Central Vietnam province Khanh Hoa seeks growth momentum from FDI

The south-central coastal province of Khanh Hoa is diversifying approaches to attract foreign direct investment (FDI), with several major projects to be launched, according to the provincial mayor.

According to Nguyen Tan Tuan, Chairman of the provincial People's Committee, 2024 was the most successful year in Khanh Hoa's investment promotion efforts.

In 2024, Khanh Hoa attracted 26 private investment projects with total registered capital of VND50.65 trillion ($2 billion). Seventeen others received capital hikes totaling VND3.9 trillion ($154.36 million), while five projects worth over VND5.35 trillion ($211.75 million) were scrapped.

Several major projects have received in-principle approvals or begun construction. The Department of Planning and Investment has evaluated and submitted investment proposals of large economic groups such as Vingroup, Sun Group, FPT, KN, and Becamex to the provincial People's Committee.

These projects align with the Politburo’s Resolution 09 on the development of Khanh Hoa until 2030, with a vision to 2045.

Tuan also mentioned that during a recent U.S. visit, a Khanh Hoa delegation signed a letter of intent with the Boston Global Forum to collaborate in attracting U.S. investors in investment, education, science-technology, innovation, and application of AI in healthcare. The delegation also organized an investment-tourism-trade promotion forum in the U.S., attended by over 120 businesses.

The visit led to Vietnam visits by several investors and organizations, including Mark Kennedy, director of the Wahba Institute for Strategic Competition at the Wilson Center, Moffatt & Nichol - a global infrastructure advising company, and the Green City Alliance (GCC), all of whom proposed sustainable development projects in Khanh Hoa.

In South Korea, the delegation met with diplomatic agencies and major groups such as Hyundai, SK, SBS Television, and Asiana Airlines to explore cooperation opportunities in economics, tourism, and education.

In 2024, Khanh Hoa received investment proposals from several major domestic and international enterprises. Notable projects include an LNG power plant in Van Phong by Japan’s Sumitomo Corporation, an LNG port in Nam Van Phong by multinational industrial group Stavian, the Ninh Xuan ecological industrial urban area project by the Becamex-VSIP joint venture, and the Nexif Energy Khanh Hoa 1 wind power project by Singapore-Thailand JV Nexif Ratch Energy SE Asia Pte. Ltd.

Several others are under evaluation for in-principle approval, such as the FPT Technology Urban Area project proposed by FPT Software Co. and FPT Danang Urban Development JSC, and the KN Cam Ranh passenger terminal project by KN Cam Ranh Co., Ltd.

Despite these achievements, Tuan acknowledged the slow progress of infrastructure investment in industrial parks and clusters, largely due to delays in land clearance. Challenges in land pricing, clearance, and fee collection have hindered the disbursement of public investment funds.

Notably, investments in the Van Phong Economic Zone have been limited, particularly for key projects under the National Assembly's Resolution No. 55, which outlines special policies for the development of Khanh Hoa.

However, the provincial chairman expressed optimism that several large projects would enter the bidding process in the first quarter of 2025, with implementation expected soon.

These projects include the VND17.33 trillion ($686 million) Nha Trang Mixed-Use Urban Area, the VND5.24 trillion ($207.43 million) Cam Hoa Mixed-Use Urban Area, the VND5.8 trillion Cam Thuong Mixed-Use Urban Area, the VND5.73 trillion Cam Tan Mixed-Use Urban Area, and the VND5.11 trillion Suoi Tan Mixed-Use Urban Area.

Khanh Hoa also plans to expand and upgrade National Highways 26B in 2025, widen the rovincial Road 1B (from Hyundai Vietnam Shipbuilding Co. to Ninh Hoa township), build a provincial children's cultural center, and carry out several resettlement area projects, he added.