Quang Nam starts two key initiatives for development

Quang Nam starts two key initiatives for development

Prime Minister Nguyen Xuan Phuc yesterday affirmed the Government's commitment to create smooth conditions for investors and ensure that investors benefit when investing in Viet Nam.

He made the statement while attending the inauguration ceremonies yesterday of two key projects in Quang Nam Province – the Nam Hoi An Integrated Resort Project, invested by VinaCapital and Gold Yield Enterprises Corporations, and the expansion of the Truong Hai-Chu Lai Mechanical Automobile Industrial Zone.

Prime Minister Phuc praised the efforts made by the province and investors in starting the construction of these two key projects.

He said foreign direct investment is seen as a key factor for Viet Nam's development.

The Nam Hoi An Integrated Resort Project, situated in the coastal area of Duy Xuyen and Thang Binh districts, will be built on 985ha with a total investment of US$4 billion in seven phases between 2016 and 2035.

The project will become Viet Nam's second largest casino resort after the Grand Ho Tram Strip resort and casino in the southern Ba Ria-Vung Tau Province.

The first stage of the project will be constructed on 163ha with initial capital of $500 million, including an 18-hole golf course and a 1,000-room resort from 2016 to 2019.

According to a project investor, the Hoi An South Development company, the resort project would start operations in 2019, creating 2,000 jobs for local people and an anticipated revenue of VND100 billion ($4.4 million) in the first phase of investment.

The integrated resort project will be developed as the first luxury entertainment and living centre of world class standard in the ideal world heritage sites of Hoi An, My Son Sanctuary and Cham Island.

The project was among 12 that received investment certificates in Quang Nam in March, and 17 projects this year.

Also yesterday, the Truong Hai Automobile Joint-Stock Company (Thaco) commenced construction on the expansion of the Truong Hai-Chu Lai Mechanical Automobile Industrial Zone on 210ha with an investment of VND794 billion ($35.3 million) in Nui Thanh District.

The expansion project would include a new Mazda plant, two new truck and bus plants and other supportive industries for several car models.

The project would produce 215,000 vehicles including touring cars, trucks, buses and vans after starting operation in 2018.

"They are two key projects in boosting the transition of economic structure in the province. These projects will bring huge revenues for the province's budget, create jobs for local residents as well as building sustainable development in the southeast region of province," said chairman of the provincial People's Committee, Dinh Van Thu.

He said the province will create the best conditions for investors to boost the construction schedule.

PM Phuc asked the province and investors to speed up the construction schedule of projects with sustainable development targets to supply multiple benefits to investors, local people and the province.

Automobile industry

The central Quang Nam Province sees the Truong Hai-Chu Lai Mechanical Automobile Industrial Zone as a crucial factor in the automobile development strategy of the region and ASEAN.

The province has started the construction of roads connecting the zone with the Tam Hiep Sea Port and the Da Nang-Quang Ngai Expressway.

Quang Nam plans to open sea route links from the zone to ports in Korea and Japan, creating a competitive advantage for investors.

The Prime Minister stressed that the investment in the Truong Hai company (Thaco) in Quang Nam over the past 13 years has made a great contribution to the development of Viet Nam's automobile industry.

He said he had witnessed the fast growth of Thaco in building a top brand of made-in-Viet Nam automobiles.

According to Thaco's chairman, Tran Ba Duong, the company has invested VND28 trillion ($1.24 billion) in the Chu Lai-Truong Hai Industrial Complex – which has a logistics centre, car production factories, a vocational training college, a sea port and storage system, as well as a shipping service.

Duong said the complex earned total revenues of $2 billion, contributing VND13.8 trillion to the State budget and creating 8,000 jobs for local people.

"We sold over 80,000 cars in 2015, giving us a 38.6 per cent of the Viet Nam Automobile Manufacturing Association (VAMA)'s market share. We plan to produce over 112,000 cars in 2016, with an expected revenue of US$3 billion," Duong said.

Earlier this year, Thaco began operation of a new production line of trailers and special purpose vehicles in the Truong Hai-Chu Lai Mechanical Automobile Industrial Zone.

The Quang Nam-based car producer currently manufactures and distributes models of Kia for South Korea, Mazda for Japan and France's Peugeot.

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