Industrial and Economic Zones

2.1 Dung Quat Economic Zone

 

Dung Quat Economic Zone is located at the half-way point of Vietnam, based on the key Economic area of Central Vietnam with the total area of over 45,000 hectares.

 

The multi-functional Economic Zone of Dung Quat is designed for diversified investment fields, especially large-scale and heavy industrial projects… in combination with developing Dung Quat deep-sea ports system, Chu Lai airport. The infrastructure system of the zone has been invested basically, so far Dung Quat Economic have attracted over 10.5 billion USD, of which implemented capital has reached 5 billion USD, Dung Quat currently accounts for 90% of QuangNgai province’s overall industrial production, export volume and state budget revenue, and the zone is playing a significant role in the economic development process of the locality as well as of the key economic area of Central Vietnam.

 

With the concept of Dung Quat as the driving force of Central Vietnam’s economy in mind, the Vietnamese Government has selected Dung Quat as one of the five coastal economic zones which is given with priority in allocating investment national budget for infrastructure and facilities development to attract investment and facilitate investment implementation.

 

• Dung Quat Development Planning

Dung Quat is the multi-functional Economic Zone and designed for diversified investment fields:

Oil refining, petrochemical, chemical, energy industries (electric-gas), large-scale and heavy industries: steel mill, ship building, mechanical.

Light industries, supporting industries

Port system, logistic;

Township-industrial services…

 

• Infrastructure-facilities

 

5. The deep-sea port system with total area of 1,158 hectares and combined waterfront line of 10 kilometers comprises of:
6. General cargos ports: accessible for vessels of 20,000 DWT-50,000 DWT (4 of 6 ports are completed and currently operational)
7. Specialized ports for large-scale heavy industrial projects: accessible for bulk cargos vessels of 200,000 DWT.
   5. The inner road system has been completed basically to meet the operations of investment projects. The expressway connecting Da Nang with QuangNgai is being constructed and shall be put into operation in 2018;
   5. Chu Lai Airport, which is 5 kilometers away from Dung Quat, provides daily flights to Ho Chi Minh City and Ha Noi, back and forth;
   5. Power supply: a separate power system of 450 MVA for the zone is now available to supply stable power for projects. Investment projects in Dung Quat may have their own transformation station installed on site to supply power;
   5. Water supply: a supply system of 25,000 m3 per day is in operation and is being expanded to increase its capacity to 100,000 m3 per day;
   6. Dung Quat Hospital, with a capacity of 300 beds, is providing medical services to people working for projects in the zone;
   5. Dung Quat Vocational College is capable of training 2,000 students annually in the fields of welding, metal cutting, automobile fabrication, machinery maintenance, petroleum equipment operation, etc. to meet the manpower requirements of investment projects;
   5. Dung Quat Culture-Sports Center with good facilities is the place for entertainment, recreational and sports activities for the people working in the zone.
8. Development updates and plan

There have been approximately 130 projects invested with a combined investment capital of around 10.5 billion USD, implemented capital is approximately 5 billion USD. It is expected that by 2020, Dung Quat Economic Zone will attract a total investment of 13-15 billion USD with implemented capital accounting for 50-60 %.

 

5. Some large-scale plants in operation now, such as:
   • Oil Refinery with a capacity of 6.5 million tons of crude oil per year which will be expanded to reach 8.5 million tons per year.
   • Doosan-Vina heavy industries complex
   • Shipyard
   • Polypropylene plant
   • Bio-Ethanol Plant
   • Cement plant
   • Port system
   • VSIP QuangNgai Industrial park.
6. Encouraged Investment fields in Dung Quat
5. Oil refining, petrochemical, chemical, power industries (electric, gas)
5. Metallurgical industry, consumer goods, textiles, shoes making, building materials;
5. Assembly of automobile and production of related engines, accessories and production of electrical equipment and appliances, electronics
5. Agro forestry, high-tech agriculture products;
5. Seaport related business, logistics
5. Investing and developing infrastructure of industrial parks
5. Investing development urban, worker housing
5. Investing development services, tourism (hotels, restaurants, golf courts, resorts, …)

