Economic zone offers Dak Lak growth

Economic zone offers Dak Lak growth

The arrival of Hoa Phat Group with a series of multi-billion dollar ventures in South Phu Yen Economic Zone promises to create a new turning point for this coastal economic zone.

According to information from Phu Yen Economic Zone Management Board, Hoa Phat Group is implementing a series of projects in the South Phu Yen Economic Zone, with capital of billions of US dollars.

Hoa Tam Industrial Park (IP) Infrastructure Development, under Hoa Phat Group, is implementing Hoa Tam IP phase 1. The objectives include investing in the construction and business of infrastructure, subleasing land use rights within the complex, and constructing factory and office buildings within the park for lease.

Phase 1 of Hoa Tam IP covers 491 hectares and the cost is approximately $172 million. The construction and implementation schedule is within four years from the date the land is allocated by the competent state authority. According to the zoning plan approved in 2024, Hoa Tam IP will eventually cover over 1,000ha in total.

In addition, Hoa Phat Group is currently carrying out pre-construction steps for Bai Goc Port. It is expected to boast 13 berths, a channel width of 240m, and investment of over $920 million.

Regarding planning, Bai Goc Port is included in the overall plan for the development of Vietnam’s seaport system for the period 2021-2030; and most recently, the detailed plan for the group of seaports, wharves, mooring buoys, water areas, and water zones for the same period approved in January.

South Phu Yen Economic Zone is developing infrastructure, personnel, and green channels for investors

Crucial undertakings

Meanwhile, Hoa Phat Group has established a subsidiary, Hoa Phat Phu Yen Steel, to implement Hoa Phat Iron and Steel Complex in Hoa Tam IP, part of South Phu Yen Economic Zone.

Phases 1 and 2 will each have a capacity of three million tonnes per year. It is scheduled for completion within 36 months after approval and land handover. The total estimated funding is approximately $3.3 billion.

Dak Lak leaders said that these projects play a crucial role in improving logistics infrastructure connectivity, attracting investment, and promoting the province’s economic restructuring.

In May, Hoa Xuan Commune People’s Committee launched a 60-day intensive land clearance campaign for these key projects. The goal for Bai Goc Port is to complete all land clearance before June 30. For Hoa Tam IP phase 1, the locality will hand over 95 per cent of agricultural land to the investor before June 30, while striving to complete the handover of all land by the end of 2026.

According to a report by Phu Yen Economic Zone Management Board, South Phu Yen Economic Zone and five IPs in the east have attracted more than 130 projects with a total registered capital of over $1.3 billion. The average occupancy rate in the operating IPs is over 90 per cent. This year, they have attracted seven new projects and four adjusted ones, with a total registered capital of $76.9 million.

Besides the projects whose policies have been approved by the provincial People’s Committee, many large domestic and foreign investors have come to survey and seek new opportunities in the eastern part of Dak Lak province. From IPs and seaports to high-tech industrial ventures, all are opening up opportunities to form a new growth pole.

To attract this capital, many vital tasks are being implemented by local authorities and relevant departments in the province.

Notably, there are proposals to fund the infrastructure of Hoa Xuan Tay IP by General Construction Corporation of Transport Works 5; the infrastructure of Hoa Xuan Dong IP by Capella Quang Nam; and the integrated complex for the production of refined salt and products from seawater with a total estimated capital of $45 million, by Openspace One.

In particular, there is also a Becamex-VSIP joint venture studying an industrial, urban, and service project with a scale of over 1,900ha.

Economic zone offers Dak Lak growth

Pushing plans forward

Huynh Lu Tan, head of Phu Yen Economic Zone Management Board, said that in recent times, South Phu Yen Economic Zone has attracted the attention of investors because the area has been systematically planned from the general to the detailed zoning plan. Essential infrastructure schemes have also been funded by the province to ensure long-term sustainability.

To attract investors, the management has expedited procedures and reduced processing time by 50 per cent, creating a sense of security regarding the investment environment in the area.

“The picture in South Phu Yen Economic Zone and the IPs in the eastern part of the province continues to show many positive signs. Not only maintaining its attractiveness to domestic and foreign investors, this area is becoming the focal point of many large-scale industrial, logistics, port, and high-tech projects, creating an important impetus for the province’s economic growth,” Tan said.

At a recent meeting with Phu Yen Economic Zone Management Board, Secretary of Dak Lak Party Committee Luong Nguyen Minh Triet said that the zone plays a crucial role in the province’s economic development strategy, and is also a key hub connecting development links between the South-Central Coast region and the Central Highlands.

He outlined several key pillars for the future development of South Phu Yen Economic Zone, including completing the infrastructure system, attracting more strategic investors, advising on development of specific policies to create a green channel, and developing personnel to meet the development requirements of the zone.

According to Dak Lak’s planning orientation towards 2030, the system of IPs and economic zones in the province includes 33 IPs and development of three economic zones: South Phu Yen Economic Zone, with a planned expansion to 50,000ha; a new specialised economic zone in the west covering 50,000ha; and the Dak Rue Border Gate Economic Zone, with a scale of 39,000ha.

VIR