Dung Quat EZ targets US$12 billion of fresh FDI

Quoc Hung

Pham Nhu So (L), vice chairman of Quang Ngai and head of the Dung Quat EZ Authority, talks to an investor during the break of the conference on Wednesday - Photo: Quoc Hung

Pham Nhu So (L), vice chairman of Quang Ngai and head of the Dung Quat EZ Authority, talks to an investor during the break of the conference on Wednesday - Photo: Quoc Hung

Pham Nhu So, vice chairman of the provincial government, informed 111 projects had obtained investment certificates for development in the economic zone, with total pledged capital of over US$8.5 billion, of which US$5 billion had been realized.

The province sets a high target for investment in Dung Quat EZ, regardless of the falling foreign direct investment (FDI) inflow, because many large-scale projects are being promoted for implementation in this zone, he said.

For example, the project for expansion of Dung Quat Oil Refinery with its capacity raised from 6.5 million to 10 million tons per year is being promoted by the owner Binh Son Oil Refinery and Petrochemical Company. Such a project should cost billions of U.S. dollars, said So, who is also head of the Dung Quat EZ Authority.

Earlier, Binh Son estimated the cost of this project would be around US$2 billion.

In addition, a steel plant with a capacity of seven million tons a year costing about US$4.5 billion will be deployed soon by JFE Steel of Japan.

Other major projects include an Indian-invested pulp mill with an annual capacity of 150,000 tons and a 1,200-MW thermal power plant worth some US$2 billion invested by Sembcorp of Singapore, the last named having been awarded a license last week during Prime Minister Nguyen Tan Dung’s visit.

Vietnam-Singapore Industrial Park Joint Venture Co. (VSIP) is developing the urban, industrial and service complex VSIP Quang Ngai, assisting the province in investment attraction.

VSIP Quang Ngai will cover more than 1,700 hectares, including 600 hectares of industrial space in Dung Quat EZ to be developed in the first phase.

Enterprises renting workshops in this area will enjoy corporate income tax exemptions in the first four years and 50% tax reductions in the following nine years.

VSIP Quang Ngai will attract such industries as food-beverage, fast-moving consumer goods, electronic parts assembly and others serving the gas & oil and chemicals sectors.

The Government has put Dung Quat EZ in the list of six key EZs with priority to receive investment funds. Therefore, the province’s infrastructure will be improved in order to attract investors.

With the nod from the Prime Minister, Dung Quat EZ will be expanded by four times to become a multi-sector EZ rather than focusing on only heavy industries. The expansion will offer more job opportunities for local workers as well as those in nearby provinces, said So.

In addition to incentives offered by the Government, the province has prepared cleared sites to lure domestic and foreign investors. Quang Ngai is striving to become a modern industrial province by 2020, said Cao Khoa, chairman of the province.

So far, Quang Ngai has licensed 282 projects with total registered capital of VND192 trillion, including 22 FDI projects worth nearly US$4 billion.

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