 

• Investment Incentives and policies
• Corporate Income Tax (CIT) rate of 10% shall be applied for the first 15 years since business commencement; CIT exemption for the first 4 profit-making years and a half reduction for the 9 years thereafter. High-tech projects and those promising visible importance are eligible for the Prime Minister’s consideration of offering CIT rate of 10 % incentive for 30 years;
• Import duties on cargoes imported to form fixed assets of projects shall be exempted
• Import duties on materials, raw materials, semi-finished products which cannot be domestically made shall be exempted for the first 05 production years
• A half reduction of personal high-income tax for the incomes arising at Dung Quat Economic zone
• Land rental exemption:
• Full lifetime exemption for projects which are especially encouraged
• Exemption for 11-15 years for projects which are encouraged
• In addition, QuangNgai province are applying policies to support a part of land compensation fee, labor training fee… to encourage investment into Dung Quat.

 

v  TinhPhong Industrial parks:

 

o    Total land allotment: 350ha, 141.72ha being earmarked for phase I development.

o    Location and investment advantage: Adjacent to national road 1A, located within the Key Economic Region of Central Vietnam, in proximity of Dung Quat EZ, Chu Lai Open EZ, Van Tuong City, 25km away from Dung Quat Port and Chu Lai Airport southwestward, 7km away from QuangNgai railway, endowed with 110kV power transmission station.

o    Investment is promoted for: Production of construction materials, interior decoration materials including wood furniture, porcelain, and general materials.., supply of technology and technical services, especially high technology; manufacture, repair and installation of construction equipment, consumption goods; manufacture of industrial products to replace products for import and export; development of support industries for the province and Dung Quat EZ.

v  QuangPhu Industrial park:

 

 

o    Total land allotment: 120.41ha

o    Location and investment advantage: Situated west of QuangNgai City, 30km away from Dung Quat Port and Chu Lai Airport in the Southwest direction, 2km away from national road 1A westward, adjacent to QuangNgai railway, endowed with 110kV power transmission station.

o    Investment is promoted for:  Industrial projects – export production, animal feed processing, cooking oil, shortening, margarine production, fish feed production, packaging materials PP, PE, label making, sugar by-products, local candies, brown sugar, cracker, cream wafer, chocolate, intravenous drip solution, cinnamon oil extract, agroforestry–fishery products processing, motorbike assembly, electronics, footwear, textile and garments.

 

v  Pho Phong Industrial park:

o    Total land allotment: 143,7ha

o    Location and investment advantage: Located in Central Vietnam Key Economic Region, over 70km distant from Dung Quat Port and Chu Lai Airport in southwest direction, 9km away from national road 1A westward, adjacent to national road 21 going to the west highlands.

o    Investment is promoted for: Projects working on local raw materials such as agro-forestry-fishery product processing, low environmental pollution light industries.

 

 

5. La Ha Industrial Cluster

 

Located in TuNghia District, far from the 1A National Road 01 km; the planning area is 12,82 ha with these industries to calling for investments as woods producing and processing, producing packing, accessories, electronics devices, exported textile – leather – garment producing, producing light bulb and crystal product, processing agricultural and forest products

 

5. Binh Nguyen Industrial Cluster

Located in the Binh Son District, along the 1A National Road; the planning area is 20 ha with these priority industries attracting investment as: producing textile and garment, producing metal products, repairing mechanic, assembling electronics, manufacturing wood products, handcraft and fine arts, Interior decoration, producing foodstuff and confection.

 

5. ThachTru and QuanLat Industrial Cluster

Located in Mo Duc District, the first period planning area is 13 ha; the second period is 27 ha with these priority industries attracting investment as processing exporting forest products, producing bamboo and rattan products, toothpicks, chopsticks, manufacturing construction material....

