Hon La Economic Zone - Quang Tri

Hon La Economic Zone – Quang Tri

I.Overview of Hon La Economic Zone – Quang Tri

• The Hon La Economic Zone in Quang Tri, Vietnam, was established by governmental decision 79/2008/QD-TTg. Covering 10,000 hectares, the zone includes six coastal communes in Quang Trach district.
• Specifically, the area comprises 8,900 hectares of land and 1,100 hectares of island and sea space. It follows the comprehensive economic zone model and is divided into two functional zones.
• Firstly, the duty-free area covers 200 hectares. It promotes activities like local production, export goods, service trading, transhipment, warehouse storage, telecommunications, finance, banking, transportation, insurance, entertainment, trade promotion and other commercial activities.
• On the other hand, the customs area spans 9,800 hectares. This sector includes industrial development areas featuring industries such as thermal power, shipbuilding, mineral processing, steel rolling, building materials, oil refining and other supporting industries. Additionally, it contains port and logistics services with the capacity to accommodate ships up to 100,000 tons. The Hon La port is projected to become a significant regional transshipment port. Tourism services, residential areas, urban areas, administrative areas are also part of this sector.
• Presently, the economic zone is expanding a deep-water port capable of handling 10-12 million tons per year and servicing 10,000-ton ships. It also features a 1200 MW coal-fired power plant, a cement production factory with an annual capacity of 4 million tons, and a shipyard.

II. Geography of Hon La Economic Zone – Quang Tri

• The Hon La Economic Zone, part of Central Vietnam’s coastal economic clusters, nestles within six communes of Quang Trach district. Naturally endowed, it’s an ideal spot for deep-water port construction and associated services development.
• It neighbors Ha Tinh province to the north and Quang Tho ward, Ba Don town to the south. The west border touches several Quang Trach communes and Quang Long ward, while the East Sea lies east.
• Hon La Economic Zone’s rare advantages make it a prime investment location. Adjacent to Vung Ang Economic Zone in Ha Tinh, it’s one of five coastal economic zones selected for concentrated investment by the government. It’s poised to become a hub for steel manufacturing, supporting industries, thermal power, and deep-water seaports in Central Vietnam and the nation.
• Only slightly over 10 kilometers from Vung Ang, Hon La will support and connect Vung Ang with Laos via the Cha Lo international border gate.
• Furthermore, its linkage to the Cha Lo International Border Gate Economic Zone provides the shortest international transit route between Vietnam and Laos, Myanmar, Thailand. This east-west economic corridor from Cha Lo to Hon La creates a swift gateway to regional and global destinations. It’s the shortest route for Laos and northeast Thailand provinces to the sea, a mere 150 km from Hon La to Cha Lo and about 300 km to northeastern Thai provinces.

III. Development orientation of Hon La Economic Zone – Quang Tri

1. Industrial development:

Industrial development is a priority, capitalizing on Hon La Economic Zone’s strengths. Key sectors include marine exploitation and port-related industries, power production, supporting industries, export-oriented and high-tech industries. The goal is to create high-impact, competitive industrial products for regional and international integration, laying the groundwork for long-term growth.

The focus remains on developing the Hon La Seaport Industrial Zone into a thermal power and shipbuilding hub with various industrial clusters. Economic development is harmonized with environmental protection.

By 2020, the emphasis is on the following industries:

• Shipbuilding and repair, with a focus on offshore fishing vessels (400-1000 HP);
• Power production (thermal power);
• Construction materials, cement, stone processing, asphalt concrete, high-end construction materials, precast concrete, tuynen bricks, steel and steel products;
• Heavy equipment manufacturing: auto processing and assembly, motorcycle assembly, office equipment, electrical appliances, high-quality electronics, internal combustion engines;
• Product manufacturing, processing, and packaging;
• Biotechnology and new materials production and processing;
• Precision mechanical equipment production and assembly, digital equipment assembly;
• High-end plastic products, detergents, cosmetics, different types of glass, glass processing, packaging, product labeling, paper and paper products;
• Seafood and agricultural processing (wood products);
• Small-scale industry development;
• Petroleum refining (when feasible).

2. Service industry development and establishing a duty-free zone: