At a meeting with Ba Ria-Vung Tau People's Committee on December 4, Hyosung Group (South Korea) said that it would invest in a factory project in Phu My 2 Industrial Park to produce a biofiber (the raw material for making spandex fabric) from raw sugar, with an investment capital of about $720 million.

"We are also planning to strengthen our production capacity in the industrial material sector by continuously expanding our tyre and steel cord businesses. Furthermore, we are reviewing investments in high-tech materials such as carbon fibre, aramid, and biodiesels," said a representative of Hyosung Group.

Hyosung, founded in 1962, is based in South Korea and manufactures electrical transformers that are exported to 70 countries around the world. The South Korean group has invested $1.4 billion in the province to date.

Good place for birds to perch

Together with South Korean interests, many other foreign investors are eyeing Ba Ria-Vung Tau. In November, Pham Viet Thanh, Chairman of Ba Ria-Vung Tau People’s Council had a meeting with US Ambassador to Vietnam Marc E. Knapper and a working group from the US Consulate General in Ho Chi Minh City when the two sides planned to boost cooperation on seaports, renewable energy, human resource training, logistics, and tourism.

Currently, the United States is the third-largest foreign investor in the province, with nine projects totalling about $4.3 billion.

According to a report from the people's committee, the province's foreign direct investment attraction in the first 11 months of 2023 increased by 93.8 per cent on-year and surpassed the set target by 51.3 per cent, hitting a figure of $1.37 billion.

This result is attributed to its appropriate strategic orientation, efforts to improve the investment environment, and favourable policies and mechanisms.

Moving towards a green economy

In November, the Long Son petrochemical complex, invested in by SCG (Thailand), was completed and is expected to be put into commercial operation in early 2024, generating a revenue of about $1.5 billion. Each year, the project will contribute $150 million in VAT to the province.

The Long Son petrochemical complex

In October, the liquefied natural gas (LNG) terminal, with a total investment of VND6.5 trillion ($274 million), was inaugurated. So far, this is the first terminal in Vietnam that can receive imported LNG.

These projects are expected to create motivation for the development of the oil and gas industry in Ba Ria-Vung Tau.

The province has also focused on sci-tech development, high-quality human resources training, environment protection, and administrative reform to remove difficulties related to compensation and site clearance for oil and gas projects.

The province's industrial parks (IPs) will prioritise attracting large projects that apply advanced technology and will draw supporting industries, such as logistics.

Ba Ria-Vung Tau also invested in a system of roads connecting the Cai Mep-Thi Vai port cluster with national highways, regional belt roads, and Long Thanh International Airport.

Currently, Ba Ria-Vung Tau is on the road to building a model IP with aid from the Japanese government to increase competitiveness, attract investors, and create jobs.

Le Viet Phuc, vice director of the Ba Ria-Vung Tau Industrial Park Management Board, "By building model IPs, they will be upgraded to achieve sustainable development in the province. The Industrial Park Management Board and all related parties will benefit from this."

It plans to develop key routes such as Bien Hoa-Vung Tau Expressway, Beltway No.3, the connection with Ho Chi Minh City, the Cai Mep-Thi Vai inter-port transportation system, and the railway.

The area will also be attached to seaports, connecting Dong Nai with Vung Tau in the North-South direction, and the Thi Vai-Cai Mep-Ganh Rai Bay area to Highway No.56 from East to West.

Nguyen Anh Triet, director of Ba Ria-Vung Tau Industrial Parks Management Authority said, “To attract investment in our IPs, it is necessary to improve the business environment. This will raise the Provincial Competitiveness Index and create the conditions to mobilise resources.”

To increase investment, the province has asked various state management agencies to carry out investment promotion programmes and issue a list of projects that are calling for funding over the 2023-2025 period.

Promising growth from the marine economy

In late March, the Cai Mep-Thi Vai port cluster welcomed the world's largest container vessel, OOCL SPAIN, at Gemalink International Port.

Cai Mep-Thi Vai Port is the largest deepwater port in Vietnam, and is ranked 19^th in the world. It is an international transshipment centre with a channel depth of 16m. Furthermore, it is the only seaport in southern Vietnam with direct shipping routes connecting Europe and America.

According to a report by the Vietnam Maritime Administration, the Cai Mep-Thi Vai port cluster currently accounts for more than 16 per cent of the total volume of goods handled through seaports nationwide, 35 per cent of the country's container throughput, and half of the South's regional container volume.

Early this year, Ba Ria-Vung Tau People's Committee and the Ministry of Transport organised a construction ceremony for the upgrade of Cai Mep-Thi Vai Channel to accommodate ships from 160,000 to 200,000DWT. The project is expected to be completed in 2025.

The Cai Mep-Thi Vai port cluster is promising to become a key link in the global network of the world's leading shipping lines. It has been approved to become an international transshipment port according to the master plan for Vietnam's seaport system for the 2021-2030 period.

In October, the first inland container depot (ICD) in the province came into operation in Phu My 3 Industrial Park. The ICD was funded by Thanh Binh Phu My JSC with an investment of nearly VND3 trillion ($126.6 million). Covering nearly 38 hectares, this facility has as inland waterway wharf area, warehouses, and a container yard. It is the third ICD in the southern region.