Ba Ria-Vung Tau business climate on the rise
Ba Ria-Vung Tau business climate on the rise
The southern province of Ba Ria-Vung Tau has committed to unlocking its marine economy’s full potential, continuing the transformation of the local economic structure through boosting the services sector and promoting the development of industries, port logistics services, and tourism. These areas have been designated as the central pillars in the upcoming 2016-2020 development period set by the provincial sixth Party Conference Resolution.
To realise these targets, management authorities have scaled up efforts to lay down the groundwork underpinning the province’s socioeconomic development in the upcoming time.
The efforts range from the completion and announcement of Con Dao national tourist resort’s master development plan to 2030, and constant improvements to the provincial investment-business climate, helping to attract more foreign shipping firms to Cai Mep-Thi Vai deep-water port complex, and luring Japanese investors to Phu My 3 Industrial Park (IP).
New master plan for Con Dao national tourist resort
On November 19, the Ministry of Culture, Sports and Tourism, in tandem with Ba Ria-Vung Tau People’s Committee, hosted a ceremony on the announcement of Con Dao national tourist resort’s master development plan to 2030.
Accordingly, Con Dao national resort, belonging to Con Dao district, will consist of 16 islands of various s, covering more than 75 square kilometres in the mainland and about 14,000 square kilometres of water surface area.
Under prime minister’s approval, by 2020 Con Dao expects to receive more than 180,000 visitors, which will increase to 300,000 by 2030, 40 per cent of whom will come from overseas.
Under the prime minister’s directions priority will be given to attracting capable and experienced international investors to expedite major tourism projects having high spillover effects in Con Dao.
Appealing environment for investment
Nguyen Anh Triet, head of the Ba Ria-Vung Tau Industrial Zones Management Authority (BIZA), consistently affirms their commitment to provide the utmost support to investors in provincial IZs.
BIZA officials continually meet businesses to help them tackle difficulties impeding their production and business activities in a timely manner.
In respect to investment consultation, BIZA has made available documents presenting the province’s huge potential and advantages, such as in seaport development and petroleum.
To protect the environment, BIZA focuses on attracting hi-tech projects and those promoting the development of the local supporting industry as well as the ones causing the least environmental impact.
Aside from continually reforming administrative procedures, BIZA has paid due heed to infrastructural investment and development and promoting human resources training to satisfy investor demands.
In 2015, the province’s IZs wooed a total of 15 projects valuing more than $501 million, a six-fold increase against projections.
Special IP for Japan welcomes first project
In November 2015, Phu My 3 IP, regarded as a specialised IZ catering to Japanese investors, has welcomed its first project from Japanese investors.
The wooden furniture-making project, worth $150 million and covering more than 40ha, is run by Nitori Ba Ria-Vung Tau Limited, a subsidiary of Japanese Nitori Holdings.
According to its investment certificate, the project will kick-off construction in June 2016 and will start operations in July 2017, producing about two million items a year and providing jobs for about 1,000 labourers.
Nitori Holdings currently possesses an extensive network of more than 400 wooden furniture supermarkets throughout Japan, Taiwan, China, and the US with revenues reaching $3.8 billion a year.
The group contemplates boosting the number of its furniture outlets to 3,000, striving to make a name among the world’s leading furniture retailers in the foreseeable future.
According to Ishikawa Taku, general director of the Ho Chi Minh City branch office of Japan’s Mizuho Bank, the bank has recently signed a memorandum of understanding with the provincial People’s Committee on providing continued support to Japanese investors in Phu My 3.
“Nitori Holdings’ placing its manufacturing plant in Ba Ria-Vung Tau not only helps to create more jobs for local people and increase industrial production capacity, but also serves as a catalyst to attract more Japanese investors to the province,” Taku said.
Attracting foreign shipping firms to Cai Mep-Thi Vai port complex
By successfully receiving China Shipping’s 366 metres long and more than 51 metres wide super-freighter CSCL Star, boasting a carrying capacity of around 160,000DWT, in late October 2015, Cai Mep International Terminal (CMIT) has made Vietnam one of the three regional countries— alongside Singapore and China that can handle this type of ship.
This opened up a new shipping route between Asia and Europe, which will enhance competitiveness and bring about more opportunities for the container terminal.
By late 2015, Cai Mep-Thi Vai has been part of the 19 international shipping routes frequently visited by leading container firms.
In the first nine months of 2015, 936 ships called on Cai Mep-Thi Vai, including 283 mother ships, each having a carrying capacity of more than 80,000DWT.
Through CMIT, CSCL Asia Pacific deployed services from Vietnam to the Mediterranean Sea, the East Coast and the West Coast in the US, shortening travel times by two weeks.
In respect to transport services to Europe, now it only takes 21 days to reach Le Havre port in France and 22 days to Rotterdam in the Netherlands.
Deputy Minister of Transport Nguyen Van Cong anticipates that Cai Mep deep-water port group could receive big vessels with carrying capacities ranging from 18,000 to 20,000 twenty-foot equivalent units (TEUs, a unit measuring cargo capacity) in the near future.
The Ministry of Transport has then assigned Vietnam Maritime Administration to carry out a master plan on surveying the Cai Mep-Thi Vai channel and devising a comprehensive investment plan consisting of several phases to boost cargo handling capacity.
