Nguyen Tan Tuan, Chairman of Khanh Hoa People’s Committee, signed a proposal en-route to the government in March seeking approval for revised general planning of Van Phong Economic Zone (EZ) until 2040, with a vision towards 2050, encompassing 150,000 hectares.

Van Phong EZ will cover most of Van Ninh district and some communes belonging to Ninh Hoa town.

Khanh Hoa province aims to turn Van Phong into a multi-sector EZ holding pole position in investment attraction and serving as a driving force for economic development for its neighbourhoods and beyond.

In particular, the marine economy is the foundation buoyed by an international container transshipment port, with logistics, urban services, tourism, and industry playing an important role, besides other sectors. The area is also a centre for tourism services and high-class general entertainment with unique and modern products and services.

In light of the revised planning, Van Phong EZ is also oriented to become a sustainable smart urban development with seamless and modern socioeconomic infrastructure.

Reshuffle boosts investment chances for Van Phong EZ

By 2030, the land for construction of functional areas will be about 14,900ha and Van Phong EZ would accommodate about 350,000-380,000 people.

In February, the Management Board of Van Phong EZ worked with a raft of businesses keen on landing projects there. This is deemed a preparation step in the lead-up to a major April conference, in which Khanh Hoa will bring exposure to the province’s planning scheme and investment promotion for the year.

Over a dozen potential investors have made proposals to invest in Van Phong, including Dong Phuong Petroleum, Stavian Chemical, Trung Nam Construction Investment, Becamex IDC, Sinnec, and Saigon Newport Corporation.

These businesses and others want to invest in refining and petrochemicals, energy, industry, seaport construction, and more.

While those are based in the south of the area, northern Van Phong is alluring services, tourism, airport, and seaport investors such as Sungroup, Novaland, and FPT.

According to Nguyen Trong Hoang, head of Van Phong EZ’s Management Board, with a total investment touching $2.58 billion and an annual capacity reaching 1,320MW, the Van Phong 1 build-operate-transfer thermal power plant is the largest project in the EZ.

As of now, the project has disbursed 65 per cent of its total investment volume. By June, the plant is scheduled to put the first turbine group into trial operation, and will start commercial operation from the third or fourth quarter of this year.

When the plant comes on stream, the project would contribute a significant chunk of money to the provincial budget. To date, Van Phong EZ is home to 98 investment projects, some of which play a marked role in driving provincial socioeconomic development, notably the Hyundai Vietnam Shipyard with capital scale reaching $300 million.

With a headcount of 4,000 employees, the factory contributes tens of millions US dollars to the provincial budget annually; especially, it holds up about 40 per cent of the province’s total export proportion.

This year, the Management Board aims to attract about $1.3 billion worth in newly committed investment volume, and embrace investor selection procedures for projects in Van Phong EZ after the general planning and construction subdivision planning is approved.

The priority fields are believed to be in energy, petrochemical refining, trade, high-end tourism and urban services, seaports, and industrial zone infrastructure.

At the third session of the 15th National Assembly (NA) in June last year, the NA approved Resolution No.55/2022/QH15 on piloting a number of specific mechanisms and policies for the development of Khanh Hoa province over five years.

The resolution regulates piloting a number of specific mechanisms and policies for development, focusing on financial management, decentralisation of state management in diverse areas of planning, land, and the environment, and on the development of Van Phong EZ and the marine economy in the province.