IPP Group to pour $50 billion into North Van Phong SAEZ

IPP Group to pour $50 billion into Bac Van Phong SAEZ

According to IPP Group’s chairman Johnathan Hanh Nguyen, North Van Phong has particular advantages that the other SAEZs like Van Don and Phu Quoc do not. Thereby, he wants to pour around $50 billion to develop Bac Van Phong SAEZ into a modern and different SAEZ. This amount is triple the government’s requirement of VND400 trillion ($17.6 billion).

Lee Dong Seok, vice general director of KPMG in South Korea (joint venture with IPP Group), said: “North Van Phong SAEZ has many advantages and is located in the centre of sea traffic. We want to develop North Van Phong via investing in complex projects such as casinos, golf courses, tourism services, and a seaport, which could accommodate the biggest ships of the world.”

Additionally, IPP Group will build high-tech industrial areas combining high-tech industry and high-level urban areas, including modern and smart facilities of education, healthcare, and social infrastructure. This SAEZ will use renewable energy and develop a smart city, connecting with Hanoi, Ho Chi Minh City, and other cities over the world.

The group said it will pour about $3-10 billion into infrastructure such as energy, transport, water supply, $5 billion into the airport, $5 billion into the deep seaport, and $3 billion into services at the seaport.

There are three phases in the investment schedule. A general plan will be built in the first phase and submitted to the authorities for approval. A mechanism of attracting investors will be formed and carried out in the second phase. The project management office will be established in the third phase to measure development indicators and conduct advertisement and communication activities.

Johnathan Hanh Nguyen also proposed hiring security guards for North Van Phong’s land to prevent encroachment on public land and illegal transactions. IPP Group’s partners have great experience in developing projects in SAEZs in other countries, as well as in constructing airports and non-tariff commercial areas.

The Khanh Hoa People’s Committee is currently calling for investors to focus on four priority sectors in this SAEZ, including seaport logistics, financial-banking centre, and high-tech sectors related to IT, healthcare, education, which are accordant with the development plan of IPP Group in South Van Phong SAEZ.

Earlier, IPP Group sent a document to the Quang Ninh People’s Committee on the future non-tariff area investment in Van Don. The group expects to pour VND10 trillion ($440 million) into this project in 2018-2023 to construct duty-free shops and supermarkets, a fashion outlet, condotels, a commercial centre, and a food court, as well as entertainment facilities and offices.