In a document recently sent to Deputy PrimeMinister Nguyen Xuan Phuc, Chairman of the Quang Nam provincial People’sCommittee Le Phuoc Thanh said the proposal would help put theindustrial park (IP) on the radar of large RoK companies looking forinvestment locations in Vietnam.
“The establishment of aRoK-centred IP and township to which the province can attract industrialmanufacturing and processing projects, support industries,infrastructure and tourism projects from RoK is completely suitable withglobal investment trends and the development plan of the Chu LaiEconomic Zone,” said Thanh.
In 2012, the committee first drew upplans for a Vietnam-RoK Chu Lai IP within the existing Chu Lai EconomicZone. The province signed an agreement with RoK developer C&N Vinato develop a 1,600-hectare project comprising 700 hectares for an IP,350 hectares for a township and 550 hectares for tourism.
Whilemuch of the plan remains on paper, in April 2013 the developer obtainedan investment certificate to develop the 200-hectare Tam Anh IP withinthe proposed Vietnam-RoK Chu Lai IP, at a cost of 25 million USD.
According to the province’s documents, 10 foreign investors have agreed to set up projects in Tam Anh.
“The project is small in scale,” said Thanh, implying that it is difficult to attract big foreign investors to the park.
Theproposal by Quang Nam shows that this province is trying to improve itsinvestment climate in the fields of industrial manufacturing andprocessing, especially from RoK companies.
According tostatistics from the Ministry of Planning and Investment’s ForeignInvestment Agency, RoK is the third largest source of foreign directinvestment to Vietnam in terms of committed capital, following Japan andSingapore. But in terms of project numbers, RoK ranked top with 3,546projects as of the end of 2013, proving that Vietnam is a populardestination for RoK companies.
The committee’s proposal alsoindicates that the province does not want to be left behind itsneighbouring Quang Ngai province in the race to lure new foreign directinvestment.
Though Chu Lai was the first economic zone inVietnam, Quang Ngai province’s Dung Quat Economic Zone is by far thebusiest in the country. This economic zone is now home to an oilrefinery, a manufacturing complex of RoK’s Doosan Heavy Industries, andan IP and township complex of VSIP – the country’s leading industrialpark developer.
In addition, Japan’s JFE Steel is planning tobuild a 4.5 billion USD steel manufacturing complex there, Singapore’sSembcorp Industries is studying to build a 2 billion USD thermal powerplant and US’ ExxonMobil in association with State-run PetroVietnam isstudying the feasibility of a gas treatment and thermal power complex.
Meanwhile,the biggest project in the Chu Lai Economic Zone is the auto assemblingcomplex of Vietnam’s Truong Hai Auto Corporation. Foreign investorshave mostly overlooked Chu Lai for large scale projects.
“In this period, we need some big projects to make Chu Lai a dynamic and effective economic zone,” said Thanh.-VNA
Quang Nam industrial park eyes Korean investors have 464 words, post on en.vietnamplus.vn at 2014-02-19 08:01:16. This is cached page on VietNam Breaking News. If you want remove this page, please contact us.