I4G

3/09/2010

DEZA and JETRO cooperates on investment promotion

DEZA and JETRO cooperates on investment promotion
13:21:37.0, 03-09-2010

<http://dungquat.com.vn/dungquat/UserFiles/Image/jetro(1).jpg>
Jetro's delegates were briefed about the master plan of Dungquat

Delegates from Japan External Trade Organization (JETRO) which is a governmental agency of Japan visited Dungquat Economic Zone
Authority (DEZA) office in Van Tuong on 08 March 2010 to research the business environment and investment incentives in Dungquat in
an effort to promote Japanese investment to the central part of Vietnam.

Receiving Mr. Hiroyuki Moribe who is the Chief of Jetro's Hanoi Representative Office and also the Head of Investment Promotion
Committee under the Japan Business Association in Vietnam (JBA), DEZA's leader appreciated the activities of Jetro in strengthening
the economic ties between Vietnam and Japan, and expected to see Japanese investment flow to Dungquat in a near future. At the
meeting, DEZA representative briefed the guests on the current master plan and expansion master plan, history, progress,
achievements of the economic zone as well as the applicable investment incentives. The two sides also discussed and shared their
ideas on the industrial development orientation, labour forces issues, the advantages and disadvantages of Dungquat and the
prospects of Japanese investment flow to this area.

The two parties are expected to closely cooperate in investment and trade promotion activities.

By TVdanh <mailto:%3cDanh%20Tran%20Van%3etvdanh@dungquat.com.vn>

* [tags tvdanh, dungquat, dung quat, dzungquat, jetro]

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3/05/2010

Quang Ngai to co-host the national forum on sea brand

11:10:12.0, 03-05-2010

A national forum on Vietnam's sea economy strategy will be held in Quang Ngai in the middle of March 2010 with Quang Ngai People's Committee and Ministry of Natural Resources and Environment as the co-hosts. This forum is the chance for policy makers, scientists, businessmen and sea economic experts exchange their studies and ideas on how to implement Vietnam's sea strategy, especially on how to make Vietnam become a nation who is "strong on the sea and enriched from the sea".

The first Vietnam Sea Brand Forum with the theme "Sea Brand in Vietnam – Connecting local areas to the world" was organized in Quang Ninh Province in June 2009. The forum this time in Quang Ngai will focus on exploring the relations between deep-sea ports and coastal economic zones. More than 200 delegates coming from authorities managing the current 15 coastal EZs in Vietnam, ministries and national agencies, businessmen and sea economic experts will attend the forum to present, discuss and share their studies and their valuable experiences in sustainably exploring the sea and island resources of Vietnam when building deep-sea ports and huge industrial parks along the coast.

Dungquat Port is classified as a national port and a regional gateway in Vietnam's seaports master plan. Most of the presentations will focus on applying "marketing places" theory in building the images and brand of Vietnam's sea and of coastal EZs to promote investment flow and international trade; identifying the importance and the role of deep-sea ports in the formation and development of coastal economic zones and in the development of shipbuilding, shipping, heavy industries; planning and building international airports at the deep-sea port provinces to create major hubs linking Vietnam with the world, and a variety of other topics relating to sea economy, nationally and locally.
Dungquat EZ is located in Quang Ngai which is home to the forum this time.

Historically, the discovery of Dungquat Bay in the Binh Son district of Quang Ngai province is one of the motivations and basis for Vietnam Government's decision to build the first oil refinery of Vietnam here and set up Dungquat industrial zone. The construction of a well-sheltered Dungquat port strengthened by a break-water and a sand-prevention dike later made Dungquat become attractive to investors in the field of heavy industries. In the ongoing scheme to expand Dungquat to a vast area of more than 45,000 hectares, Dungquat Port II which is identified as a potential
berths complex to be developed at MY HAN bay will play the role as the gateway of the expansion zone. This planned port will comprise specialized berths capable of receiving ships of up to 350.000 DWT and general cargos berths accommodating 30.000-50.000 DWT vessels.

