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Dung Quat EZ and Quang Ngai IPs – stand ready to welcome new investment waves.

Following the success of Dung Quat Oil Refinery, Doosan Vina, or VSIP Quang Ngai (Singapore) , etc. Dung Quat Economic Zone and Quang Ngai industrial parks is a reliable destination of major domestic and foreign  corporations such as: Hoa Phat, FLC, Messer Group (Germany), Bekaert SA Group (Belgium), Hoya Group (Japan), etc. So what are the core factors that help Dung Quat EZ and Quang Ngai IPs to attract investors? The following discussion with Vice Chairman of Dung Quat Economic Zone and Quang Ngai Industrial Parks (DEZA) – Mr. Dam Minh Le will be the answer for this question.

    The reason that many investors  choose Dung Quat Economic Zone and Quang Ngai IPs for their investments, partly thanks to DEZA is always interested in promoting administrative reform, building a favorable investment environment. Can you tell me more about this effort?

Member of the Party Central Committee, Secretary of the Provincial Party Committee, Head of the Delegation of the National Assembly of Quang Ngai province Le Viet Chu went to the work site to solve difficulties and obstacles for enterprises in Dung Quat EZ.

With the viewpoint of “success of investors is the success of Quang Ngai province”, in the past time, Quang Ngai province as well as DEZA have always accompanying, creating favorable conditions and supporting investors in Dung Quat EZ and Quang Ngai IPs.

Accordingly, provincial leaders often have a dialoge and accompany with investors; reform and shorten administrative procedures with a quick mechanism. In 2018, the province put the Public Administration Center into operation. It is the one-stop agency of the province, linking the reception of dossiers of administrative results under the jurisdiction of 16 Departments; thereby reducing administrative costs and time for investors and businesses.

Determining that compensation and site clearance is always a big difficulty when implementing the projects, so for the large-scale projects, DEZA proposes to set up a Steering Committee, in which the Chairman or or Vice Chairman  of the Provincial People’s Committee will be the leader of the Steering Committee. Typically projects: VSIP Quang Ngai,the project of  upgrading and expanding Dung Quat oil refinery, Hoa Phat Dung Quat Iron and Steel Complex and FLC Group.

Besides, in order to support investors, DEZA actively coordinated with local authorities to solve specific problems for each project, etc; at the same time, coordinating in propaganda, mobilization and explanation for the people during he process compensation and land clearance; promptly advising and proposing the Provincial People’s Committee to solve and remove mechanisms and policies on compensation and land clearance.

Especially, in the awareness and action of the DEZA’s officers, we always identifies “investors, businesses are the main objects to serve”; therefore, the investment environment in Dung Quat EZ and Quang Ngai industrial parks has been improved positively in recent years.

    In order to attract domestic and foreign investors to Dung Quat Economic Zone and Quang Ngai IPs, in addition to the general incentives according to the central regulations, Quang Ngai province has special mechanisms for Investors?

In addition to the general policies that investors enjoy when investing in any locality, Quang Ngai has issued Decision No.36/2016/QD-UBND. In particular, clearly defining preferential policies, specific preferential rates for land rent, support for compensation, land clearance, investment support for the construction of essential technical infrastructure of the project, construction of waste water treatment process of IPs, ICs, functional areas in EZ.

In which, there are outstanding mechanisms and policies such as leasing land to implement investment projects with the lowest level of 0.5% according to the price bracket prescribed by the Government; support equivalent to 10% of the cost of compensation and clearance for projects with special investment encouragement; support 70% of the infrastructure investment costs inside and outside the project’s fence, for the rural agricultural sector; support infrastructure investment from 50% to 90% and land rent exemption for the whole life of the project in the field of socialization such as education, health, sports and environmental culture; supporting labor training costs, announcing establishment of enterprises, promoting productsm, etc.

    What are the potential industries which promise to create a boost for the development of Dung Quat EZ and Quang Ngai IPs in the near future, sir?

  In addition to the existing industries such as oil refinery, mechanical, light industry, garment, etc the steel rolling industry with the Hoa Phat Dung Quat Iron and Steel Complex and the electricity and gas industry with the Power Plant Project Combined gas turbine from Ca Voi Xanh gas field promises to create a boost for the industry, as well as the socio-economic development of the province in the coming years.

