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Dung Quat Economic Zone - an ideal destination for investors PDF Print
Thursday, 27 February 2014 10:58

VIETRADE - Lying in the middle of Vietnam, about 860 kilometers away from Ha Noi and Ho Chi Minh City,being contiguous to No.1 National Highway and trans-Viet Railway, a starting point of the trans-Asia expressway connecting to Laos, Cambodia, and Thailand; owning Dung Quat Deep-water Port, Chu Lai Airport nearby, and auxiliary urban areas with high quality facilities and services, Dung Quat Economic Zone is evaluated as one of the most attractive business venue for domestic and foreign investors.

 

Established in 1996, Dung Quat is an interdisciplinary economic zone with key industries of oil filtering and petro-chemistry, heavy industries, and large-scale projects in association with developing Dung Quat Deep-water Seaport.

 

After 16 years of establishment and development, Dung Quat Economic Zone has totally changed its look with completed infrastructure: about 1,200-kilometer long main axis traffic system; such facilitation works as vocational training college, television station, center for environmental monitoring, hospital, sports and cultural center, high-tech agro-forestry supporting center, etc. have also been put into operation contributing to building a modern investing environment. Especially, Dung Quat Deep-water Port has exploited 10 quays that can receive up to 50,000-DWT  vessels, the total quantity of goods loaded and uploaded through the port was 14 million tons in 2011. Saigon–Dung Quat Industrial Park (118ha) with a synchronous infrastructure has been attracting medium- and small-sized businesses in light and export industries.

 

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Besides, in order to attract more investment, Dung Quat  Economic Zone is applying investment incentive policies at high level and clear mechanism in management and operation as international practice, specifically, exempting import tax in 5 years from the date of commencing production for raw materials, components, semi-finished products serving production of the project; businesses will enjoy preferential tax rate at 10% for business income tax in 15 years from the date the project goes into production; reducing by 50% of personal income tax for high income people; the time-limit for leasing land can last up to 70 years. As for high-tech, important or large-scale projects that are approved by the Prime Minister, the business income tax rate will be 10% in 30 years. Dung Quat Economic Zone also exempts land and water surface rent eventually for specially investment incentive projects, 15 years for investment incentive projects, and 11 years for other investment projects. Besides, the Management Board of  Dung Quat Economic Zone also supports businesses in vocational training and supplying technical laborers; supporting foreign experts to buy or rent houses in the economic zone; renting out or assigning land in Van Tuong urban area to build housings or resorts for cadres, experts, employees of the factories, or housings for hire for workers, etc.

 

Thanks to the comprehensive infrastructural investment and open policies on investment attracting and encouraging, Dung Quat Economic Zone has gradually developed strongly and firmly. By June 2012, there have 114 projects been issued with investment certificate with the total registered capital of over US$8 billion, executed capital of nearly US$5 billion. It is expected to attract more than US$15 billion by 2015, in which, executed capital is about 60-70%. Among the projects having been put into operation, there are many large scale projects operating effectively, such as: Dung Quat Oil Refinery at an output capacity of 6.5 million tons/year, which is now preparing formality for upgrading to 10 million tons/year; Doosan–Vina Heavy Industry Plant; Dung Quat Shipbuilding Industry Company, Ltd., PP Plastic Plant, Dung Quat Bio-ethanol Plant, etc., which have created employment for 14,000 laborers. In 2011, the value of industry commerce-service output capacity in the economic zone was 115,000 billion VND; export turnover was US$25 million; budget collected in Dung Quat Economic Zone was 15,532 billion VND. The economic zone has been widened southwards with the total area up to 45,332ha, including 8,000ha of industrial land. With this development, Dung Quat Economic Zone is concentrating on oil refinement and petro-chemistry, supporting Vietnam Oil and Gas Group to speed up the progress of widening and upgrading the output capacity of Dung Quat Oil Refinery to 10 million tons/year and step by step forming the national oil refinement and petro-chemistry center; at the same time, continuing to form heavy a industrial park in association with Dung Quat II Deep-water Port and light industrial parks in association with Quang Ngai urban area.

 

It can be said that, with its establishment and effective operation, Dung Quat Economic Zone has contributed to building Quang Ngai from a poor province into one of the top 10 provinces / cities having highest rate of budget collection of the whole country. Dung Quat Economic Zone continues to attract strategic investors with such important and large-scale projects as JFE Steel Corporation and Sojitz Paper Corporation (Japan), Sembcorp Corporation and VSIP Industrial Park Development Joint-venture Company (Singapore) for a 1,200-MW thermoelectric plant, a 1,200-ha industrial park, gas-industrial complex project, etc.



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