According to the Prime Minister's Decision on the master plan of Vietnam port system until 2020, Dungquat Port which includes the existing Dungquat I berths and the prospective Dungquat II berths is classified as a national port and a regional gateway.
By TVdanh

2/26/2010

Expressway to promote Dungquat flows

Expressway to promote Dungquat flows

15:45:19.0, 02-26-2010
Deputy Prime Minister has recently agreed to a plan that Vietnam Government will borrow loans from the World Bank and Japan International Cooperation Agency (JICA) to build the Da Nang – Quang Ngai Expressway. This giant project is expected to commence in 2011 and finish in 2014, according to the Prime Minister's Decision on approving the detailed planning of Vietnam North-South Expressway Eastern Network.

Vietnam Expressway Corporation (VEC), which is a state-owned company established by Ministry of Transportation (MoT) was designated to implement this project. In January 2010, VEC contracted Project Management Unit 28 (an experienced affiliating unit of MoT) for the consultancy services during the feasibility study formulation, implementation and handover periods of this project.

Da Nang – Quang Ngai Expressway is a section of Vietnam's strategic North-South expressway network in a development strategy until the year 2020. This section is aligned to the west of the existing national highway 1A, with the start point in Hoa Vang district of Da Nang and the end point located in Son Tinh District of Quang Ngai. The road will be 130.5 km in length, 25.5 meters in width and will have four traffic lanes, four major bridges and one tunnel. The total investment capital was estimated at US$ 2.48 billion, of which the first phase is US$ 1.5 billion.

The highway project is aimed at stimulating the social-economic development of the Central Coast Region, especially of Da Nang, Quang Nam and Quang Ngai. Easier communications will strengthen the commercial links between the there provinces and promote the free flow of traffic for both cargo and passengers among these localities. This section will later connect to the whole national expressway network to become the bloodstream of the national economy. According to Vietnam's expressway detailed planning, the expressway section project linking Quang Ngai and Binh Dinh will start in 2016, while the one connecting Quang Tri and Da Nang will commence in 2015.

The socio-economic development strategy of Vietnam applies harmonized development policy among the North, the Central, and the South of Vietnam. Construction of this expressway section is essential for the socio-economic development and growth of the central region. The development of this expressway network has been identified as one of the key factors for Vietnam economic growth by 2020 and the Da Nang – Dung Quat expressway project has been identified as one of the priority projects. This section is located between Ho Chi Minh City and Ha Noi, in Central Vietnam, with more than 40% of traffic being long-distance traffic connecting Northern and Southern Vietnam.
One of the main drivers for development of this link is the Dungquat Economic Zone which also includes the operational oil refinery and several large-scale FDI projects. New positive progress of this expressway section projects takes place while an ambitious master plan is being worked out to expand Dungquat to a vast area of 45.000 hectares.

By TVdanh

2/03/2010

DEZA's Head Office moved to Dung Quat

16:06:50.0, 02-03-2010

http://www.dungquat.com.vn/dungquat/welcome.do?mod=2 <http://www.dungquat.com.vn/dungquat/welcome.do?mod=2&id=2010/02/1290>
&id=2010/02/1290

After months of construction, DEZA's new office building located in Van Tuong New Urban has been completed. Since January 2010, DEZA
have officially moved all our daily operations from the previous location at Hai Ba Trung street in Quang Ngai city to this new
building in Dung Quat.

The new office building of DEZA

Our mailing address now is:

Dung Quat Economic Zone Authority (DEZA)

Van Tuong New Urban, Dung Quat Economic Zone,

Binh Son District, Quang Ngai Province, Vietnam

Fax: +84(0)55.3645.828

Email: <mailto:foreign.affairs@dungquat.com.vn> foreign.affairs@dungquat.com.vn

Here, our neighbors are Dung Quat Environment Monitoring Center (EMC), Dung Quat Television, Dung Quat Culture & Sports Center, Dung
Quat Vocational College, the dormitories of Doosan Vina Co., of Binh Son Refinery Co. (BSR), the villas of Thien Tan Co..

The new office building of DEZA

We trust that this move and our new premises would create more favorable conditions for the enhanced business activities between
DEZA and the in-zone enterprises as well as surveying investors, and add more lively activities to the Van Tuong New Urban in the
ongoing formation.

