Economic zone lures investors

DA NANG — The Lao Bao Special Economic–Commercial Zone in the central province of Quang Tri has attracted 50 investment projects with a total registered capital of VND4 trillion (US$205.1 million), said Nguyen Van Binh, deputy head of the zone’s management board.

Five of the projects are wholly foreign-invested, with a combined capital of VND640 billion ($32.8 million), he added.

To date, about VND810 billion ($41.5 million) has been disbursed for 30 operational projects and 15 are still under construction.

Binh said the results were satisfactory after 11 years of the zone’s establishment, especially at a time when there was limited capital for infrastructure development. Moreover, the Government decisions did approve nearly VND400 billion ($20.5 million) in investment for infrastructure development here.

Foreign trade through the Lao Bao international border gate had increased significantly with the development of the zone, said Binh. Import-export values last year totalled $278 million, up 46 per cent over the previous year.

"The zone is now considered as a driving economic force in Quang Tri Province," he said. "It has also proven its role in taking advantage of the East-West Economic Corridor."

He said the zone had made an important contribution to local economic growth as well as changes to the economic structure. For the past few years, industrial production value increased by 32.5 per cent per year on average and services rose by 28.3 per cent per year. The agriculture, forestry and aquaculture sectors expanded by 14.8 per cent per year.

Over the last five years, 3,000 jobs were created for the local community and an average of VND33-40 billion ($1.7-2.1 million) was contributed to the State budget each year.

Binh said Lao Bao was set to contribute about 28 per cent to Quang Tri’s total production value and 35 per cent to the province’s total foreign trade turnover by 2015. He expected the zone to lure 10-15 investment projects every year over the next five years.

Priorities for the zone’s development in the coming years should include improving infrastructure, training human resources and boosting co-operation and communication linkages with other countries in the region, especially Laos and Thailand, he said.

"The Government should assure stability and consistent policies for the zone, especially preferential treatment for investors and enterprises," Binh suggested. The zone’s area was expected to expand from 15,800ha to 18,200ha over the next 15 years, according to Binh. — VNS

Sectors calling for investment

Production:

· Agro-forestry products, foodstuff, beverages

· Cosmetics, curative medicines

· Livestock feed, fertiliser

· Plastic products, office equipment

· Construction materials: bricks, tiles, iron and steel

Processing and installation

· Electronics, electricity, automobiles, motorbikes

· Garments, lace-embroidered products, sport footwear

· Mechanical products, fine wood products, interior decorations

· Packaging

Trade and services

· Supermarkets, duty-free stores, offices for lease, trade fairs, exhibitions

· Bonded warehouses

· Hotels, restaurants, domestic and international tours

· Cultural, entertainment and amusement services

Others

· Banking and insurance

· Transportation, post and telecommunications

· Building houses for sale/lease

· Vocational training, healthcare