The abundant potential for tourism and renewable energy development has turned Vietnam’s central region into an investment hotbed.

The central region has given the thumbs-up to exciting ventures
in tourism, renewables, and more. (Photo: VIR)

This year’s Quang Ngai investment promotion conference, themed on accompanying enterprises, was considered a massive success with the presence ofPrime Minister Nguyen Xuan Phuc.

On the occasion, the People’s Committee of Quang Ngai, a province located on Vietnam’s south-central coast, conferred investment certificates and investment proposal approvals for 15 projects worth VND14.53 trillion ($631.8 million) in total value. They also granted certificates to five other projects valued at VND3.64 trillion ($158 million).

One of the most notable projects is the Hoa Phat Dung Quat general container port, to be developed by Hoa Phat Dung Quat Port JSC. The project is valued at VND3.77 trillion ($164 million) in investment capital. There are also a string of hi-end eco-resort projects funded by a diverse group of investors such as Van Tuong 09 Eco-Resort, to be developed by a consortium of FLC Group and An Loc Real Estate Investment and Trading JSC. Two more initiatives – the Van Tuong 10 Eco-Resort and the Van Tuong 11 Eco-Resort – will be developed by Dai Phat International Investment and Development JSC and Van Tuong Investment and Development JSC, among others.

Other noteworthy projects that received investment certificates are the $26 million Mahang Dung Quat clothes and fibres production plant, to be developed by New Mahang Vietnam Ltd., and the $26 million Van Tuong new urban area, which will be developed by a consortium of high-profile investors.

As for local companies, Phu Dien Ltd. has received an investment certificate for the development of the second phase of Bai Dua Resort, with total investment capital of VND270 billion ($11.7 million). Phu Dien Ltd. has also been working on the development of the Coco Land Riverside Resort and Spa venture in Cua Lo area of Quang Ngai province. This resort is expected to welcome first visitors imminently.

Central interest

Besides Quang Ngai, Danang city has also captured great attention from domestic and overseas investors.

In an investment promotion conference held in Danang earlier this year, eight investment certificates were awarded with a total value of nearly $490 million. The city also gave the go-ahead for investment studies into 11 different projects, with a total estimated value of $3.5 billion.

Leading in terms of investment value are the $170 million aerospace component manufacturer facility by US-based Universal Alloy Corporation Asia at Danang Hi-Tech Park, and the $100 million Xuan Thieu Resort’s expansion project by Katsura Hotel Mikazuki Co., Ltd. The remaining projects have investment value from $6 million to more than $50 million each.

At a recent investment promotion conference in neighbouring Quang Binh province, also attended by the prime minister and other top government leaders, the province awarded investment certificates to 36 projects from 23 investors, with a total capital sum surpassing VND29.72 trillion ($1.29 billion).

Besides, Quang Binh leaders gave investment co-operation agreements to 30 projects from 24 investors with a total capital value of VND139.15 trillion ($6 billion).

Among projects receiving investment certificates, the most capital-intensive projects are VND2.34 trillion ($101 million) wood processing venture Okal Quang Binh Wood JSC, the VND1.1 trillion ($47.8 million) 5-star Pullman Quang Binh from Hanoi-Quang Binh Tourism JSC, and the VND868 billion ($37.7 million) SunSpa Dao Yen resort and eco house by privately-held Truong Thinh Group.

In concert with promoting tourism development, Quang Binh has geared efforts towards constantly improving its transport infrastructure system. The province has been inviting investors onto a string of large-scale transport projects with total investment value amounting to several tens of millions of US dollars.

Earlier, Nhat Le 2 Bridge, valued at around VND1 trillion ($43.4 million), was opened to traffic connecting Dong Hoi city centre to Bao Ninh peninsula, and the first international route linking Dong Hoi and Thailand’s Chiang Mai was also inaugurated.

Clean energy appeal

A slew of international investors stepping into Vietnam’s central region shared a common view that besides having fantastic potential for tourism growth, the location provides ideal conditions for renewable energy development.

Vietnam is now currently home to about 50 solar power projects which have already kicked off construction, each having capacity from 30 megawatts to 200MW.

These initiatives have been concentrated in the central region and Central Highlands provinces. Ninh Thuan province takes the lead with 29 projects, while Khanh Hoa province hosts 10. As of now, many of them have already begun generating power.

Most recently, the LIG Quang Tri solar power project, developed by Licogi 13 JSC in Quang Tri province’s Gio Linh district at VND1.13 trillion ($49 million) in total investment value, began generating power for commercial purposes in May. The project was built over nearly 60 hectares with a designed production capacity of 49.5 megawatt peak (MWp).

At the same time, in Phu Yen province’s Phu Hoa district, developer TTP Phu Yen JSC held the launch ceremony of the Hoa Hoi solar power plant, with production capacity of 257MWp and it was built over 256ha space at a total investment value of VND4.99 trillion ($216.7 million).

Also in Phu Yen last month, Phu Khanh Solar Power JSC held a similar ceremony for the Xuan Tho 1 and Xuan Tho 2 solar power schemes. Construction of the two plants, with total investment value of nearly VND2.8 trillion ($121.7 million), began in January across 120ha. Each project has a designed capacity of over 49.6MW and an annual output of about 76.2 million kilowatt hours.

Meanwhile, in April in Ninh Thuan, two solar projects of the largest scale nationally were officially plugged to the national power grid.

The first, also Southeast Asia’s largest, involves three solar power plants with a combined capacity of 330MW in Phuoc Ninh commune, in the province’s Thuan Nam district.

The VND7 trillion ($304 million) project, with scale of one million photovoltaic panels and with BIM Group as developer, aims to turn out about 600 million kilowatt-hours per year and serve 200,000 households annually.

The second initiative is the first phase of a solar power and wind power complex with a combined capacity of 243MW in the province’s Thuan Bac district, with Trung Nam Corporation as the developer.

According to the Ministry of Industry and Trade, by September 2018 more than 120 solar power projects were approved to add to national and provincial-level power planning strategy with total power generation capacity reaching 6,100MW by 2020, rising to 7,200MW by 2030. In addition, 221 projects await approval with total registered capacity surpassing 13,000MW.

These figures far exceed the targets set in the revised Power Development Plan VII, which sets solar power capacity at 850MW by 2020, rising to 4,000MW five years later.