By TVdanh <mailto:tvdanh@dungquat.com.vn>

1/08/2010

Doc Soi - Dung Quat 500KV Substation starts operation

Doc Soi - Dung Quat 500KV Substation starts operation

A 500KV Substation installed at Doc Soi in Binh Son district, Quang Ngai which is a point of the North - South 500KV electricity line has been recently put into operation by Vietnam's Electricity Transmission Corporation.

The substation is part of the Pleiku - Doc Soi - Danang 500kV transmission line project which was approved by the government to be invested with a total capital of VND 533 billion (~ US$ 30 million), financed by the World Bank's credit.

In addition to providing electricity to Dung Quat EZ, Chu Lai Open EZ and other localities in central provinces, this substation also helps resolve the overloading situation for the two 500KV Substations in Da Nang and Pleiku.

In order to explore the full capacity of the substation, the Central Power Projects Management Board also installs simultaneously the 220KV transmission lines including Doc Soi – Danang, Doc Soi - Quang Ngai, Doc Soi – Dung Quat ones, and three 220kV substations
located at Dung Quat, Quang Ngai and Tam Ky.

According the design, the capacity of this sub-station is 500/220kV - 2 x 225MVA. Such capacity is high enough to sufficiently provide power for about 10 refineries as big as Dung Quat oil refinery.
TVdanh

12/23/2009

Solutions proposed to increase 2010 FDI inflow

Solutions proposed to increase 2010 FDI inflow
08:14:14.0, 12-23-2009

FDI flow to Viet Nam in first 10 months of 2009, including both new
investment and capital increase, is estimated to reach nearly US$ 19 billion
and is forecasted at US$ 20-22 for the whole year, which is a sharp drop in
comparison with last year's figure. Concerning the global economic crisis,
the FDI flow to Viet Nam in 2009 is still considered a little bit positive;
however, effective and feasible solutions should be envisaged and exercised
to gain a brighter FDI scenario in 2010.

In a recent report on Vietnam's FDI drafted by the Ministry of Planning and
Investment, five categories of solutions are proposed to further improve the
investment environment and make it more attractive to foreign investors.
Among them, policy standardization and infrastructure improvement are
regarded as key elements.

According to the plan, the regulations on enterprises, investment, land
management, construction and business will be reviewed and systemized to
establish a coherent and synchronized system. Besides, the criteria and
conditions for some conditional investment fields will be formulated
comprehensively and clearly, and will be openly publicized so that all the
related parties, especially foreign investors can have full access to such
information. New regulations will be promulgated to govern new-arising
business practices related to foreign investors, while out-of-date, unclear,
conflicting regulations will be revised or removed. Simplified and
transparent investment procedures and "one-stop-shop" mechanism in
procedures processing are believed to help cut down investors' waiting time,
cost, confusions and loss of chance.

The overall infrastructure and utility supplies are always matters of
concern of foreign investors, because these factors directly affect the
smooth operations of their business and their operational costs. The areas
to be extensively focused on include: electricity supply, water supply,
waste water treatment, highways and railways connecting major economic hubs
and seaports, infrastructure and logistics at seaports ... In order to
archive this goal, more incentives on infrastructure development and less
restrictions on some conditional sectors such as port logistics will be
applied to encourage the involvement of private and foreign sectors in these
fields, besides the State's investment.

Also in the report, the issues of building a competent and skilled
workforce, streamlining and harmonizing the economic master plans of
different regions and provinces, improving the professionalism of investment
promotion strategies, activities, speeding up land clearance progress ...
are also important solutions. It's clear that much more work is required to
materialize the targeted US$ 22-25 billion of FDI attraction in 2010, and
it's clearer that no single solution is sufficient, but an overall strategy
to make the general investment climate more attractive and more
business-friendly is necessary.

By TV Danh

12/18/2009

Letter of December 2009

Letter from Dung Quat Economic Zone Authority

December 2009

In Dung Quat Economic Zone now, there have been 111 projects licensed with total registered capital of approximately US$ 7.7 billion, 13 of which are 13 FDI projects, with total registered capital of US$ 3.4 billion; another 28 projects capitalized at US$ 2.7 billion have been approved to be invested. 51 projects are now in operation, with a combined implemented capital reaching US$ 4.1 billion, while 21 other projects are under construction. Since 2006, 50% of state revenues of Quang Ngai province come from Dung Quat EZ. Our Economic Zone’s contribution to the state budget is estimated to be around VND 3 trillion in 2009 and nearly 10 trillion in 2010.

