With huge potential development, Binh Dinh is proving its role in pushing economic development in the central region. According to the Binh Dinh People’s Committee, the province’s economic growth in 2009 reached 7.96 per cent.

Of which, the agriculture, forestry and fishery sector grew 7.3 per cent, the industrial and construction sector grew 7.43 per cent and the service sector grew 11 per cent.

“Binh Dinh kept high growth last year amidst the economic difficulties in the country. This implies that our province is emerging as an economic hub in the central region,” said Le Huu Loc, vice chairman of the Binh Dinh People’s Committee.

Binh Dinh is 300 kilometres south of Danang and 600km north of Ho Chi Minh City. The province is said to have huge potential to be a driving force for economic development in the overal central region. According to the annual Provincial Competitiveness Index conducted by the Vietnam Chamber of Commerce and Industry and the United States Agency for International Development, which reflects the quality of provincial investments and their business climate, Binh Dinh was ranked 11th in 63 provinces nationwide in 2008 and it jumped to the 7th position in 2009.

Binh Dinh’s Quy Nhon seaport is one among the busiest ports in Vietnam. Last year, the port was reported to handle about 4 million tonnes of cargo, much higher than Danang port—the existing largest port in the central region. Due to its favourable geographic position, Binh Dinh is on the radar of many domestic and foreign investors.

“With its advantageous geographical position and bright economic oultlook, Binh Dinh is a good place to make investments,” said Nguyen Thanh, director of the An Phu Thinh Joint Stock Company. Thanh’s company is now developing a large commercial centre in Binh Dinh. Furthermore, his company plans to build a multi-million dollar residential and tourism project in the province.

According to the Binh Dinh Planning and Investment Department, the province has so far received 33 foreign invested projects with total registered capital of about $420 million. The projects’ investors are from the United States, Japan, China, Korea, the United Kingdom, Singapore, Malaysia, Germany, Thailand and Australia.

The Hong Kong-based Hong Yeung Company is also developing a $30 million industrial park in Binh Dinh’s Nhon Hoi Economic Zone. So far—although the park is still under construction—four foreign investors have registered to build their factories inside the park, with total investment capital of about $100 million.

Wood processing is an attractive industry in Binh Dinh. The province has 400,000 hectares of forests that can provide materials for wood processing plants. So far, more than 110 enterprises have invested into this industry in Binh Dinh and they can export about 22,000 containers of wood furniture on average each year.

Binh Dinh government announced that it would continue encouraging investors to invest in wood processing industry over the next few years. Loc said that the province was also expanding public investments in infrastructure projects to improve its investment climate.

“Although we have been actively improving the infrastructure network and business climate in Binh Dinh, the quality of licenced projects are still below our expectations and the development of some investment projects remain at slow pace,” Loc said. According to the Binh Dinh Planning and Investment Department, some domestic and foreign investors were delaying construction of their projects due to the impacts of the economic slowdown.

Binh Dinh authorities recently revoked investment certificates of the Gemadept Corporation, which had registered to build Nhon Hoi seaport. “In the future we will be very careful in selecting investors for developing projects in Binh Dinh,” Loc said.

The province, which is a center of tourism and shipbuilding in Vietnam, now home to five shipyards including Hyundai-Vinashin, Nha Trang, Cam Ranh, Nam Cam Ranh IP and South Korea’s STX

The Kim Thanh trade and industrial zone in northern border Lao Cai province, the biggest one in the country’s northwest region, was put into operation on Oct. 24.

The zone’s operation will help not only promote the strong development of the Kunming-Lao Cai-Hanoi-Hai Phong economic corridor but also Vietnamese goods easily penetrate China’s market, especially the two countries’ goods showcase at the Vietnam-China international tourism and trade fair slated for November 2 in Lao Cai province.

The 156ha zone encompasses seven small zones, including a management zone, an exhibition-fair and complex trade zone, an entertainment area and a warehouse.

Deputy Director of the Border Economic Management Board and Director of the zone’s Management Centre Nguyen Duc Loi said that so far 32 work items of the zone were built at a total cost of almost 200 billion VND. The zone has to date had 14 domestic and foreign invested projects licensed worth almost 800 billion VND in total, he added.

Nguyen Van Tri, Chairman of the Party Central Committee’s Inspection Commission asked the capital city to create and implement policies for compensation and resettlement.

While working with a delegation of National Assembly Deputies from Hanoi, he requested that the pace of the Hanoi’s projects be speed up.

There are only 11 projects in operation and 6 others are currently being built out of a in the total of 37 projects which are licensed for investment.

According to the overall plan, ratified by the Prime Minister Nguyen Tan Dung in May last year, the Hoa Lac High-tech Park will cover the size of 1,600ha. However, so far only half of the land has been cleared. The technical infrastructure of the park is still very poor, and the transport links are still inadequate.(VOV)

The Vung Ang Economic Zone has a large land fund appropriate for industrial and urban development; in addition, its diversification in terms of topography is potential for the development of trade, services, eco- tourism, convalescence, and especially sea travel and beach tourist services.

Through National Highway No.1A, Ho Chi Minh Highway, and North – South railways, Vung Ang Economic Zone can be economically linked to all regions throughout the country. Taking the National Road No. 8A and 12A connecting to Ho Chi Minh Highway and Cau Treo and Cha Lo international border gates is the shortest route from a Vietnam’s seaport to areas in the Central regions of Lao PDR and provinces in the Northeastern region of Thailand, which is very favourable for the expansion of economic cooperation and development in the region. From Vung Ang – Son Duong deep-water port, taking the international maritime route, it is quite easy to get to countries in South Asia, North America, and Europe.

Vung Ang Economic Zone will be developed into a multifunctional, multi-sectored one with the following focuses:
- Development of Metal refining industry (metallurgy industry) associated with the advantages in terms of natural resources, material sources (Thach Khe iron ore, Titanium, Manganese …), industries of mechanics, motor producing, consumer goods production, electronics, construction materials, ship building and repairing, labor consuming industries and other export oriented ones (which an area of 3000 hectares planned).
- Being a nationally huge center of thermo-electricity with its total generation capacity of 3600 MW located in the Central Region of Vietnam (At present, the construction of the first factory of 1200 MW has been started).
- With the advantages of a deep seaport, that is no deposit, to be out of the wind and considerable land fund available (about 1000 hectare) for construction of ports and post port services, it is very favorable to synchronously develop Vung Ang – Son Duong seaport complex. A step- by -step investment and an effective exploration of 27 existing port wharves in Vung Ang port and 30 wharves in Son Duong seaport will create favourable conditions for easily accommodating vessels and ships between 50,000 and 150,000 deadweight tonnage. In additions, with the development of port services and maritime transport services, Vung Ang will become an important gateway to the sea for the North Central Region of Viet Nam, Laos, Thailand and other countries in the region.

- Together with the development of industries and port services, it will give priority for the development of trade, services, import – export, finance, banking… promotion of investment in eco-tourism (green forest, lake, gulfs…), beach tourism in Ky Ninh, Deo Con, Ky Nam – Ngang Pass (Deo Ngang). This place has been a tourism linkage point within the province and in the North Central region of Vietnam.

Developing the new urban area in Vung Ang in connection with Ky Anh township and the boosting of investment and development velocity of the Economic zone so that by 2015, it will have become a modern urban area, a city of industry, tourism and services having close linkages with other economic zones and urban areas in the region, turning it into an important international linkage point contributing considerably to economic development of the Central Region and whole country.