Untapped potential

With its 1,400km-long coastline, the region has great potential for developing its tourism services, the aquaculture sector and building deepwater seaports. Lying along Highway 1A and the Ho Chi Minh Highway, it acts as the main artery of the trans-Asia Road and the end of the road for the East-West Economic Corridor. It also has a vast area of forests, fertile land and four world heritage sites.

Along with its abundant workforce, the central region attracts a great number of domestic and foreign investors. Currently, it has 9 economic zones (EZs) and 22 industrial parks (IPs) including well-known ones such as Chan May in Thua Thien-Hue province, Chu Lai in Quang Nam province, Dung Quat in Quang Ngai province, Nhon Hoi in Binh Dinh province and Van Phong in Khanh Hoa province. In 2007, the region licensed 140 investment projects with a total registered capital of US$4.2 billion, making up 28 percent of the country’s total capital from newly licensed projects.

Investment projects have given the central region a facelift. From an impoverished province, Phu Yen has become one of the few areas in the central region taking the lead in attracting foreign investment. Big projects such as the Vung Ro oil refinery, a petrochemical complex and the Nam Tuy Hoa deluxe tourist resort have turned rural poor areas into new urban areas.

Dung Quat EZ in Quang Ngai province, which was the scene of intensive bombardments during the past war, is becoming one of the most dynamic and modern economic zones in the region.

Meanwhile, Khanh Hoa province has generated tens of thousands of jobs for local people after putting into operation big tourism development projects such as Vinpearl Land and Dam Mon.

Over the past 10 years, Da Nang City has attracted more than VND52.5 trillion in investment capital into its economic zones, generating jobs for tens of thousands of people. Many high-rise buildings, technology centres, entertainment and tourist resorts have been built.

Still the Promised Land

The central region is described as a beautiful girl who does not know how to show off her grace. It remains the Promised Land for many investors who come and leave without clinching a deal.  It not only has poor infrastructure and a lack of quality human resources, but is also very limited and outmoded in thinking. 

For instance, every province in the region has an airport, yet none are large enough to handle direct flights abroad. Every province has at least one university, but they are merely local universities and not up to the required standard.

Pham Chi Lan, a Government economic expert, says that the central provinces should take on board new ideas and initiatives and cooperate more closely.

“Even though the central region has a long coastline, it is not realistic to see every province have 1 or even 2-3 seaports like at present,” Mrs Lan. “I think the whole region should only have 1 or 2 seaports but big enough to be able to handle cargoes for large DWT ships.”

According to experts, there is no common mechanism for promoting regional investment programmes and so far these activities have been carried out locally. Provinces are racing each other to develop tourism services and build similar economic and industrial zones without considering their own strengths.

New thinking needed

The central provinces should stick together and look for ways of attracting investment as a region, and not individually.

Duong Anh Tuan, deputy head of the management board of Quang Ngai province’s industrial parks, complains that there are around 5,000 foreign experts working in Quang Ngai, but the province does not provide the basic services to meet their needs and expectations. Meanwhile, its neighbours, Quang Nam province and Da Nang City, do not care about this at all.

Experts suggest that the focus should be on development in areas where they are strong, for instance, petrochemistry in Quang Ngai and tourism services in Quang Nam. With its many advantages, Da Nang City is set to become a financial, banking, property and trade service centre while Hue city is becoming a cultural tourism centre.

Such a harmonious development will certainly attract investors. This also means after a hard working week in Quang Ngai, investors will no longer have to spend money on tours to Thailand or Singapore for the weekend. Instead, they can travel to Quang Ngai’s neighbours which have similar beautiful places and are unspoilt. In addition, the central region needs a coastal road connecting the major tourist sites of Hue, Quang Nam, Da Nang and Quang Ngai.

Nguyen Duc Hai, Secretary of Quang Nam provincial Party Committee says in order to attract investment, the region’s infrastructure needs to be upgraded and this cannot be done by the provinces themselves.

Man Ngoc Ly, head of the management board of the Nhon Hoi Economic Zone in Binh Dinh province raises the question, “Who can put this all together? The task cannot be carried out by one province alone, even Da Nang City which is the biggest economic hub in the central region.”

In his opinion, this requires macro regulations and management from the Government and the Ministry of Planning and Investment. He suggests that a steering committee for the central region’s development be established to address these issues.