Vietnam’s central province develops manufacturing into a key sector

Quang Binh will focus investment resources on infrastructure and enhance investment attraction to turn manufacturing into a driving force of the province in Central Vietnam.

The province’s master plan for the 2021-2030 period, with a vision to 2050, approved by the Prime Minister’s Decision No. 377/QD-TTg, defines industry a key sector and the driving force to realize its economic restructuring through industrialization and modernization, according to Vietnam Investment Review.

Accordingly, Quang Binh continues to focus on key industries with competitive advantages, such as electricity and renewable energy, agriculture, forestry and fishery products, food, agricultural product processing for export, building materials, textiles, and supporting industries associated with raising the level of tech innovation.

Quang Binh’s industrial sector will feature three regions. The northern region will take Hon La Economic Zone (EZ) as the nucleus with associated areas such as Hon La Seaport Industrial Zone (IZ), Hon La II IZ, Western Gateway IZ, Quang Trach IZ, and several others.

This area serves as the driving force for the development of Quang Binh province over the period from 2021-2030 with a number of key projects such as the Quang Trach I-II thermal power plant. The area will give priority to high-tech and environmentally friendly projects.

The central region encompasses Dong Hoi city and the surrounding area including Bo Trach and Quang Ninh districts, with associated IZs such as Bo Trach, Northwest Dong Hoi, North Dong Hoi, and Northwest Quan Hau. This area gives priority to clean, environment-friendly industries, labor-intensive sectors, advanced technology, and apparel and footwear production.

The southern region encompasses the Cam Lien and Bang IZs in the two districts of Le Thuy and Quang Ninh, south of the Nhat Le River and Quan Hau Bridge.

This region gives priority to agricultural cultivation, industrial crops, agro-forestry-fishery processing industries, construction material production, stone mining, and the development of renewable energy along the coast.

In addition, Quang Binh aims to develop key construction material production hubs in Tuyen Hoa and Quang Ninh districts.

According to Quang Bình People’s Committee, the province aims to reach $2.1 billion (at 2010 constant prices) in industrial production value by 2030, growing by an average 14% annually. The industrial production index for the 2021-2030 period is set to average 13% on-year.

Compared to many other localities across the country, Quang Binh has the potential to attract investment and develop its industrial sector as it benefits from abundant land, available raw materials, and good infrastructure. The province has increasingly focused on synchronous investment.

According to Quang Binh Economic Zones Management Authority, by 2022, the cleared land area in Northwest Dong Hoi IZ reached 66 hectares, the leased land area approximated 36 ha, the area transferred for production and business lease came to 4,616 ha, and the occupancy rate reached 98.9%.

In North Dong Hoi IZ, the cleared land area stood at 83 ha, of which the allocated and leased land area amounted to 37 ha, the area transferred for production and business lease accounted for 12 ha, and the occupancy rate hit 44.5%.

To date, Hon La Seaport IZ has cleared 109 ha, the land area allocated and leased to investors approximates 50 ha, the area transferred to investors for production and business lease sits at 9 ha, and the occupancy rate has reached 47.4%.

As for Hon La II IZ, the cleared land area cleared has reached 19 ha, of which the allocated and leased land area makes up 14 ha. However, the occupancy rate only stands at 11.9%.

Doan Ngoc Lam, Standing Deputy Chairman of Quang Binh People’s Committee, said that to enhance land use efficiency in its IZs, Quang Binh will develop a promotion plan to draw investment into industries and projects in accordance with the IZ planning scheme.

“Besides building criteria to select appropriate investment attraction priorities, the province will carry out monitoring, evaluation, and the termination of projects that are delayed or not deployed to avoid wasting land. Priority will be given to partners such as Japan and South Korea, and key industries such as mechanical engineering, electronics, and other high-tech fields to boost the lease rate,” Lam noted. VIR