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|The deepwater Vung Ro Bay is suitable for launching major projects|
Catalyst needed to boost Phu Yen’s economy
In the central coastal region, nearly every locality features major investment projects with the capacity to have spillover effects on diverse fields and attract satellite businesses.
Quang Nam province is home to the Chu Lai-Truong Hai automotive engineering complex, which contributes millions of US dollars to the provincial budget each year.
Next to Quang Nam, Dung Quat – Vietnam’s first oil refinery – in Quang Ngai province has laid groundwork for other downstream industrial projects like the polypropylene production plant and the South Korean-invested Doosan Vina heavy industry complex.
Contiguous to Phu Yen is Binh Dinh province, which has seen vibrant development with its high-end FLC Nhon Ly resort complex and Nhon Hoi Economic Zone.
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Tran Du Lich, head of an advisory group studying central coastal region development, commented that to be at the forefront of development, each locality needs to have a ‘conductor’ to lead development.
These ‘conductors’ are major projects that can propel development, and Phu Yen is starting to attract some. In addition to a major project of leading conglomerate Vingroup boosting the trade and real estate market, a $1 billion resort complex called New City Vietnam - Sunrise Phu Yen will set the standard for the hospitality industry with a five-star hotel, restaurant, resort, supermarket, and 36-hole golf course.
The project anticipates appealing to high-end visitors, providing jobs to local labourers, and helping professionalise the local tourism industry’s human resources.
Recently, Rosa Alba Resort – the biggest resort property project to date in the ocean city of Tuy Hoa – was launched by developer Thien Quang JSC. The launch supports Phu Yen People’s Party Committee Secretary Huynh Tan Viet’s statement, “The time for investors coming to localities to learn investment opportunities is over. It is now the time for provincial leaders to find the right investors for their localities.”
With this in mind, Phu Yen People’s Committee Chairman Hoang Van Tra said attracting businesses in the current context is not as easy as in the past. The global economic slump from 2008 up to now has tested businesses, and only those with an advanced capacity were able to survive the tough times.
The problem is that every locality wants to invite powerful businesses to set up within its bounds. “The potential of provinces is somewhat similar. The peculiarity, therefore, might be in their infrastructural factors, policy incentives, or local governments’ goodwill and commitment to support investors,” Tra said.
“Compared to other localities, Phu Yen may face some infrastructure limitations, but the province is committed to pushing up administrative reforms, and accompanying investors doing business in the province,” Tra stressed.
The leaders’ commitment has garnered due rewards, as some leading private groups have located projects in the province. Vingroup opened the Vincom Tuy Hoa shopping centre, and its shophouse project has attracted other developers like Dat Xanh and Tay Bac to the province .
According to the Phu Yen Department of Planning and Investment, the province has changed its approach in investment attraction. This year saw no investment promotion conference hosted, as had happened in previous years. Instead, provincial leaders worked directly with domestic investors coming to the province in search of investment opportunities.
Regarding foreign investors, the province called for support from the Vietnamese trade offices abroad and the Foreign Affairs Department under the Ministry of Foreign Affairs to introduce potential investors to the province.
In past years, many domestic and foreign groups have come and deployed projects in the province, such as Sport ToTo, Thaco, Muong Thanh, Vingroup, and TH Group.
The projects are expected to lay the bedrock for Phu Yen’s future development.