Phu Quoc Island on its way to becoming Vietnam’s special economic hub
Phu Quoc Island on its way to becoming Vietnam’s special economic hub
News about new projects being implemented, or companies eying investment, on Phu Quoc Island are now released almost on a weekly basis, as Vietnam is fully mobilizing resources to turn its biggest island into a special economic-administrative hub.
Renowned globally as a paradise-like island, Phu Quoc covers 589.23 km2 off the southern province of Kien Giang. Administratively speaking, the island is classified as a district administered by the Kien Giang administration.
Vietnamese Prime Minister Nguyen Tan Dung has approved a plan to develop Phu Quoc into a special economic-administrative region administered by the central government by 2020, according to the Phu Quoc District website.
To that end, the government has created exclusive mechanisms for Phu Quoc, and the island is also enjoying the highest-ever preferential treatments to have its traffic, infrastructure, and energy systems developed up to its potential.
The island, now a popular destination for retreats with its white-sand beaches and high-quality seafood, is attracting increasing investment as it transforms from a resort island into an economic hub.
Phu Quoc has lured around 200 investment projects spanning 8,768 hectares, the Vietnam News Agency said, citing the island’s project management board.
Of these, 112 projects, covering 4,850 hectares with a total registered capital of VND135 trillion (US$6.35 billion), have been licensed.
Eighteen projects, collectively worth VND6.84 trillion ($321.94 million), have been put into operation, 16 are under construction, and developers are completing investment procedures for the remaining, according to the management board.
Many major infrastructure projects have also recently been finished to bring more convenience to islanders and investors, including a 110kV submarine power cable system, a fiber optic Internet cable, and an international airport.
Phu Quoc International Airport was opened to passengers in 2012, and welcomed its first international flight – a direct flight carrying 290 Russian tourists – on February 14.
The airport is capable of handling 2.6 million visitors a year and is expected to serve the development of the island for the next 15 or 20 years, airport director Dao Viet Dung said in a statement.
Phu Quoc was officially connected to the national grid on February 2 with the installation of a $93.4 million submarine 110KV cable system.
While locals in some areas on Phu Quoc used to pay 16 times more than people on the mainland for electricity, the 55.8-km submarine cable brought them more stable and cheaper power, helping to boost tourism on the island.
Phu Quoc received another boost for development last month when a fiber optic cable linking the island to the mainland of Kien Giang was completed, bringing high-speed Internet connectivity to islanders and tourists.
Huynh Quang Hung, deputy chairman of Phu Quoc District, said many tourism projects, especially those to build deluxe hotels, have been actively executed at many beaches on the island, according to the Vietnam News Agency.
Hung was quoted as saying that the district is offering many investment-attracting programs, targeting both local and international investors.
“Some major international groups have been studying investment opportunities on the island, and said they are satisfied with our policies,” Hung said.
More to come
Less than two years after receiving its first international flight, Phu Quoc International Airport has welcomed its second international service, connecting it to Singapore, with the inaugural flight launched on Sunday.
The Phu Quoc-Siem Reap service is slated to begin next month, and a new nonstop flight between the island and the South Korean city of Incheon is under consideration.
National flag carrier Korean Air and South Korea’s Hanjin Travel are working to open the new Phu Quoc-Incheon service, according to the Vietnam News Agency.
“The new nonstop flight between Phu Quoc and Singapore will lure more investors, especially Singaporeans, to Phu Quoc, and strengthen trade ties between the two countries,” the newswire quoted Nguyen Thanh Nghi, deputy chairman of Kien Giang, as saying.
The island will soon see a new passenger port built in Dong Duong Town, which would be capable of receiving up to 190,000 passengers a year by 2020.
Travel agencies from Cambodia and Thailand are also working with their Vietnamese counterparts to offer a three-country tour package by sea travel with a stop on the island.
Kien Giang now eyes the arrival of 1-1.2 million visitors to the island in 2015, and 2-3 million tourists in 2020, with gross revenue amounting to $771 million by then, according to its website.
Prime Minister Dung has recently signed a decision to recognize Phu Quoc District as a level-two township, and the Kien Giang administration is poised to submit its proposal to set up Phu Quoc City administered by the provincial government.
This will pave the way for the island to become a special economic-administrative region by 2020.
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