Central region becoming investor drawcard

10:21' 26/04/2008 (GMT+7)
VietNamNet Bridge - Central Vietnam is emerging as an attractive investment destination with a series of million-USD projects currently underway or slated for construction.
Construction of an ecological resort worth 1 billion USD will begin on April 30 at the Chan May-Lang Co Economic Zone (IZ) in Thua Thien-Hue province.
Phong Nha Cave
Funded by Singapore ’s Banyan Tree Group, the resort will feature 10 five-star hotels, an international conference hall and a modern entertainment centre when it opens in 2014. It is the largest of its kind in the province.
VinaCapital recently broke ground for the central region’s biggest trade complex in neighbouring Danang city. The 325-million-USD complex is the group’s fourth project in the city. The first three projects, currently under construction, are worth 800 million USD in total.
Moves to invest in the central region are seen as clear evidence of the strong appeal of the area, which also features pristine beaches and world cultural and natural heritage sites including Phong Nha-Ke Bang National Park , the former imperial city of Hue , ancient Hoi An town and My Son sanctuary .
VinaCapital Managing Director Brook Taylor said the central region has great potential for development and has experienced rapid change that has created vast opportunities for foreign investors, particularly in information technology, health care and tourism infrastructure.
Local firms are also jostling for their place in the race to invest in the region, with Hanoi-based Finance and Business Development Joint Stock Company (FBS) emerging as a strong competitor. FBS has prioritised the region in its investment strategy with a special focus on real estate in project areas.
In addition to Chan May-Lang Co Economic Zone, other regional industrial zones have also enticed investors at home and abroad. The Dung Quat Industrial Zone in Quang Ngai province topped the list with 90 projects capitalised at 4.4 billion USD.
The industrial zone is followed by Vung Ang in Ha Tinh province, Quang Nam province’s Chu Lai, as well as Nghi Son and Nhon Hoi in Binh Dinh province.
Statistics released by the Ministry of Planning and Investment show that since the introduction of the Foreign Investment Law in 1988, the region has licensed 631 foreign-invested projects with a combined registered capital of more than 10 billion USD, accounting for around 10 percent of the country’s total amount.
In 2007 alone, foreign investment injected 4.2 billion USD into regional provinces and cities, comprising 20.6 percent of Vietnam ’s total volume.
Deputy Minister of Planning and Investment Nguyen Bich Dat says that to make full use of the region’s potential, it should focus on developing infrastructure and human resources, expanding inter-provincial tourism and trade cooperation, and building a strong legal framework to create more opportunities for foreign investors.