Chu Lai Open Economic Zone

Chu Lai Open Economic Zone:

Chu Lai Open Economic Zone

On July 10, 1999, the Politburo issued Announcement 232-TB/TW, selecting the Chu Lai – Quang Nam area for Vietnam’s first open economic zone. This decision was reaffirmed in Announcement 79-TB/TW on September 27, 2002. To implement the Politburo’s direction, the Prime Minister issued Decision 108/2003/QD-TTg on June 5, 2003, establishing the Chu Lai Open Economic Zone in Quang Nam Province, officially introducing the first coastal economic zone model in Vietnam. After over 15 years of establishment and development, today, the Chu Lai Economic Zone has become a significant development center in the key economic region of Central Vietnam, attracting numerous domestic and foreign investors.

Features:

The Chu Lai Economic Zone spans a natural area of 27,040 hectares, encompassing 16 communes, wards, and coastal towns of Nui Thanh district and Tam Ky city. The zone includes:

• A duty-free sub-zone (or free port) linked with Ky Ha port that comprises activities such as: producing exports and local-serving goods (including processing, crafting); commodity trade (including export, import, transit, re-export, distribution, retail supermarkets); service trade (sorting, packing, transit goods transportation, storage, postal warehousing, telecommunications, finance, banking, transport, insurance, recreation, restaurants); trade promotion (product introduction, trade fairs and exhibitions; establishing branches and representative offices of domestic and foreign companies, including financial organizations, banks) and other commercial activities.
• A customs zone consists of: industrial parks, export processing zones, special entertainment areas, service areas, residential and administrative areas.

Characteristics:

• A multi-sector, multi-field marine economic zone, acting as a nucleus and a significant development center in the central key economic region.
• An urban development area, the center for automobile and auxiliary automotive industries, aviation, mechanics – electricity and petroleum products; textile industry and auxiliary textile industry, other high-tech and high gray matter content industries; the center for organic agriculture, high-tech agriculture and is a service tourism center associated with the exploitation of Chu Lai airport and Chu Lai – Ky Ha port system.
• An essential transportation and trade hub, and a vital international exchange point for the Central and Central Highlands regions; a gateway to the East Sea of the Central Highlands, Southern Laos, Northeastern Cambodia, and Thailand.
• A zone of significant importance in terms of security and national defense.

Geography location –  Infrastructure of Chu Lai Open Economic Zone:

Advantageous Geographic Location:

Chu Lai Economic Zone is centrally located in Vietnam and ASEAN, about an hour’s flight from Hanoi and Ho Chi Minh City. Within a 3,000 km radius lie dynamic East Asian economic hubs like Singapore, Hong Kong, Shanghai, Shenzhen, South Korea, and Japan. Furthermore, within a 4-hour flight, you can reach the 12 largest airports in the Asia-Pacific region. This favorable geographic position facilitates Chu Lai Economic Zone’s connection with other localities in Vietnam and regions worldwide.

Infrastructure of Chu Lai Economic Zone:

Comprehensive Transport Infrastructure:

Chu Lai Economic Zone boasts a well-connected transportation network that includes road, rail, air, and sea routes linked with national and international transit corridors. It also has comprehensive infrastructure for electricity, water, telecommunications, and environmental management to meet all investor requirements.

Roads:

Chu Lai Economic Zone is on the country’s main transport corridor with National Highway 1A, North-South railway, Da Nang – Hoi An – Chu Lai coastal road, Da Nang – Quang Ngai highway, and routes belonging to the East-West economic corridor, ensuring smooth domestic and regional transportation.

Seaports:

These include Ky Ha port, which is close to the North-South international shipping line and about 4 km from buoy number 0, making it highly convenient for domestic and international cargo transportation. Chu Lai port has a capacity of 4 million tons/year, a 500m-long wharf, and can accommodate three 30,000-ton ships at the same time. Besides domestic routes, the port also serves international routes to and from China, South Korea, and Japan.

Airways:

Chu Lai airport, part of the Chu Lai Economic Zone, is the largest airport in Vietnam, with routes to Hanoi and Ho Chi Minh City. The airport is being invested and planned to be a 4F and I military airport by 2030, with a capacity of 5 million passengers/year and 1.5 million tons of goods/year.

Abundant Human Resources:

The labor force in Chu Lai mainly consists of local workers. With a population of over 1.8 million people, over 50% of whom are of working age, Quang Nam province, and particularly Chu Lai, ensures an ample labor supply for investors.

Quang Nam’s vocational training system includes 2 universities, 7 colleges, 4 secondary schools, and 9 vocational education centers. Moreover, Chu Lai Economic Zone is conveniently located near major training centers in central regions such as Da Nang, Hue, and Quy Nhon, providing high-quality human resources.

The large population, coupled with an effective labor training mechanism such as training support, assistance with premises for businesses to set up training bases, and partnerships between training facilities and businesses, ensures the supply of labor in both quantity and quality to meet investors’ requirements.

Investment Policy in Chu Lai Open Economic Zone

1. Import and export tax incentives

2. Corporate income tax incentives

3. Land rental incentives