 

5. Dong Dinh Industrial – Trade village Cluster

 

Located along the inter-district road of NghiaHanh District, far from QuangNgai City 8km; the first period planning area is 10.8 ha, the second period is to the year 2010 is 32.4 ha, and the period after the year 2010 is 43.2 ha with these priority industries attracting investment as: Textile industry, leather shoes, manufacturing mechanics, processing foodstuff, handcraft and fine arts.

 

5. Ba To Town Industrial Cluster

 

Located in Ba To District, the planning area is 18.000 m2 with these concentrating industries as wood processing, preliminarily processing of forestry woods, handcraft and fine arts, bamboo and rattan products, civil woods.

 

5. Sa Huynh Industrial Cluster

Located in Duc Pho District (Pho Thach commune, Thach Bi village); the planning area is 3,369 ha with these industries to calling for investments as repairing and building ships, seafood-processing, wood processing

 

5. Son Hai Industrial Cluster

Located in Son Hai commune, Son Ha district; the planning area is 2 ha with these priority industries attracting investment as processing foodstuff for castles.

 

5. Son Thuong Industrial Cluster

Located in Di Lang Commune, Son Ha District; the planning area is 13 ha with these priority industries attracting investment as: processing agricultural - aquatic - forest products.

 

5. BinhKhuong Industrial Cluster

Located in BinhKhuong Commune, Binh Son District; the planning area is 15 ha. These Industrial groups mainly develop on the agricultural, forestry processing industry: processing woods, rubber.

 

5. Western Chau O Town Industrial Cluster

Locatedin Chau O Town, Binh Son District, the planning area is 10 ha with these industries attracting investment as: handcraft and fine arts, Pottery – porcelain trade village, textile and garment, leather shoes and rush weaving.

 

5. BinhHiep Industrial Cluster

Located in BinhHiep Town, Binh Son District; the planning area is 20 ha with these industries attracting investment as: handcraft and fine arts, foodstuff processing.

 

5. ThachBich Industrial Cluster

Located in TraBinh Commune, Tra Bong District; the planning area is 5 ha with these industries attracting investment as clean water industry.

 

5. Tinh An Tay Industrial – Trade village Cluster

Located in Son Tinh District; planning area is 25,7 ha (in which the first period is 5,7 ha) with these priority industries attracting investment as: processing agricultural - aquatic - forest products and foodstuff, producing textile and garment, agricultural mechanics, producing packing, high-class plastics.

 

5. Son Tinh Industrial – Trade village Cluster

Locatedin Son Tinh District, link the National road 1A to TinhPhong industrial zone (to the North), the planning area is 2.5 ha with these industries attracting investment as: handcraft and fine arts, wood processing, bamboo and rattan products for exporting.​

 

 

It is adjacent to Highway 1A, from QuangNgai City about 08 km, the Dung Quat port 22 km and Chu Lai Airport about 30 km, the Da Nang – Dung Quat highway about 02 km, located in two communes TinhPhong and TinhTho, Son Tinh district in Dung Quat Economic Zone.

 

VSIP QuangNgai covers about 1,746 hectares, of which about 1,226 hectares of industrial park land (located in Dung Quat Economic Zone) and urban land development and services around 520 hectares (located near the center QuangNgai city).

 

VSIP QuangNgai is the system of modern infrastructure and support services to professional customers which give investors a production environment, business and the most effective safety.

 

Target industries include textiles, leather, food and beverage manufacturing, fast-moving consumer goods (FMCG), electronics assembly and other light industries catering to the oil and gas and chemical sectors.

 

Contact:

VSIP QuangNgai Co., Ltd

No. 08 Dai Lo Hu Nghi, VSIP, TinhPhong Commune, Son Tin district, QuangNgai province

Tel: (+84-55).3736666

Fax: (+84-55).3736668