Wednesday, September 26, 2007

Vietnam's Vung Tau hopes to attract $3 billion in foreign investment in 2007

Sonadezi to develop big IP in Ba Ria-Vung Tau
15:19' 25/09/2007 (GMT+7)

VietNamNet Bridge – Industrial property developer Sonadezi in Dong Nai Province will soon get approval for a project to develop a major industrial and service zone in the southern province of Ba Ria-Vung Tau.

The developer said Ba Ria-Vung Tau authorities had agreed on the Chau Duc zone project and would issued an investment certificate soon so that Sonadezi would start work on the 2,200-hectare zone.

In July, the Prime Minister already agreed in principle to the project.

The zone will include a 1,550-hectare industrial park, while the remaining space will house commercial, residential and service facilities.

The developer said it would make the zone a model industrial area with entertainment parks, a school, a hospital, houses, villas and apartments.

Sonadezi is operating eight industrial parks in Dong Nai Province, six of them having been leased out to investors to set up shop. The other two industrial parks are 30 to 40% full.

Among developers of nearly 150 industrial parks countrywide, Sonadezi is considered one of the most successful developer in attracting capital, technology and environmental protection.

Chau Duc project if approved will take to ten the number of IPs in Ba Ria-Vung Tau Province. Previously, the coastal province had plans to set up six new IPs as well as to expand Phu My II industrial park to accommodate new tenants now that existing industrial estates there have been nearly full.

The six new industrial parks on the tentative list are Phu My III, Chau Duc, Long Son, Dat Do, Kim Dinh and Cai Mep Ha.

Operational industrial parks have so far attracted 140 projects with total pledged capital of some US$6.7bil. Half of the projects are foreign-invested ones with pledged capital of US$4.3bil and the rest are local ones capitalized at US$2.45bil.

In 2006, IPs in the province attracted 12 fresh foreign investment projects worth nearly US$1.36bil, making the province the top destination for investment last year with US$2.26bil in committed investment.

Many investors prefer Ba Ria-Vung Tau as an ideal place for heavy-industry projects thanks to its convenient location and the availability of many ports.

The province hopes that it will be able to attract US$2.5 to US$3bil in FDI inflow this year. Therefore, the establishment of more industrial parks is becoming more urgent.