Friday, September 14, 2007

The Nhon Hoi Economic Zone (EZ) in the southern province of Binh Dinh has attracted billions of US dollars in investment

Nhon Hoi marks successful investment year

The Nhon Hoi Economic Zone (EZ) in the southern province of Binh Dinh has attracted billions of US dollars in investment, making it among the most successful in the country. Chairman of the EZ’s management board, Man Ngoc Ly spoke with Viet Nam News reporter Le Thu Ngan about the zone’s performance.

Have efforts to attract investments been successful in 2007?

Since the beginning of the year, many investors have come to study the investment environment, conditions and opportunities in the Nhon Hoi Economic Zone. More than 20 delegations from companies in South Korea, Japan, the United States and Thailand have visited.

To date, we have issued 13 investment certificates to investors, attracting a combined VND10.5 trillion (US$652 million). Foreign direct investments make up $299 million, representing 46 per cent of the total.

One of the best results in attracting investments this year has been the co-operation between Taiwan’s Foxconn Group and the provincial People’s Committee that plans to complete three big projects in the Nhon Hoi Economic Zone.

The three projects are a high-tech zone on an area of 700ha, a residential and service complex on 300ha and a resort on Nhon Ly-Cat Tien beach.

What are some of the incentives the EZ offers?

Coming to Nhon Hoi, investors will receive Government incentives designed specifically for provinces with the harshest socio-economic conditions.

Our province also provides investors preferential policies to ensure their rights and greater business opportunities.

Accordingly, projects investing in functional areas (except for urban zones) will receive preferential land prices. Prices are the same for foreign and domestic companies.

Investors will enjoy a 10 per cent preferential income tax for the first 15 years of operation. They will be exempt from co-operate income taxes for four years after generating a taxable income and receive 15 per cent reduction for the next nine years.

Investors will also receive exemptions or tax cuts on leasing land and receive other preferential taxes in accordance with new regulations.

Investors also have the full backing of the Government in land clearance.

For convenience, the province has adopted the one-stop shop mechanism (that limits regulatory red tape).

Individuals and organisations will also be rewarded when they contribute to investment promotion activities.

There are a number of EZs nationwide. How does your zone differentiate itself from others?

The Nhon Hoi EZ is located on the Phuong Mai peninsula. Transportation, electricity and waterworks are in poor condition, but since June 2006 we have invested heavily in improving infrastructure.

Our EZ, though, has many other advantageous transportation factors. It is near international shipping routes, and is an important link connecting Central Highland provinces to Thailand and Cambodia, which have rich natural resources.

The EZ is near the Quy Nhon Sea Port. In 2006, more than three million tonnes of goods was handled at the port. This number, however, was exceeded after the first eight months of this year.

We estimate that more than four million tonnes of goods will be transported through the port this year.

A new port with a capacity of 12 million tonnes a year is under construction to meet demand.

Our EZ is only 6km from Quy Nhon, so we have access to high quality services in the city.

What precautions have the EZ adopted to ensure environmental safety?

Protecting the environment is one of the most important missions for our EZ in achieving sustainable development.

We are addressing environmental safety in three phases: attracting investment, construction and operation.

When attracting investments, we only choose projects that are suitable with our development goals. Projects that are in clean industries or do not heavily impact the environment get preferential treatment.

When building, we enforce measures to ensure limited environmental impact.

The Nhon Hoi Economic Zone has attracted a water treatment project with a 4,000cu.m a day. The water treatment plant is currently under construction.

We regularly supervise investor activities in protecting the environment. — VNS