Central region propels fresh promotion for major ventures

May 30, 2023 | 11:14
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The central region and its localities are actively refreshing in order to have a new direction of attracting foreign funding flows more effectively.
Central region propels fresh promotion for major ventures
Several key projects have been licensed across the central region in recent times

Last weekend, Ha Tinh province held a conference to announce provincial planning and promotion of new investment. It is hoped that the event, which has attracted the attention of numerous investors, will spur huge inflows to awaken the potential and aspirations of the province.

It is not the only locality pushing ahead with promotion events. The representative of one international investment cooperation organisation told a conference in Binh Duong province that while Vietnam-Singapore Industrial Park is growing stronger and expanding in many localities, and the occupancy rate at its IPs is good, the approach in terms of after-sales services for investors may not yet be up to scratch.

Localities in the region recognise that the similarity in development conditions can be an advantage for the whole region but also a significant challenge for each locality. The issue of regional links, even cluster links, was posed by economic experts at the event with the expectation of changing the approach to foreign investment inflows. However, they said, moving from policy to practice is always a major problem in this regard.

The most practical solution today is for localities to renew themselves and choose strategies in accordance with their local characteristics to attract foreign funding. Quang Binh province has pioneered in setting up a foreign investment cooperation plan. Its clear strategy is to build a roadmap to identify the locality’s advantages and create a difference between Quang Binh and other localities.

Nguyen Bay, director of Binh Dinh Investment Promotion Centre, said that financiers are very much looking forward to cooperation plans such as these. “The master plans of localities help them clearly identify the necessary conditions before exploring opportunities,” he said.

Elsewhere, Khanh Hoa was the first locality in the region to announce a provincial plan, and its conference on the issue was attended by 1,000 registered guests.

Le Huu Hoang, Deputy Chairman of Khanh Hoa People’s Committee, said the new planning is orienting the key local economic sectors that need to be developed, thereby helping investors to realise efficiency when choosing Khanh Hoa to place their money. Particularly for Van Phong Economic Zone, the government’s decision to adjust planning has opened up opportunities. “With the orientation of an economic zone, Van Phong is creating a great attraction site for international investors,” said Hoang.

Recently, localities in the central region have continuously welcomed international investors to explore opportunities, and some localities have licensed large projects.

The management of Southeast Nghe An Economic Zone granted a certificate to Foxconn Group, with capital of $100 million. The investor will build a factory for manufacturing wireless headphones, connecting wires, wireless chargers, speakers, and more at WHA Industrial Zone 1.

Nghe An is one of the top localities in the region in terms of luring in foreign direct investment. In addition to Foxconn, the province has licensed many important projects such as a Luxshare electronic components factory ($140 million); Goertek’s electronic product manufacturing project ($500 million), Everwin Precision Vietnam’s electronic component project ($199.8 million) and Ju Teng’s auto parts and electronic component factory ($200 million).

Meanwhile, other major developments have been proposed in the region. Previously, PETMAL Oil Holdings from Malaysia worked with the People’s Committee of Phu Yen province and proposed an oil refinery project in South Phu Yen Economic Zone, with an initial level of about $2 billion. Elsewhere, Binh Dinh People’s Committee received a proposal from Germany’s PNE Group to fund an offshore wind power project with a capacity of 2,000MW and total investment of up to $4.6 billion. Binh Dinh is considering proposals to put the project into planning and expedite procedures for investors to deploy.

Most localities are set to prioritise investment attraction in high technology. For example, Danang will give priority to attracting funding in industries that are ahead of the curve such as ICT, digital tech, nanotechnology, and the supporting industries.

Another area that international investors are interested in is logistics services. Danang People’s Committee announced 10 logistics service centre projects seeking investment before 2030; while Khanh Hoa People’s Committee aims to build the Cam Ranh urban area into a logistics service centre for the region.

Huge transport investment expected to vitalise central regions Huge transport investment expected to vitalise central regions

More than $4.34 billion are to be put into expanding the national highway network from 2021 to 2025, which is expected to create a turnaround to transport infrastructure development in the central regions.

More expressways to be built in central region by 2025 More expressways to be built in central region by 2025

The Ministry of Transport has set a target of completing and putting into operation the eastern North-South expressway by 2025, bringing the total length of highways in the north central-central coastal region from 193km to 1,390 km, said Transport Minister Nguyen Van Thang.

By Hoai Thanh

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