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Van Phong Economic zone - Motive force of Khanh Hoa economy PDF Print
Wednesday, 15 January 2014 11:02

VIETRADE - At present, there are 3 strategic development zones in Khanh Hoa province, including Nha Trang, Van Phong and Cam Ranh; in which Van Phong is the key economic zone with parallel strengths of industry and tourism, service, especially shipbuilding industry. In other words, Van Phong Economic zone plays a significant role in attracting investment, carrying out the industrialization –modernization of Khanh Hoa.


Thanks to natural and geographical favorable conditions, Van Phong is assessed to be highly potential in trading, international and domestic services. The development of Van Phong economic zone will promote the socio-economic growth of Khanh Hoa, South Central Coast, and Central Key Economic Zone, and narrow the gap step by step between South Central Coast with other areas to become the growth core, and the center of urban area, industry, service  and tourism of South Central Coast.


In recent years, Van Phong economic zone has gradually confirmed its position while there have been a lot of potential investors and various breakthrough investment projects. Up to now, Van Phong Economic zone has had 120 projects (including 27 foreign projects and 93 domestic projects) with the total investment capital of 14.2 US dollars, and total rent land area of 6,900 ha. There have been 44 projects coming into operation (in which 21 projects implemented before the establishment of economic zone) with the total implementation capital equivalent to 516.36 million US dollars; 12 projects are in progress of basic construction with the total registered capital of 594 million dollars; investment certification for 46 projects has been issued and some preparation is being implemented with the total capital of 1.91 billion US dollars; other 18 projects are agreed to be invested and in progress of preparing the registration procedures with the total capital of 11.22 billion US dollars. For the last few years, Van Phong economic zone has been waken up and gradually confirmed its position of being one of 15 costal dynamic economic zones in Vietnam.


After nearly 8 years since 2006 when the Prime Minister decided to establish Van Phong Economic zone, with the efforts of the Board of Management in economic zone as well as the Khanh Hoa Provincial People’s Committee to appeal for investment, especially large-scale projects which motivate the economic development in South Central Coast and the whole country and are approved by the Prime Minister; therefore, Van Phong has attracted many projects with large scale as well as importance in socio-economic development of Khanh Hoa province and South Central Coast such as: Nam Van Phong Refinery Project in kick-off phase with the total investment capital of 4.5 billion US dollars; Van Phong international transshipment port project with the total investment capital of 6,117 billion dong; Van Phong 1 Thermal Power Plant project (total capital of 2 billion US dollars); Tuan Hoan Co Ma Ecological Urbanism project (total capital of 3.5 billion US dollars); Van Phong Petroleum Industrial Service Base project (total capital of 1.3 billion US dollars, etc. Broadly, we can see the more and more importance of Van Phong Economic zone to the development of Khanh Hoa province in particular and Vietnam Economy in general. For the past 7 years (from 2002 to 2009), the Government has decided to strategically adjust Van Phong Economic zone in the direction of raising its position in order to the favorable conditions in Van Phong. The Government defined that this is the “General economic zone with multi industries: tourism, service, port, industry, and aquaculture; in which tourism and service play the key role”. Until 2030, Van Phong will have been defined as the “General economic zone in which the international container transshipment port, petrochemical industry, petroleum transshipment and oil products play the key role”.


Thanks to such adjustment, the investment opportunities have been created for foreign and domestic corporations; thus, the Van Phong Economic zone has recently positively changed and created the breakthrough. For the last few years, due to the economic crisis, Vietnamese and global financial situation has partially impacted on the progress of the projects and the development of the Van Phong Economic zone; however, investors have tried their best to implement the projects in Van Phong. Therefore, it is necessary to evaluate the right advantages of Van Phong, the Government issued a resolution to create advantages for the development of Van Phong as well as the motivation for the economic development of South Central Coast. Currently, the dynamic projects are in progress like the international container transshipment port project which has been allowed to adjust from 9,000 TEU to 12,000 - 15,000 TEU by the Government and the similar adjustment also has been done for Nam Van Phong Refinery Project, etc.


In addition, the leaders of Khanh Hoa province have guided the authorities to create the most favorable conditions to attract investments. The Provincial People’s Committee has also some new orientations such as focusing on building infrastructure to meet the need of the projects, which can be considered to be an important factor for Van Phong to attract investments; therefore, the Steering Committee of Van Phong Economic Zone, the People's Council, Provincial People's Committee all agreed with the plan of capital mobilization to implement the list of 30 investment projects on technical and social infrastructure in Van Phong Economic zone up to 2015 with total capital of 11,000 billion dong. Nevertheless, in the past few years, the central and local budget- funded projects with total capital of 761 billion have not been satisfied; thus the Board of Management focuses on investing the necessary technical infrastructure items such as resettlement areas, the main transport constructions, reservoirs, site clearance for the important projects like Van Phong international transshipment port, Van Phong Bonded Petroleum Store, Van Phong Petroleum Industrial Service Base, etc.


Up to now, almost key projects on technical infrastructure in the Economic zone have been prepared (about 25 constructions with the total capital of 7,500 billion dong), in which 7 roads have been constructed with total capital of 1,900 billion dong; 4 resettlement areas have been implemented (Vinh Yen, Ninh Thuy, Xom Quan, Van Thang); site clearance of 1,200 ha has been completed. The locality directed District People’s Committees and authorities to focus on site clearance and regularly inspect and resolve problems to ensure the implementation progress; as a result, some projects have been basically fulfilled in compliance with time constraint and regulations of land law. However, Van Phong Economic zone needs a larger investment capital to obtain the adequate development of Van Phong’s capability.


Thanks to the attention by the central to local levels, as well as the determination of the Board of Management in the Economic Zone, Van Phong will create the powerful capability and Van Phong is bound to successfully exploit its potentials and advantages to soon become one of the important places in the socio-economic development strategy of  Khanh Hoa province in particular and the South Central Coast in general. In the short term from 2011 to 1015, the infrastructure constructions will be focused to attract more investments in the Economic zone, creating the economic development motivation of Khanh Hoa province and the South Central Coast.

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