The Millennium Energy Corp of the US has proposed to develop two liquefied natural gas (LNG) project in the
Van Phong Economic Zone in Khanh Hoa Province attracts tens of billions of dollars in 2020. (Photo: SGGP)
Tens of billions of dollars poured into Van Phong EZ
Located in the complex of Van Phong Bay, Van Phong EZ has the advantages and potentials to diversely develop the marine economy. However, until now, Van Phong EZ has merely attracted 158 new investment projects, including 129 domestic projects and 29 foreign-invested projects, with a total registered capital of US$4.1 billion and realized one of $1.15 billion. Many experts said that this is a modest number compared to an EZ, which currently has the most advantages in the Central of Vietnam.
In mid-2020, the Prime Minister approved Khanh Hoa Province’s proposal to temporarily suspend the formulation of the master plan for Van Phong special economic zone, until the law on special economic zones is passed by the National Assembly. Right after the petition was approved, Van Phong EZ has seen great leaps in attracting several large projects worth tens of billions of dollars. Last July, the US group Millenium Petroleum proposed to invest in an LNG project with a capital of $15 billion in Van Phong EZ. The group would build a power plant and a port warehouse for storing LNG in the South Van Phong area, with a capacity of 9,600 megawatts (MWs). The group especially hopes to turn the LNG port warehouse in South Van Phong into the energy hub of Southeast Asia. Not long after that, the good news continued to come to Van Phong, when J-Power, the Japanese Electric Power Development Company, wanted to concretize the investment policy of the Van Phong Combined Cycle Gas Turbine (CCGT) Power Plant project, with a capacity of 3,000 MWs and a total investment of $3.2 billion.
More than 1,000 hectares of clean land welcome investors
With a total area of 1,500 hectares, the large area of vacant land will be favorable conditions for Van Phong EZ to draw investment. Currently, about 200 investors have registered for research. It expects to attract about $60 billion of investment capital in Van Phong EZ in the coming time. Amid the situation that many countries were heavily affected by the Covid-19 pandemic, experts predicted that Khanh Hoa Province would be the top flag in investment attraction this year, with the focus on Van Phong EZ. According to Mr. Hoang Dinh Phi, Head of Van Phong EZ Management Board, Khanh Hoa Province has reviewed and reserved 1,053 hectares of land in Van Phong for investors to choose from to call for investment and make Van Phong become the center of electrification. Currently, investors have aimed at these land locations, especially those investing in LNG power projects. Besides, the infrastructure of Van Phong EZ is rapidly being completed, including the operation of Nam Van Phong service port. The industrial parks in Van Phong have come into operation, and the infrastructure has also been completed synchronously, which is a considerable advantage for Van Phong to attract investment.
Mr. Nguyen Tan Tuan, Chairman of the People’s Committee of Khanh Hoa Province, said that over the past time, the province had made efforts to promote investment attraction programs to create a breakthrough development for Van Phong. Shortly, Khanh Hoa Province would report to the Ministry of Industry and Trade to add four planning locations for LNG power and LNG storage that the province has selected. If the MoIT adds the project to the National Power Development Master Plan 8, it will permit the above enterprises to invest. The ultimate goal is to turn Van Phong become an LNG power center to contribute to local economic development and ensure national energy security, said Mr. Nguyen Tan Tuan.
By Van Ngoc – Translated by Thanh Nha