Vietnam’s central provinces attracted 850 FDI projects worth a total of 25.5 billion USD last year. Thanh Hoa, Ha Tinh, and Binh Dinh are three provinces prominent in FDI attraction in the region. The biggest project is the Japanese-invested Nghi Son Refinery and Petrochemical Complex in Thanh Hoa capitalized at more than 9 billion USD. Tran Hoa, Director of the Management Board of Nghi Son Economic Zone, comments:

“Due to the development of the Nghi Son Oil Refinery project, Nghi Son Economic Zone will open a number of new green industries, and high-tech agriculture, and auxiliary industry, and services. The Government and the Ministry of Planning and Investment have allowed the zone to expand to 45,000 ha. Thanh Hoa province is focusing on improving its investment environment and helping investors deal with administrative procedures and land clearance.”

Other FDI highlights are the Vung Ro Oil Refinery – a joint venture between the UK and Russia in Phu Yen with capital increased from 1.7 billion to 3.2 billion USD -  and a Thai group’s feasibility study for a mega oil refinery in Binh Dinh.

Meanwhile Dung Quat Economic Zone, where the Dung Quat Oil Refinery has become operational, has lured more than 10 billion USD, half of which has been disbursed.

Economists say careful preparation of infrastructure, open policies, and active support for investors have created an attractive investment environment in the central region.

The oil refinery project in the Nhon Hoi Economic Zone in Binh Dinh. (Photo: VNE)

Between 2007 and 2009, FDI totaled a record 11.3 billion USD, up 300% in 19 years. The quality of investment projects has also improved. Oil refinery projects worth dozens of millions of USD are an obvious example. The region has also encouraged  projects in thermo-power, steel lamination, chemicals, high-tech, and auxiliary industries. Local economic and industrial zones are spurring the growth of the entire region.

In recent years, the central provinces have boosted coordination in investment promotion. Frequent inter-regional conferences have been held to give local leaders opportunities to discuss, analyze, and tap the advantages and potentials of each locality.

Each province has identified the areas most suitable for investment. For example, Da Nang will focus its investment in high-tech and finance, while Quang Nam and Thua Thien-Hue will push tourism development. Quang Ngai will pursue heavy industry and Binh Dinh and Phu Yen oil refining. Cao Khoa, Chairman of Quang Ngai’s People’s Committee, says:

“We have been helping investors in a spirit of considering their tasks our tasks and their problems our problems and will work with them to promptly clear the hurdles.”

FDI has contributed 6% of the region’s GDP and generated 66,000 local jobs. A cooperative effort to attract investment has been considered a breakthrough in economic development, job generation, and increased revenues, creating a firm foundation for the region’s industrialization and modernization.