Investment in Vietnam
Vietnam Industrial Parks and Export Processing Zones

DUNG QUAT ECONOMIC ZONE

The multi-functional Economic Zone of Dungquat  is the first petrolchemical complex in Vietnam . It lies in the Central key economic region and is managed by Dungquat Economic Zone Authority.

DUNG QUAT ECONOMIC ZONE AUTHORITY (DEZA)

Add: 39 Hai Ba Trung St. , Quang Ngai City , Quang Ngai Province.
Tel: (84) (055) 818384  -818886
Fax: (055) 818382
Email:ipc@dungquat.com.vn
Website: www.dungquat.com.vn
Chairman: Tran Le Trung
Contact: (84) (055) 818886

HANOI REPRESENTATIVE OFFICE

Add: 12th Floor, 59 Quang Trung St , Hai Ba Trung District, Hanoi
Tel: (04) 9435072
Fax: (04) 9434987
Email: dzungquathn@fpt.vn

HOCHIMINH CITY REPRESENTATIVE

Add: 18 Pham Ngoc Thach, District 3, Ho Chi Minh City

Tel & Fax: (84) (08) 8275002

Email: dungquathcm@hcm.vnn.vn

1. LOCATION

Dung Quat Economic Zone (EZ) is located at Quang Ngai province, close to National Highway 1A, the North-South railway and National Highway 24 which leads to the Central Highlands and is one of the five horizontal routes of the trans-Asia road linking countries in the sub-Mekong region.

• Dung Quat EZ has ideal conditions for the construction of a big deepwater seaport at Dung Quat Bay, 90km from the international maritime route.
• is on the international air route leading to big economic centers in the region such as Hong Kong , Singapore , and Bangkok .

2. SCALE, PROPERTIES AND PLANNING Of DUNG QUAT EZ

With an area of 10,300ha, Dung Quat EZ is divided into the following four sections:

a) Heavy Industrial Zone (EAST):

Total area: 4,316 ha, inclusive of 1,500 ha of industrial area.

Designated for sectors of the heavy industry and comprises 4 sections:
* Section 1: The oil refinery and its supporting infrastructure - 417 ha.
* Section 2: Petrochemical and chemical plants - 522 ha.
* Section 3: Port-adjacent plants - 335 ha: steel mill & roll complex, shipyard, heavy equipment...
* Section 4: Other plants.

Light Industrial Zone (WEST):

Serving the light industries such as textiles and garments, mechanical products, electronics, construction materials and consumer goods. The total area is 2,100ha, including 1,400ha for industrial land.       

c) Dungquat Deep Seaport:

The port has an average water depth of 19.00 meters, covering an area of 1.160 ha, inclusive of 458 ha of utilizable water surface and 421 ha of back-up land and port facilities (located in the territory of the East IZ). It is a well-sheltered port which is  reinforced and prevented from affect of strong wind and waves by a breakwater (length: 1,600 m, height: 27m, width: 15m), and a sand dike (length: 1,750 km), which are under construction.

d) Van Tuong New City:

An industrial service town and a financial center to serve Dung Quat EZ. The total area is 2,400ha, including 1,400ha for houses, offices, and service establishments and 438ha for sea-ecological tourism resort.

3. UTILITY

a) Transport

• The road system in whole Economic Zone connected to National Road 1A, HoChiMinh National highway to the Mekong Delta Countries.
• The road system in whole Economic Zone connected to National Road 1A, HoChiMinh National highway to the Mekong Delta Countries.
• Deep-water level port of Dungquatis a close-port of Vietnam with the reclamation and dyke
• is recovered, it has put into operation in the first quarter of 2005. The first stage will supply services for domestically passengers and the second stage will supply services for international demands as well as goods transit point.

b) Communication

An electronic telephone exchange has 8630 lines and provides mobile wave coverage all over the Economic Zone. 

c) Utilities

• National resource of electricity via the transformer station 500/220KV-250MVA, 220/100KV and 110/22KV.
• Water supply with a capacity of 15,000 /m³/day
• Initially, each section of Dung Quat EZ will have a waste water treatment station. Big factories on the unprocessed land have their own waste water treatment systems.
• Two places for solid waste.
• is now expected to produce 2,000 students who are trained for investor's requirement..
• A 300 bed hospital is under constructiontion (100 beds for the first  completed phase).

4. INFRASTRUCTURE FEES

a) Land rent:

• Rental price of land at East Heavy Industrial Zone (compensated, groung-leveled and infrastructure available): US$ 40,000-70,000/ha/70 years .
•  Rental price of land at West Light Industrial Zone (compensated, groung-leveled and infrastructure available): US$ 30,000-50,000/ha/70 years .

b) Power price: 7 U.S. cents/kWh on average.

c) Water price:

Fresh water price: U.S$0.25/m³.

Industrial water price: US$0.1/m³.

5. SUPPORT SERVICES IN DUNG QUAT EZ:

• Provide fast food and industrial meals.
• Trade real estate.
• Provide investment consultations.
• Act as a general agent to consume spe­cialized goods.
• Construct infrastructure, premises, ware­houses, yards and other facilities.
• Provide financial, banking and export­-import services.

6. INCENTIVES FOR INVESTORS

• Dung Quat EZ is located in a special area where investment is promoted, so the corporate income tax rate of 15 years of preferential tax rate as low as 10%, including 4 years of tax exemption and 9 years of haft-redution.Moreover, high-tech projects and those promising visible importance are eligible for the Primes Minister's consideration of offering full-duration 10% tax rate incentive. Those projects which export 80% of their products are given incentives as export processing businesses.
• Dung Quat Economic Zone Authority has enough authority to undertake investment procedures in Dung Quat under the "one stop" mechanism.
• provides free training to technical workers at the request of businesses in Dung Quat EZ.

7. INVESTMENT ATTRACTION

A total of 62 projects have been licensed, with a registered capital of USD 4.54 billion. 23 of them are already in operation (updated 8th August 2006).

30 projects have been issued with in principal approval, combined registered capital of USD 500 million (updated 8th August 2006).