Success as a “high-end industrial park”
The plan to build an open economic zone (EZ) with a core free trade zone, attract foreign investment, and pilot new economic policies over the past 20 years has not come true.
The main reasons given at many conferences, seminars and reports by authorities are ineffective development institutions and mechanisms; lack of outstanding investment incentives; limited financial resources...
In that context, the results achieved by Chu Lai Economic Zone up to this point mainly depend on the efforts of the locality and Truong Hai Group.
Open seminars over the years, from the central to local levels, have also confirmed the success of this area only as a "high-level industrial park", rather than the success in the role of a national industrial park as expected.
The number of nearly 160 investment projects in operation with a total registered capital of more than 4.5 billion USD after 20 years of Chu Lai Open Economic Zone seems too small compared to the assessed potential of this area.
Quang Nam had to figure out how to do it, ask for mechanisms, and even though there were no breakthrough policies for the free trade zone, it could not be implemented in practice.
The known success of Chu Lai Economic Zone has contributed greatly to transforming Quang Nam from a poor province to a locality that can balance its budget, remitting 10% to the Central Government since 2017 (now up to 18%). The leading crane Thaco leads the growth.
Many investment projects and enterprises in this area have contributed to changing the economic structure and GRDP of Quang Nam, bringing the proportion of industry, construction, trade and services to 88% of the local economic structure, more than 80% of total budget revenue, creating the premise for Quang Nam products to participate in the market and global value chain.
The general planning for the construction of Chu Lai Economic Zone, adjusted in December 2018, has not really taken effect as the planning proposals of investors could not be implemented.
Over the past 5 years, a large number of investment projects registered in this area have not been implemented in practice. Public and private investment projects in this area, whether they are stuck in planning or procedures, also face difficulties related to land reclamation, conversion of forest land use purposes or reforestation.
Thaco has successfully built an auto mechanics center, opening the gateway to the East Sea of Northeast Asia, but has not been able to turn Chu Lai port into a logistics center for transporting goods, international import and export with large output in the true sense when the traffic routes 14D, 14E are still bottlenecks, not easy to resolve in a day or two.
Open opportunities
According to the Quang Nam Province Planning to be announced soon, Chu Lai Economic Zone will become the driving economic zone of the region and the country. It will become the nucleus, the major development center of the region and the country.
The economy of this region will develop in the direction of a circular economy, with high specialization and automation, rapidly increasing the contribution of the processing and manufacturing industry, becoming the main pillar of the local economy.
This area will become an industrial base for automobile, mechanical, electrical and electronic manufacturing and assembly. It will form a national multi-purpose mechanical and automobile center, developing supporting industries associated with logistics services, seaports, airports and railways.
Promote the development of the Central Power Center project in association with industries using energy and post-gas products. Once these projects are deployed on a large scale, this economic zone will be a new development impetus for Quang Nam and the Central region.
In this provincial planning, the KTM Zone is determined to form national-level centers. From seaports, airports, aviation services, electricity, silica, supporting industries to pharmaceuticals... Economic planners predict that the KTM Zone will no longer struggle to find a way to develop in its old, too-tight coat, with enough opportunities for an "investment explosion".
An investment policy agreement between the People's Committee of Quang Nam province and Hyosung Advanced Materials (Korea) on investing in the construction of a cluster of mechanical engineering supporting industry factories in Chu Lai Economic Zone has been signed. The government is reviewing and appraising projects of Vidaxl Group (Netherlands), Karcher (Germany), and Guoguang Electric Company (China).
Parsons Brinckerhoff Company (USA) in Vietnam, Thien Tan Group - Quang Ngai, Jk & D International Group, Ltd (USA), Tedi Consulting Joint Venture (Vietnam) and OCG (Japan), Vietjet Air... have proposed to find investment sources, upgrade and expand Chu Lai International Airport and may return to seek investment research opportunities in the near future.
Mr. Ho Quang Buu - Vice Chairman of the Provincial People's Committee said that through meetings, many businesses want to invest in Quang Nam. Especially the online meeting with the EU in June 2022 and the meeting with the California delegation on August 3, 2023, hoping to welcome a wave of investment from the European, American, Asian business community... into this region.
After the provincial planning is announced, all planning below, including the Chu Lai Economic Zone planning, will have to be reviewed and adjusted in accordance with the provincial planning to ensure greater efficiency and quality!
Chu Lai Economic Zone is still considered one of the most effective economic zones in Vietnam. This area still has a lot of appeal and is still the number one choice for investors when coming to Quang Nam to bet on business.
Quang Nam will find every way to make a breakthrough according to the plan, the stature of a multi-sector, multi-field marine economic zone. The problem at this time is how to realize the planning, which is also a test for the dynamism of Quang Nam, whether it is truly "open" in the true sense and the aspiration of Chu Lai Economic Zone.
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