With an aim to rapidly develop the key economic region of Central Vietnam, the Prime Minister promulgated in 2005 the Decision No. 50/TTg to establish Dung Quat EZ and regulate its operational regime, and Decision No. 72/2005/QD-TTg to set up our Dung Quat Economic Zone Authority (DEZA) and regulate our functions, duties, powers and organizational structure. According to these institutional regimes, the vision for Dung Quat EZ is as follows:

· Dung Quat to become a multi-portfolio, multi-disciplinary economic zone, with the driving pillars being oil refining, petrochemical, chemical industries and large-scaled heavy industries including shipbuilding, steel, cement production, container production; and other sectors of consumer goods, cargos for export etc,

· Dung Quat deep seaport, Chu Lai airport and industrial-service urbans of Van Tuong and Doc Soi are core supporting elements of Dung Quat development,

· Dung Quat to gradually play the role as the driving force for the growth and become the industrial-service hub of the key economic region of Central Viet Nam, which stimulates the industrialization and modernization of Central region and the whole country,

· Dung Quat to become a major hub for international and regional trade and transactions.

In Dung Quat EZ, a coherent system of infrastructure and social amenities have been built up to meet the requirements of existing investors and to attract more domestic and foreign investment. Many large-scale projects have been completed and are now in commercial operation, such as Dung Quat Oil Refinery, Doosan-Vina Heavy Industries Complex, Dung Quat Shipyard which is going to finish and launch a 100,000-DWT vessel.

Dung Quat EZ, which covers an area of 10,300 hectares, is strategically located for convenient international and regionally exchange and transactions. Under the official consent of the Prime Minister, the Quang Ngai Province in collaboration with Ministry of Construction are proceeding with a master plan to expand Dung Quat EZ from current area of 10,300 ha to 46,000 ha, in association with construction of a new seaport (Dung Quat Port II) to meet the requirement of an open economy.

With reference to the institutional regulations mentioned above, investors in Dung Quat will enjoy the preferential policies at the highest level that the law of Vietnam defines, as follows:

· Corporate income tax (CIT) rate of 10% shall be applicable within 15 years from the date of production and business commencement

· CIT shall be exempt for the first 04 taxable years and reduced by 50% of payable tax for the 09 years thereafter

· As for high-technology projects and large-scale ones which promises economic – social significance in the region, CIT rate of 10% shall be applicable for the entire project life-time, subject to the consideration and approval of the Prime Minister (practically, Doosan Vina and Guang Lian projects in Dung Quat have enjoyed this special incentive).

· There are some other preferential policies such as: land rental exemption/reduction, special import tariffs for commodities purchased to form fixed assets, reduction of personal income tax and a number of specific policies provided by Quang Ngai province to protect the rights and the business opportunities of the investors.

In addition, DEZA are conducting the reform on the investment procedures to simplify them so that the investors can benefit more from the "one-stop-shop" public services provided by DEZA and Quang Ngai province. A so-call “Investment Assistance Team” under DEZA has been set up to provide guidance, support and consultancy to investors.

With good performance and considerable achievements during the past time, DEZA were granted with the certificate of "Viet Nam Brand in 2008" and selected as "One of the best 500 Viet Nam brands in 2009" by the Association of Science and Technology of Viet Nam. DEZA also received the “Second-class Labor Medal” awarded by the State President; and relevant authorities are considering awarding the “First-class Labor Medal” to DEZA in recognition of our efforts and achievements in the construction and development of Dung Quat EZ.

In the ongoing global economic integration process, DEZA are committed ourselves to affording favorable conditions for the investment and business activities of investors in Dung Quat which are beleived to contribute to the construction and development of the Key Economic Region of Central Vietnam.

It would be our pride and honor to have your business presence in Dung Quat.

With our warm thanks and sincere regards,

Dung Quat Economic Zone Authority