Notably, the Bus Industrial Centre Co. Ltd of Russia has invested US$1 billion in building a bus spare parts production and assembly plant in Binh Dinh.

With a total investment of US$125 million, the first phase of Vietnam-Singapore Industrial Park (VSIP) has started its first phase in Quang Ngai province. The Vung Ro oil refinery project in Phu Yen has also increased its investment capital from US$1.7 billion to US$3.2 billion while the US$30 billion Nhon Hoi oil refinery project has also got off the ground in Binh Dinh province.

Le Huu Loc, Chairman of the Binh Dinh provincial People’s Committee, says that many investors from Russia, Japan and the Republic of Korea have joined Petroleum Group of Thailand in this major project.

International consultants have already conducted a feasibility study to submit their report to relevant ministries and agencies for approval in April. Shongkala University (Thailand) and Quy Nhon University (Vietnam) has signed a contract on training human resources for the project.  

Loc affirms that Japanese businesses are also keen on building some seafood processing plants, a garment and textile centre and a tourism site installed with a 1.5 km cable system in the province.

Quang Ngai is hopeful that VSIP will attract more FDI in the coming years. Cao Khoa, President of provincial People’s Committee says VSIP has attracted five foreign investors in just three months.

For example, URC Central Company from the Philippines has agreed to build a US$35 million factory to produce Jack& Jill potato chips.  Kingmaker Footwear and Hebei Xindadong Garment and Textile from China have also built US$20 million and US$60 million footwear factories respectively. They are expected to generate 11,000 jobs to local labourers.

In addition, Liwayway Marketing and OceanMaster Engineering from the Philippines also signed a memorandum of understanding (MoU) on building a food production factory.

Meanwhile, Dung Quat economic zone (EZ) has attracted more than US$10 billion in FDI, of which US$5 billion has been disbursed. It is set to attract as much as US$15 billion in FDI by 2015, generate 25,000 jobs and contribute VND25,000 billion to the state budget.

To turn Dung Quat economic zone into an engine of the key economic region, Quang Ngai has proposed applying a Dung Quat city model to overcome the existing shortcomings.

Le Van Dung, deputy head of the Dung Quat Economic Zone management board says the Ministry of Planning and Investment (MPI) is going to submit its proposal for construction of a US$4.5 billion steel factory to the Prime Minister for approval. The project is a joint venture between JFE Steel from Japan and E-United from Taiwan.

If the large-scale project is approved by the Prime Minister in addition to the establishment of the oil refinery, heavy-industry and rolling steel complex will breathe a new lease of life into Dung Quat EZ, Dung affirmed, Dung says.