Green light for Van Phong projects

January 16, 2011 | 21:58

(0) user say

A series of projects capitalised at billions of dollars will get licences in the Van Phong Economic Zone in central Khanh Hoa province this year, which will help significantly improve infrastructure in the area.

The Van Phong Economic Zone Management Authority announced that it plans to grant investment certificates for about ten projects with a total investment capital of around $5.5 billion.

Those include a $2 billion coal-fired power plant invested by Japanese Sumitomo Corporation, a $1 billion petro chemical project invested by Vietnam National Petroleum Corporation, a $1.4 billion oil and gas service park built by Vietnam National Oil and Gas Group and a $200 million Van Thang Industrial Park invested by a Korean investor.

“These projects will make the economic zone more attractive and encourage other investors to the economic zone,” said Nguyen Trong Hoa, head of Van Phong Economic Zone Management Authority, before stating that the investors of the said projects were in final stages of undertaking administrative procedures and negotiations.

Among the projects, Sumitomo Corporation and its local partners are concluding a build-operate-transfer contract with Khanh Hoa province and relevant ministries for a 1,320 megawatts coal-fired power plant. Sumitomo aims to complete plant construction and start commercial operations in 2015.

Established in 2006, Van Phong Economic Zone has been catching attention from many foreign investors. Korean Posco Group previously proposed to build a $5 billion steel manufacturing factory in the zone, but the government has rejected the proposal. Belgium’s Rent-A-Port is also planning to build a logistics centre, aiming to serve the demand of manufacturers operating in the zone.

Last year, Van Phong attracted 17 new projects with total investment capital of around $67.5 million, raising total registered capital in the zone to $15 billion.

By Nhu Ngoc

vir.com.vn

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional