The southcentral province of Phu Yen has attracted major foreign investment projects after years of lagging behind other parts of the country.
In 2007, the province attracted a record US$2.3 billion in FDI, accounting for 7.9 per cent of the country’s total foreign direct investment and ranking fifth among the country’s investment destinations.
Chairman of Phu Yen Province People’s Committee Pham Ngoc Chi attributed the rapid growth to investments in petrochemical projects, particularly the Vung Ro oil refinery plant. Technostar Mangement Ltd (UK) and Russia’s oil company Telloil invested $1.7 billion into the refinery, which is expected to have a capacity of 4 million tonnes a year.
The 380-ha project in Ong Hoa District will be operational in 2011 and reach a turnover of $2.23 billion a year.
These projects will be completed in 2024, with an investment capital of $11 billion including $5 billion from Naptha Cracking oil complex. They will provide jobs for 15,000-20,000 people and have a combined turnover of US$20 billion a year.
Chi said the investment success stemmed from the province’s promotion efforts. In 2007, an investment conference organised by provincial officials in Singapore led to an agreement to invest in the petrochemical industrial park and the oil complex.
Investors from the US, Canada, Japan, Australia, South Korea and Middle East have also flocked to Phu Yen to explore investment opportunities.
Taking advantage of its favourable geological conditions with highway, railway and seaport networks linking the central and the Central Highlands provinces, Phu Yen officials are cooperating with other central provinces to develop major transport infrastructure projects.
These projects involve the railway linking Tuy Hoa (the town of Phu Yen) with the Central Highlands, an underground tunnel through Ca Pass, and the upgrading of highways between the province and the Central Highlands.
Chi said the province will further invest in building Phu Yen into a gateway for the area bordering Viet Nam, Laos and Cambodia via road, railway, waterway and air networks.
The Prime Minister recently approved a plan to establish an economic zone in southern Phu Yen. The 20,370-ha zone will house industrial parks and link up with Vung Ro seaport, Tuy Hoa airport and Van Phong economic zone in Khanh Hoa Province.
