Cha Lo Border Gate Economic Zone - Quang Binh

Overview of Cha Lo Border Gate Economic Zone – Quang Binh:

The Cha Lo Border Economic Zone was established by the Prime Minister in Decision No. 137/2002/QD-TTg on October 15, 2002. On February 21, 2014, the Prime Minister issued Decision No. 283/QD-TTg approving the master plan for the construction of the Cha Lo International Border Economic Zone until 2030.

They are comprehensively developing the Cha Lo Border Economic Zone to become the economic and urban center in the western part of the province. It serves as a transshipment hub, a center for import-export of goods and services, and integrates economic development with labor redistribution and population distribution in order to improve the material and spiritual lives of the people. It ensures security, defense, and strengthens foreign relations with regional and international countries, particularly with Laos.

The Cha Lo Border Economic Zone has become a prestigious, modern international border crossing for strong development.

The “Trans-Asia Highway” 12A connects major economic centers of Vietnam, Laos, Thailand, and Myanmar

It starts from Ba Don town, north of the Gianh River, and goes through Heaven’s Gate-Cha Lo to Mawlamyine city in Myanmar.

Geographical location:

This border economic zone covers an area of 53,923 hectares and encompasses 6 communes: Dan Hoa, Trong Hoa, Hoa Thanh, Hoa Tien, Hoa Phuc, and Hong Hoa in Minh Hoa district, Quang Binh province.

Boundaries and scope:

• To the north and northeast, it borders Tuyen Hoa district.
• To the south, it borders the communes of Xuan Hoa, Yen Hoa, Hoa Hop, and Hoa Son.
• To the west, it borders the Lao People’s Democratic Republic.

This economic zone is located along National Highway 12A, connecting Vietnam and Laos. It is adjacent to the economic corridor along the Ho Chi Minh Road, the Hon La economic zone, and is suitable for the development of the North Central Coast and the West-East economic corridor. It fosters seamless connectivity and robust collaboration with neighboring border economic zones in the vicinity, including Lao Bao, Cau Treo, and Vung Ang.

The Lao government has invested in, upgraded, and expanded the section of road from the Friendship Bridge 3 to Cha Lo. They have constructed new inter-agency control stations and customs inspection yards to ensure efficient facilitation of trade activities in the area.

Infrastructure of Cha Lo Border Gate Economic Zone – Quang Binh:

Internal transportation:

• According to the terrain, the road network is designed in a mixed fishbone pattern, closely following the existing conditions. The vertical axes consist of National Highway 12A, National Highway 12C, and the Ho Chi Minh Road section passing through the economic zone. Horizontal axes connect residential areas with each other, forming regional road networks.
• In terms of urban transportation, they strategically develop the three primary urban areas of Hoa Tien, Hong Hoa, and Y Leng around National Highway 12A, National Highway 12C (for Hong Hoa urban area), and the Ho Chi Minh Road (for Hoa Tien urban area). They organize the road network in a fishbone pattern combined with an organic form in housing clusters. For the central areas of communes (Dan Hoa, Trong Hoa, Hoa Thanh, Hoa Phuc), they organize the road network in accordance with the characteristics of each area.
• Rural transportation: Linked to the new rural transportation program of the communes and district. Priority is given to investing in the construction and improvement of existing inter-communal roads in the initial phase until 2015. The rate of road pavement reaches 70% of the existing internal road network, with a focus on central areas.

Power system:

• Utilizes the 110/35/6LV-2×25 MVA power station in Song Gianh.
• From 2016 to 2020, a new 110KV Minh Hoa power station with 110/22KV-25MVA capacity will be constructed.
• Upgrade the capacity of the Quy Dat intermediate power station from 35/22KV-3200 KVA to 35/22KV-2x3200KVA.

Water system:

• Apart from centralized water supply systems in urban areas, rural residential areas construct decentralized water supply systems with small-scale capacity, using sources such as springs or well pumping according to the overall plan for clean water supply and rural environmental sanitation. For areas with shallow water tables, drilled wells can be constructed.
• Water consumption standards: 120L/person/day for urban areas, non-customs areas, and 80L/person/day for areas outside urban areas and industrial zones, with an industrial zone standard of 20m3/ha.

Investment Situation in Cha Lo Border Gate Economic Zone – Quang Binh:

Customs clearance at border gate:

• Agricultural products, timber, gypsum, coal briquettes
• Consumer goods, textiles, plastics.
• Electronics, and construction materials.

The function of Cha Lo Border Gate Economic Zone – Quang Binh:

Free trade zone (approximately 300ha in scale):

The free trade zone is located adjacent to the Cha Lo border gate, serving as the gateway to the economic zone and prioritized for the development of commercial and service activities at the border. It accommodates commercial and service functions, as well as logistics for import and export activities. The industrial trade zone (tax-free) is closely linked to the main border gate.

Urban and rural residential areas:

The total area of urban and concentrated residential land within the economic zone is approximately 2,060.05ha, including two urban areas in the Dân Hóa and Hóa Tiến – Hóa Thanh communes. Specifically:

Cha Lo – Bãi Dinh urban area (Type V urban area): spanning from Bãi Dinh to the central area of Dân Hóa commune known as Y Leng. The concentrated construction area is around 172.59ha with a population of approximately 2,000-2,500 people. They develop it as a service-industrial center, utilizing existing infrastructure in Bãi Dinh and Dân Hóa commune. They eco-friendly transform and upgrade the Y Leng center, closely connecting it to surrounding mountains and greenery.
Hóa Tiến urban area: located along the Hồ Chí Minh highway, mainly within the Hóa Tiến commune and partially in the Hóa Thanh commune. The constructed area is approximately 1,587.46ha with a population of around 23,000-25,000 people. This is the largest urban development area within the economic zone, serving as a logistics and service center to facilitate commercial and service activities. It possesses attractive infrastructure and equivalent technical standards of a Type V urban area.

Industrial-service clusters:

The service-trade zone is situated in the Dân Hóa commune, along National Highway 12A, covering an area of 3.6ha.
The Bãi Dinh industrial-service-trade cluster spans approximately 67ha. It serves as a comprehensive cluster for various sectors, including assembly and processing of agricultural, forestry, and aquatic products. It also caters to consumer goods such as textiles, footwear, and electronics, as well as high-quality electrical appliances and packaging. The cluster strictly adheres to environmentally-friendly project guidelines to control pollution.

The main industrial cluster at Khe Ve spans 75ha and processes agriculture, forestry, consumer goods, textiles, plastics, leather, and electronics. The service-trade zone, covering 60.2ha, operates separately. In Hóa Tiến, the northern industrial cluster covers 50ha and specializes in automotive repair, assembly, packaging, and consumer goods. It strictly limits environmentally-polluting industries.

The Hóa Tiến small-scale handicraft-industrial cluster spans 20ha, and there is a limestone exploitation area covering 15ha.

Agricultural and forestry development and contingency area:

The economic zone designates this area for decentralized agricultural and forestry production. The total area reaches 10,000ha, with 3,530ha allocated for farm construction and 6,470ha designated for the development of industrial crops.

Natural landscape conservation and management area:

The natural landscape conservation and management area includes border belt regions and the watershed protection area of the Gianh River in Dân Hóa, Trọng Hóa, and Hóa Thanh. The total area of the entire zone is approximately 40,000ha.

Trade and service activities:

• 2012: $447 million
• 2013: $1.6 billion
• 2020: $1.8 billion
• 2021: $2 billion

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