Van Phong Economic Zone in the south-central province of Khanh Hoa is expected to lure VND30-50 trillion ($1.22-2.04 billion) after its subdivision plans are approved, said the economic zone’s authority.
According to Van Phong Economic Zone Authority, in 2023, the unit licensed two new domestic projects with total newly registered capital of VND73 billion ($2.98 million), and approved additional capital of VND22.38 trillion ($913.3 million) for eight projects.
The zone has also welcomed business delegations to explore investment opportunities in areas such as industry, real estate, leisure tourism, and oil and gas.
Among them were large corporations like Sun Group, Saigon Securities Inc. (SSI), Shinec JSC, Saigon New Port HSC, Trung Nam Construction Investment JSC, Sonadezi Corporation, Vietnam-Singapore Industrial Park Joint Venture Co., Ltd, and GS International Services and Investment JSC.
However, the authority acknowledged that attracting investment, especially FDI, in the past year had been difficult, mainly due to pending approval for subdivision plans.
Under the approved adjusted master plan for Van Phong EZ to 2040 with a vision to 2050, the economic zone will have 19 subdivisions covering 75,166 hectares with zones designated for development of seaports, logistics services, urban areas, and resorts.
To date, the authority has mapped out 15 subdivision plans and the remaining four (7, 9, 10, 12) will be completed in early 2024. All of them are expected to be approved this year.
After the subdivision plans are approved, the authority will focus on implementing procedures to attract and select investors, especially strategic investors and industrial park infrastructure developers.
At the same time, it will continue to attract secondary investors, especially foreign-invested ones, to the Ninh Thuy and Suoi Dau industrial parks.
Once completed and approved in 2024, the subdivision plans will be a driving force to attract capital flows into the EZ, according to the authority.
Huge FDI capital flows
As a key economic zone in Khanh Hoa, Van Phong has attracted 28 foreign direct investment (FDI) projects with total registered capital of about $3 billion, of which $2.8 billion has been disbursed.
The most prominent among them is Van Phong 1 BOT Thermal Power Plant with registered capital of $2.58 billion invested by Van Phong Power Company Limited (VPCL) under Japan’s Sumitomo Corporation.
The project started construction in October 2019 with two turbines and a total capacity of 1,320 megawatts. When put into operation, the plant is expected to supply about 9 billion kWh each year to the national power grid.
The project is of significant importance to the socio-economic development of Khanh Hoa province in general and Van Phong EZ in particular.
In December 2023, its actual progress reached 99% of the plan, with disbursed capital reaching nearly $2.3 billion or 87% of total registered capital. The total workforce at the construction site is about 1,856 people, including 197 foreign experts.
In particular, in October 2023, the first turbine was put into commercial operation, starting to supply electricity to the national grid.
Van Phong Economic Zone is also home to a factory building new ships and steel structures invested by the Hyundai Vietnam Shipbuilding Co., Ltd. with a total investment of $290 million.
With a capacity of 800,000 deadweight tonnage (DWT) per year, the factory has revenue of about $400 million and export value of $390 million, and contributes VND120 billion ($4.9 million) to the state budget while employing nearly 3,000 workers.
In addition, there is a $25 million fish farm in Van Phong bay invested by Australis Aquaculture Vietnam Limited.