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Economic conditions

Dung Quat Industrial Zone Transforms into Economic Zone in Quang Ngai Province

Strategic Insights

— 1 min read

The Politburo has recently approved the transformation of the Dung Quat Industrial Zone in Quang Ngai province into an economic zone. This decision will allow the zone to enjoy preferential treatment, similar to its counterpart, the Chu Lai Open Economic Zone in Quang Nam province. The economic zone will accommodate various facilities, including an industrial park, export-processing sub-zone, specialized port, tourism areas, service areas, administrative areas, and a residential quarter. This move is expected to attract more investors and create job opportunities for both Vietnamese and foreign workers.

Key Takeaways:

  • The Dung Quat Industrial Zone has been allowed to change into an economic zone following a Politburo decision.
  • The new economic zone will have preferential treatment, including the use of all tax revenues for socio-economic infrastructure development and expansion of capital-raising forms, such as government bonds and BOT/BTO/BT work bonds.
  • Investors in the zone will enjoy reduced land rent and taxes, while employees will be entitled to a 5% reduction in income tax.
  • The economic zone will accommodate various facilities, including an industrial park, export-processing sub-zone, specialized port, tourism areas, service areas, and administrative areas.
  • A residential quarter will also be established within the economic zone.
  • The Dung Quat Industrial Zone has completed the first phase of infrastructure construction, attracting 38 projects with total investment of over VND34,800 billion (US$2.2 billion).
  • The zone was established in August 1996 and has been attracting significant investment.

Statistics:

  • The total investment in the zone is over VND34,800 billion (US$2.2 billion).
  • The zone has attracted 38 projects.
  • The new economic zone will allow for projects with investment of up to US$40 million.
  • The zone currently employs both Vietnamese and foreign workers.

Sources:

  • VNA (Vietnam News Agency), 15-09 1433

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