Dung Quat Economic Zone: The nucleus of socio-economic growth in Quang Ngai
WVR - Dung Quat Economic Zone (EZ) is one of the economic zones authorized by the Vietnamese Government to apply the most preferential policies on land rental and corporate income tax.
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| To date, in Dung Quat Economic Zone and Quang Ngai Industrial Parks, there are 348 projects in validity, total registered investment capital equivalent to USD 18.088 billion, of which 63 projects have foreign direct investment (FDI), Investment capital is over USD 2.2 billion. |
Dung Quat Economic Zone was approved by the Prime Minister for general planning with an area of 45,332 hectares with the Decision No. 168/ QD-TTg dated February 28, 2023, as a general, multi-sector, multi-industry economic zone. Located in the zone is a center for petrochemical refining, national energy, mechanical engineering - metallurgy and a large regional logistics center to promote and effectively make use of the Dung Quat deep-water port and Chu Lai airport; it is considered as an important freight transport and international trade hub in the region.
Investment attraction imprinted
The investment promotion and attraction were then comprehended as one of the key tasks, in 2023, Quang Ngai province has deployed many diverse forms of investment promotion at home and abroad, to introduce, promote images and provide information about the investment settings and policies. Support for businesses is also carried out regularly in administrative procedures, as well as project implementation. In addition, management and investment support are attended and implemented drastically and promptly. Departments and localities have also coordinated with one another to promptly resolve recommendations from investors and businesses.
In 2023, the Management Board's rate of resolving documents and administrative procedures before deadline reached 99.05%; 100% of respondents were extremely satisfied and satisfied with the process of handling administrative procedures at the Management Board. This has positively impacted the business investment in Dung Quat Economic Zone and Quang Ngai Industrial Parks in particular and Quang Ngai province in general.
During the year, the Management Board issued decisions to approve investment plans, new investment registration certificates and adjusted capital increases for 25 projects with a total registered investment capital of over USD 1 billion. The investment attraction target exceeds 621% of the annual plan, an increase of 791% compared to 2022.
To date, in Dung Quat Economic Zone and Quang Ngai Industrial Parks, there are 348 projects in validity, total registered investment capital equivalent to USD 18.088 billion, of which 63 projects have foreign direct investment (FDI), Investment capital is over USD 2.2 billion. In Dung Quat Economic Zone and Quang Ngai Industrial Parks, there are 253 projects being in production and business operations. In 2023, businesses achieve revenue of about VND 254,500 billion and contribute VND 24,786 billion to the state budget.
Innovation with strength, effectiveness and sustainability
In the international and domestic context, the development plans are intervened with many turning point changes, containing very different opportunities and challenges compared to the previous periods. The reality requires that the development of industrial parks and economic zones needs to be innovated more strongly, effectively and sustainably to adapt to the world and domestic context, in accordance with the socioeconomic development strategy for the 2021-2030 period, vision to 2045. Therefore, Quang Ngai province has built its goals and strategies for industrial development in the direction of green development.
Firstly, in terms of industrial park development orientation, by 2030, Quang Ngai province plans to develop 10 industrial parks, including 6 industrial parks located in Dung Quat Economic Zone. The total land area according to development needs for these 10 industrial parks is calculated at 6,648 hectares. The development of these industrial parks is oriented according to the models of industrial park - urban - service, supporting industrial park, eco-industrial park, hightech industrial park to maximize the use of land resources and available advantages to develop Dung economic zone, so that Dung Quat could become a specialized, green, smart and sustainable economic zone.
Secondly, regarding the investment attraction, it is channeled into restructuring industries towards high technology, green industry, deeply participating in the global production chain; it is also to limit "energy-intensive", "labor-intensive", "land and resource-intensive" industries, increase "technology-intensive" industries. Accordingly, the plan is to continue to make use of the existing strengths and potentials in fundamental industrial fields (petrochemical refining, chemicals, metallurgy and mechanical manufacturing) and promote the development of these fields in depth, environmentally friendly mode, and scalable along the value chain.
At the same time, the plan is also to promote the restructuring of industries oriented into a green, highly competitive mode, creating a breakthrough to improve productivity and rapidly increase the contribution proportion of valuable processing and manufacturing industries. In addition, it is to attract the diverse, modern and sustainable services; to form and develop coastal and island eco-tourism resorts, modern, world-class entertainment areas, to develop Ly Son island district associated with Binh Chau and My Khe beaches for them to become a sea and island tourism hub.
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| Dung Quat oil-extracting factory. (Photo: Pham Ngoc Lam) |
Efforts to achieve new goals
In 2024, the Management Board sets a goal for investment into Dung Quat Economic Zone and provincial industrial parks to reach about USD 200-300 million. In particular, Dung Quat Economic Zone and industrial parks focus on developing the ancillary industries for petrochemical refining, metallurgy, mechanical engineering, manufacturing, food processing, beverages, wood processing, electricity and electronics; continue to attract and support industries for the textile and garment industry; it is also to promote the restructuring of industries into an environmentally friendly mode and scalable along the value chain, to create a breakthrough to improve productivity and rapidly increase the contribution proportion of the processingmanufacturing industries of high added values.
At the same time, it is to attract the investment and create motivation for the development of logistics center in Dung Quat seaport area of Dung Quat economic zone, associated with the import-export activities, supporting the promotion activities and connection with provinces located in the Key Economic Zone of Central Region.
It is a mandate to continue the implementation of Resolution No. 26-NQ/TW dated November 3, 2022 of the Politburo on socioeconomic development and ensuring national defense and security in the North Central, and Central Coastal regions to 2030, with a vision to 2045 in Quang Ngai province, in which: the province will actively coordinate with the Ministry of Industry and Trade to develop, complete, approve and organize the implementation of the Projected Plan for Establishment of National Center of Refining, Petrochemical and Energy in Dung Quat Economic Zone; it is needed to approve the project to develop Ly Son island district, Quang Ngai province into a sea-island tourism center, with priority given to calling for potential investors to build infrastructure on Ly Son island.
To attract the investors, the Management Board strengthens and innovates the promotion, creating an open and favorable investment and business environment, especially focusing on promoting advatageous sectors, industries and fields available in Dung Quat Economic Zone and Quang Ngai Industrial Parks.
In parallel with the synchronized investment in infrastructure in Dung Quat Economic Zone and Quang Ngai Industrial Parks, the province focuses on supporting businesses to develop human resources in a sustainable and effective manner. Thus, it is to promote administrative procedure reform and improve state management efficiency with digital technology.
With the potential, advantages and existing development foundation, along with the concern and steering effort and support of the Central Government, and the determination of the leaders of Quang Ngai province, in the coming time, Dung Quat EZ will enter the phase of new development in the direction of "specialized economic zone with green, smart and sustainable development", therefore, it is the driving force and nucleus of socio-economic growth of Quang Ngai province and the key economic region of the Central region.
