Giant economic zone rolls out the welcoming mat

The zone is designed to help boast central Vietnam’s economic development

The giant zone was set up on 27,100 hectares in Phu Loc district, a short distance from Chan May deep port that currently handles ships up to 30,000 tonnes and is 30 minutes from Danang international airport and 100 kilometres from Phu Bai airport.
“The location is convenient for travel and product shipment,” said Nguyen Huu Tho, deputy director of the zone’s management board.
The economic zone will boast a large free tax area, industrial park, a port, logistics complex, tourism and service areas and residential developments.
The government said the zone will be closely connected with Chu Lai in Quang Nam, Dung Quat in Quang Ngai and Nhon Hoi in Binh Dinh provinces to boost economic development in central Vietnam.
Thua Thien Hue is offering a raft of incentives, including tax breaks and concessions, to lure investors to set up production bases and build residential and tourist areas in the zone.
Investors will enjoy a corporate income tax rate of 10 per cent within the first 15 years of operation. They will not be subject to corporate income tax in the first four years and have 50 per cent reduction in the next nine years.
Vietnamese and foreign individuals will get 50 per cent off their high income tax rates.
These incentives are paying off, with Alcan the world’s second largest aluminum producer, announcing a production base in the zone.
The company will invest $20 million to set up production facilities on 65ha in the zone.
Foreign experts and 1,000 local workers have built a pier and a wide road leading to the sea port, preparing for the shipment of products to Australia.
Alcan would spearhead the zone’s development, Tho said. The company imported material volume worth $65m in the first five months to assemble giant aluminum exploitation facilities for exports.
Tho said more than 40 businesses have applied to invest in the zone with registered investment capital of $500m.
The picturesque bay of Lang Co has drawn a dozen of investors from Japan, Hong Kong, Singapore and Germany seeking opportunities to build resorts and a large golf course.
The bay has been listed as one of four main national tourism complexes in the country.
Besides Chan May, a number of economic zones have been set up across the country, including Vung Ang in Ha Tinh, Nghi Son in Thanh Hoa and Van Don in Quang Ninh provinces.
These zones have more than industrial parks to include ports, residential areas, free tax areas and tourism complexes where investors are often offered more preferential treatment than in other regions.
Haiphong is applying for an economic zone but the government has asked the Ministry of Planning and Investment to submit a development master plan for these mega projects before it can approve the northern port city’s proposal.



No. 765/June 12-18, 2006