue to invest in infrastructure and draw investment capital for development of Nam Phu Yen Economic Zone in order to maintain its leading role in the provincial economic growth, economic restructuring and labour fabric in order to turn Phu Yen into a modern industrial province by 2020.

In the year 2017, Nam Phu Yen Economic Zone expects to attract 5-7 investment projects, generate revenue of VND3,800 billion, earn export turnover of US$100 million, pay VND300 billion to the State Budget and create about 6,500 jobs.

Thanh Tung