Chu Lai Open Economic Zone (OEZ) in Quang Nam Province was designated as a multi-sector economic zone yesterday, following Prime Minister Nguyen Xuan Phuc’s decision on the zone’s master planning.

The new OEZ, which will cover 27,000ha of Tam Ky City, Nui Thanh and Thang Binh districts, is set to be developed in various industries including automobile manufacture, car supportive industry, oil refinery, high-tech agriculture and more.

The new zone will include seven industrial parks on 4,950ha; four ports and logistics centre; four urban zones and a 4,300ha high-tech farm.

Chu Lai Airport will be upgraded to host 5 million tourists and 5 million tonnes of cargo a year, while Ky Ha Port will be upgraded to host 50,000 DWT (deadweight tonnage) cargo ships.

The four urban zones in the OEZ are set to accommodate a population of 500,000 in 2050, the ministry of construction said.

Speaking at the announcement of the adjusted plan yesterday , PM Phuc praised the efforts from the Chu Lai OEZ authority, businesses and people of Quang Nam in making the zone a key part of Viet Nam’s economy.

“The Chu Lai Open Economic Zone has been face-lifted from a desert with only sun and sand into a dynamic economic hub and a destination for investment. The zone has attracted 158 investors with total investment of US$4.5 billion.

“The zone has been an example of successful economic growth, especially from private sector and foreign direct investment. It has also contributed much to the provincial budget and State budget with huge income,” he said.

PM Phuc said the economic growth of the zone had helped Quang Nam improve from a poor State budget contributor at about VND120 billion (US$10 million) in 1997 to VND23 trillion ($1 billion) now.

He also urged the province, department and Stage agencies to enhance administrative reform to aid investors and offer preferential policies to attract technology transfer and high-quality workers.

He said the zone and the province should plan long-term policies and improve forecasts in terms of market and investment to lure multinational groups to the zone.

Also yesterday, the PM opened a railway flyover roundabout at one of the busiest crossroads on National Highway No 1A, in Nui Thanh District, and a road linking Chu Lai Port to Da Nang-Quang Ngai Expressway.

The flyover, invested in by Truong Hai Automobile Company (Thaco) to the tune of VND600 billion ($26.5 million), will allow non-stop travel on the national highway and hasten the transportation of cargo from the seaport to the road system and Chu Lai Airport.

The PM also applauded Thaco for its contribution of VND70 trillion ($3 billion) to Quang Nam’s budget over the past 15 years.

On the celebration of the 15th anniversary of the Chu Lai OEZ establishment, the central province also handed out investment licences to five new projects from local investors Thaco and Bach Khoa Viet joint-stock company (BKV Petro) and Zuru from New Zealand, with combined investment of $1 billion.

According to the province, Thaco will expand its automobile mechanical complex, aiming at increasing localisation ratio of made-in-Viet Nam car to 40 per cent for export, and will also build a farm produce processing plant with the firm Hoang Anh Gia Lai.

The local car maker plans to construct a 350m pier for hosting cargo ships with 50,000DWT accessing Chu Lai-Truong Hai port.

BKV Petro will also build bio-fuel (E5) and liquefied petroleum gas (LPG) storage at Tam Hiep port in Chu Lai EOZ with total investment of $154 million in 2019-21.

Zuru Building and Construction Company plans to invest $400 million in prefabricated houses using new materials.

To date, Chu Lai OEZ has drawn 43 foreign direct investment projects worth $1.3 billion – 30 per cent of total investment.

According to OEZ authorities, 111 projects worth $3 billion are in operation, creating 20,000 jobs for locals.

Investment projects in the zone contribute about 60 per cent to the local budget annually.— VNS