Portrait of “giants” pouring money into Bac Van Phong special administrative - economic zone
By Song Ngu
August 22, 2017 | 06:34 AM GMT+7
Numerous local and global big names are standing behind the veil of Bac Van Phong (Northern Van Phong) special administrative - economic zone with billion-dollar projects.
Van Phong Bay, Khanh Hoa, Vietnam (Photo: Internet)
According to the report of the Management Unit of Van Phong Economic Zone, so far, 145 investment projects have been attracted with the total registered capital of US$1.47 billion and the implemented capital is nearly US$630 million, which reach 42% of the registered capital.
Besides, the Management Unit is also implementing the investment procedures for a number of large-scale projects with the total capital of US$6.8 billion.
On August 14th, Prime Minister Nguyen Xuan Phuc agreed to allow Khanh Hoa province to build Bac Van Phong area into a special administrative-economic zone.
Bac Van Phong Special Administrative - Economic Area is planned in Van Ninh district with a total area of about 66,000 ha. An area of 19,000 ha is land - islands and the remaining 47,000 ha is water.
The special zone is expected to become a major service - tourism centre, which creates the driving force for economic development of the province as well as the South Central region and the Central Highlands.
Bac Van Phong Special Zone will prioritize the development of four sectors: seaport and logistics service industries; international financial services; luxury resorts with casino, world-class entertainment complexes; hi-tech science.
Sumitomo (Japan) pours US$2 billion into Van Phong 1 Thermal Power Plant
On May 25th, 2017, the Ministry of Industry and Trade and Sumitomo Corporation signed an agreement on the investment of Van Phong 1 Thermal Power Plant project. The project has a total registered capital of US$2 billion and a capacity scale of 1,320 MW. The project is scheduled to start in the first quarter of 2018.
Sumitomo Corporation (Japan) had proposed to invest in this project in 2006. Three years later, Prime Minister allowed the investor to invest with the BOT scheme.
However, the owner said that they had difficulty in negotiating the BOT contract, so the project has delayed to this year.
Sumitomo Corporation is one of the largest trading and investment groups in Japan with a history of nearly a century.
Entering Vietnam in 1955, Sumitomo Corporation has invested and participated in various prominent projects (Thang Long I Industrial Park – Hanoi, Thang Long II Industrial Park – Hung Yen,...)
Sumitomo has signed an agreement with BRG Group to develop the US$4 billion smart city of Nhat Tan - Noi Bai during the official visit of Prime Minister Nguyen Xuan Phuc to Japan in early June.
A joint venture between Petrolimex and Nippon Oil & Energy on Nam Van Phong Oil Refinery
At the end of 2014, Nippon Oil & Energy and Petrolimex signed a strategic agreement, paving the way for the Japanese partner to invest in the Nam Van Phong (Southern Van Phong) Oil Refinery project and the petroleum retail market in Vietnam. The investor also said that the potential of consumption and the open-door policies on foreign investment in Vietnam attracted their interest.
At that time, Petrolimex and Nippon Oil & Energy planned to complete the issuance of capital increase and set up a joint venture to invest in Nam Van Phong Oil Refinery project to promote investment procedures in the middle of 2015.
In 2016, Nippon Oil & Energy, very enthusiastic about this project, agreed to buy a 8% stake of Petrolimex. The value of the deal was estimated at JPY20 billion (equivalent to US$18 million at that time).
JX Nippon Oil & Energy was founded in 2010, based in Tokyo (Japan). With the purchase of shares in Petrolimex, Nippon Oil & Energy has been involved in the Nam Van Phong Oil Refinery Project, which is invested by Petrolimex. However, Nippon Oil & Energy is also the main shareholder of this project.
It is not yet possible to confirm the kick-off day of the Nam Van Phong Refinery Project.
Van Phong Petroleum Bonded Warehouse
Van Phong Petroleum Bonded Warehouse has been operated since June 6th, 2010. It has the total investment capital of US$125 million with the total capacity of 505,000 m3.
From the beginning of 2014, apart from the Vietnam National Petroleum Group (Petrolimex), a traditional partner of Van Phong Petroleum Bonded Warehouse, two foreign traders Luckoil (Singapore) and Petrolimex Singapore have signed contracts and keep the goods from abroad in the warehouse.
Currently, the charter capital of Van Phong Bonded Petroleum Terminal Joint Venture Company Limited is VND674.1 billion (roughly US$29.7 million), of which the share of Petrolimex is 54.3%.
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