Quang Ngai’s incentives will lure in industrial investment

Based on the proposal of the Management Board of the Dung Quat Economic Zone (EZ) and Quang Ngai Industrial Parks (IPs), Quang Ngai People’s Committee in November agreed to implement a project to upgrade and expand the traffic infrastructure system in the Dung Quat EZ, at a cost of $14.58 million.

The activities include upgrading the Tri Binh-Thien Dang route, the Thien Dang-Chu Lai route, the route from Lam Vien to Van Tuong, and a route connecting National Highway 1A, Tinh Phong, and Binh Tan Phu.

The project has been assigned by the competent authority for the medium-term public investment plan towards 2025 with a local budget capital of $4.17 million; the remaining capital will be arranged in the province’s medium-term plan covering 2026-2030.

According to Vice Chairman of Quang Ngai People’s Committee Tran Phuoc Hien, the project is of great significance, aiming to gradually complete the infrastructure system of traffic routes and technical infrastructure, ensuring smooth connection between the Dung Quat EZ and surrounding areas.

“The Management Board of the Dung Quat EZ and Quang Ngai IPs is coordinating with relevant departments, sectors, and localities to review and focus on construction of urgent works in order of priority. In particular, it is necessary to focus on site clearance work, and not to affect the progress of implementation. It must ensure resources to implement the project on time and ensure quality,” Hien requested.

Solid support offered

According to Nguyen Hai Truong, deputy head of the Management Board, the focus has been on building Dung Quat into a specialised, green, smart, and sustainable EZ.

“In order to develop commensurate with the available potential and advantages, the board will focus on implementing key solutions, strictly and effectively implementing approved plans,” Truong said.

“The province will also focus on mobilising and effectively using resources to develop a shared infrastructure system with regional and inter-regional connectivity,” Truong added. “It will coordinate and connect with localities in the region to promote industry clusters at the provincial and regional linkage levels, and promote the application of IT and digital transformation.”

Dung Quat is ready to open its doors to welcome resources and attract businesses to do business in technical infrastructure of EZs and industrial areas. The EZ management board is mobilising all resources to develop the transport system and prioritises key ventures with spillover effects.

“The management board is ready to listen and support investors in all the processes and procedures for their projects. We are eager to renew all promotion and support policies to gradually transform the model of the Dung Quat EZ towards smarter, more ecological, and effective goals,” said Truong.

According to Truong, investors coming to Dung Quat will enjoy a preferential corporate income tax of 10 per cent for a period of 15 years, tax exemption for four years, 50 per cent reduction of payable tax in the next nine years, and tax exemption for imported goods to create fixed assets of the project.

They are also able to access import tax exemption for a period of five years, from the date of commencement of production for raw materials, supplies, and semifinished products that are not produced domestically.

Grasping new options

The key strategy of the Dung Quat EZ is to promote the development of transport infrastructure, such as building axes directly connecting to seaports, airports, and coastal areas, as well as forming key tourism centres and linking internal road traffic with national traffic.

It also looks to form service and tourist urban areas according that are based on ecological models; link urban development with housing development for workers; and prioritise environmentally friendly technology and renewable energy.

Vice chairman Hien said that province is also focused on attracting investment in industrial projects and infrastructure in the Dung Quat EZ and provincial IPs.

Quang Ngai currently boasts the Quang Phu, Tinh Phong, and Pho Phong IPs, as well as the Dung Quat EZ, the Vietnam-Singapore Industrial Park, and 20 clusters.

Among these, many large-scale projects such as the Dung Quat Oil Refinery, Hoa Phat-Dung Quat Steel, and Doosan Vina have brought the industrial sector of Quang Ngai an average growth of 16.8 per cent annually. The proportion of industry and trade services accounts for nearly 80 per cent of the province’s regional GDP.

“With the advantage of a long coastline combined with multimodal transport infrastructure, Quang Ngai will invite and attract investors to exploit the potential for marine economic development, focusing on developing heavy industry with the two key sectors of petrochemical refining and steel rolling; and developing energy and trade, logistics services, and marine tourism,” Hien said.

According to Truong from the Dung Quat EZ Management Board, the province will engage and develop Dung Quat deepwater seaport as a national general port with large-scale specialised terminals associated with the EZ, which can receive ships of up to 250,000 tonnes.

“Quang Ngai will accelerate progress, expanding the petrochemical complex, the core of which is the Dung Quat Oil Refinery, which is currently being funded to expand its capacity to 7.6 million tonnes of crude oil each year; and the Hoa Phat Dung Quat 1 iron and steel complex, with a capacity of 6 million tons annually, which has come into operation,” said Truong.

According to Truong, Quang Ngai is currently implementing the construction of the Hoa Phat Dung Quat 2 iron and steel complex with a designed capacity of 5.6 million tonnes of high-quality hot-rolled steel per year, worth $3.54 billion.

Over the next year, Quang Ngai will call for investment in over 30 initiatives in industry, services, tourism, the environment, urban infrastructure, and more. At the same time, it will seek funding for warehouses, ports, and the establishment of logistics centres.

Nguyen Hoang Giang, Chairman of Quang Ngai People’s Committee, said, “In addition to these priority projects, Quang Ngai is ready to welcome and invite businesses and corporations to take part in large ventures with spillover, connectivity, and high added value, in accordance with the planning and the socioeconomic development situation of the province.”

The central province of Quang Ngai is expected to make several large calls for infrastructure investment in the coming years.

Fully functional industrial park infrastructure and a more open investment environment are factors that have seen investors see the central province of Quang Ngai as a suitable destination.

With its geographical advantages and favourable strategies in attracting sci-tech financial backing, Quang Ngai is gradually becoming an attractive stop for domestic and foreign investors.