Hoa Phat – Dung Quat Steel Complex has a total investment of VND 52,000 billion, which is gradually completed with a capacity of 4 million tons/year. Hoa Phat Group is striving to bring both phases into full operation in the second quarter of 2020. In order to enhance the closed and modern production value chain of the Complex, Hoa Phat has decided to invest deeply in the chain of products. The first is the Hoa Phat Dung Quat iron alloy production project with a total investment of 3,000 billion VND; Next is the project of manufacturing prestressed steel with the total investment of nearly VND 1,700 billion.

With the electricity and gas industry, Dung Quat Electricity Center will have Dung Quat Power Center consisting of three Dung Quat mixed gas turbine plants I, II and III with a capacity of about 750MW / factory and a reserve area for the  fourth plant in the future. In particular, Dung Quat I and III factories invested by EVN; while Dung Quat II Power Plant is invested by Sembcorp Group under BOT method. Currently, DEZA is supporting and guiding investors to complete all factors related to the project.

According to economic experts, in the coming time, Dung Quat EZ will have a new wave of investors, especially after the Ca Voi Xanh’s gas product is brought ashore. CurrentlyDEZA is reviewing and adjusting the planning of industrial parks in Dung Quat EZ; investing in infrastructure connecting industrial parks, between Dung Quat Power Center and enterprises using gas fuel sources to produce; at the same time attracting projects to use gas products to produce petrochemicals, chemicals, supplying gas fuels for industries to contribute to boosting the industrial development of the province.

    In the decision to adjust the Quang Ngai Industrial Development Plan to 2020 and vision to 2025 issued by Quang Ngai PPC in October 2018, it emphasizes “continue to focus on developing Dung Quat EZ as the province’s growth nucleus and to become a coastal industrial center of the Central region”. So, in order to fulfill the goals, which solutions will the DEZA focus on?

Hoa Phat Dung Quat Iron and Steel Complex.

In the immediate future, DEZA will continue to support investors to deploy projects that are pervasive in attracting investment; promoting on-the-spot investment, focusing on attracting projects from countries such as Japan, Korea, Singapore, America, Europe, etc; cordinate closely with VSIP Quang Ngai, Dae Young E&C Company (Korea) to attract FDI projects. Focus on attracting industries and fields in which Dung Quat Economic Zone and Quang Ngai IPs have comparative advantages, especially those related to the use of deep-water and heavy industries; petrochemicals, chemicals; logistics, infrastructure and port services, infrastructure business, etc.

Up to now, the total number of employees working in Dung Quat EZ and Quang Ngai IPs is nearly 39,000.

In addition, DEZA will also accelerate the investment in EZ infrastructure; focusing on completing Tri Binh – Dung Quat Port route; Dung Quat sand protection project (phase 2) and Dung Quat 1 inter-port route. Simultaneously consult the provincial People’s Committee to propose the Ministry of Transport to invest in the road connecting Highway 24C to Truong Son Dong road to connect with the Central Highlands and Southern Laos provinces to promote the Dung Quat deep-water port.

Thank you!

 From the beginning of the year to the end of May, Dung Quat Economic Zone and Quang Ngai Industrial Parks attracted 18 projects with a total investment of more than 458 million USD, increasing the total  investment projects to 320 with the total investment capital of about 12, 37 billion USD (57 FDI projects with a total capital of 1.7 billion USD and 262 domestic projects with a total capital of 209,485 billion VND). So far, 154 enterprises in Dung Quat Economic Zone and Quang Ngai Industrial Parks have come into operation, creating jobs for nearly 39,000 workers; In addition, there are more than 7,000 employees working in construction and service  in the area.

By T.Giang

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Agency:Copyright by the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority
Email: dungquat@quangngai.gov.vn
Editor:Mr.Dam Minh Le - Vice Chairman
Address: Van Tương New urban area - Binh Son District - Quang Ngai Province
Tel: 0255.3645828 / 3640442 * Fax: 0255.3645828