Chan May – Lang Co Economic Zone
  

Chan May – Lang Co economic zone is located at the middle of Hue city and Danang city, the two centers for economy and culture and parts of key economic zone in Central Vietnam. Chan May – Lang Co economic zone is the only area situated in two large cities. Chan May is the nearest port leading to the East sea and East-west economic corridor.

Chan May – Lang Co economic zone is the center of “Central heritage road”. Within 200km, visitors may access to the four world heritages in Vietnam including Phong Nha – Ke Bang, Hue ancient capital, Hoi An ancient street and My Son Sanctuary as well as thousands of historic cultural relics and ancient architectures. Lang Co bay was elected as one of the 30 most beautiful bays in the world. Lang Co and other beaches in Danang, Hoi An creates a chain of breath-taking beaches in Central Vietnam, a paradise for domestic and foreign visitors.

Natural area

27.108 ha including Lang Co town and some communes of Phu Loc district, Thua Thien Hue province

Topography

•     Variety of topography: sea, seaside, lagoon, plain, hill and mountain

•      Flat plain with average height of 2-10m, made of fine sand suitable for industry construction

•      Chan May bay has total area of 20 km2. The depth is from 6 to 14 m. Forty percent of the bay is more than 10m deep.

Climate

It is located in tropical monsoon climate. It is warm in the spring, hot in the summer, cool in the autumn and cold in the winter. The average temperature around is 25,20C. The number of sunny hour is 2000 hour. The best time for tourism is from November to April.

Functional areas:

Industrial areal:                         1.915 ha.

Duty-free area:                          1.080 ha

Urban area 2.096 ha.

Tourism area....................................................................4.250 ha.

Chan May port......................................................................668,5 ha

Industrial zone:

Area: 1.915 ha

Location: near non-tariff area along national road 1A leading to Chan May port.

Fields calling for investment: High-tech industry; clean industry such as software, new materials precision engineering, assembling electrical devices, automobile and motorcycle; health devices, pharmaceutical products; textile and footwear plastic productions; industries serving port and marine transportation; processing agricultural, forestry and seafood for exportation.

Non-tarrif area:

Area: 1.080 ha

Non-tarrif area plays important role in importation, exportation and international bond. It is connected with a part of Chan May port via the road leading to Chan May port and coastal road.

Fields calling for investment: high-tech zone, clean industrial zone, commercial center, trading offices, representative offices, branches; areas for production, processing, recycling, assembling and fixing, product introduction, exhibits and services, cargo transshipment and bonded warehouse, etc.

Chan May urban area

- Total area: 2.096 ha.

- Population living in the planned area of Chan May urban area till 2025: 140.000 people

Characteristics:

- Located in new urban area in the “dynamic urban chain” of Hue – Chan May – Da Nang – Dung Quat – Nhon Hoi, 1A national road corridor. It serves as an industrial, commercial, service and tourism port which has a close connection with the Central Highland and adjacent countries like Laos, Cambodia and Thailand. Its basic functions are:

+ A large and modern international trading center

+ An urban port, cargo coordination spot of the Central Vietnam key economic region

+ A tourist spot of national and international stature

+ An urban area with clean and high-tech industry.

Tourist area

Lang Co - Canh Duong - Cu Du is a large tourism area country wide and included in the general planning of national tourism development. It has great potential for being a tourism site of international stature. The area meets requirements for various kinds of tourism such as sea resort, ecological tourism in lagoon area, mountain climbing, Golf, sea diving, tropical forest advanture, etc.

Lang Co - Canh Duong - Cu Du tourism area covers the area of about 4.250 ha. Typical projects being carried out in the area are Laguna, Vicoland, Minh Vien, etc.

Chan May port:

Location: 16020’00”N; 108000’00”E

Tidal regime: Irregular semi-diurnal tide

Average tidal difference: 0.8 m

Elevation: -12.5 m

Chan May Port is a container general port which has a specialized quay for international tourists. It is capable of receiving 30.000-50.000 DWT cargo ships, 10.000 GRT cruises. The port serves as an important sea transport junction which provides services of deep - water seaport and coordinates freight in the central key economic region. It also leads to the East Sea, east-west economic corridor and Greater Mekong Sub region (GMS).

As an important sea transport junction, it provides services of deep - water seaport and coordinates freight in the central key economic region.

Port city which links to the whole of Chan May - Lang Co urban zone and region, Chan May Port has functions of service, tourism, education, international convention center, entertainment and sport.

Till 2030, the port is expected to cover the area of 668,5ha including 442ha of continent and 226,5ha of water surface.

By 2030, Chan may Port will have had eight (08) general berths with total length of 2,280 meters, one gasoline and oil specialized berth with the length of 240 meters, and one terminal for 100,000 Gross Tonnage (GRT) cruise. It is estimated that the commodity through the port may reach 10 million tons, and the number of passengers may reach 550,000 in which domestic passengers is 300,000, and international passengers is 250,000. 

Comparative investment expense in Chan May – Lang Co economic zone

Currently, the investment-related expense in this area is lower than other localities across Vietnam and over the world. The expense on labor, workshop and land leasing equals to 80% of that in Danang city, 70% in Hanoi city, 60% in Ho Chi Minh city, 30% in Shang Hai and 25% in Bangkok. The time needed for compensation and site clearance is around 6-9 months. Local government is in charge of compensating, clearing and handing over land to investors.

No

Detail description

1

Time

No more than 70 years

2

Technical infrastructure

2.1. Power supply: Power provided from 500/220/110KV Danang station. At the moment, there are 03 110/22kV substations available with the capacity of 75 MVA and distribution network. Sufficient power is offered to Chan May – Lang Co economic zone for producing and living purpose.

2.2. Water supply and drainage system: Bo Ghe Water Plant with the capacity of 8.000m3/day. D100-450 water supply pipe which is 20km long is connected with functional areas in the economic zones and offers water for production, business and daily use.

In coming stage, Loc Thuy Water Plant whose capacity is 110.000m3.day will be invested.

2.3. Sewage and waste treatment system: Lang Co sewage treatment plant with the capacity of 5.000m3/day, solid waste treatment plant covering the area of 30ha is situated to the east of Phuoc Tuong pass. Sewage treatment plant No.2 with the capacity of 4.900m3/day is capable of proving sewage treatment service for the industrial zone and non-tariff area.

2.4. Telecommunication and Internet system: modern telecommunication and Internet system available.

2.5. Fire prevention system:

2.6. Internal transport: Already completed main transport according to the general planning and detail planning. Over 100km of road completed connect national road 1A and surrounding area via Chan May port.

2.7. Transport

+ Land and railway: near national road 1A, north-south railway.

+ Waterway (sea, river): Chan May sea port

+ Air way: 45km from Phu Bai International Airport and 35km from Danang Airport

2.8. Infrastructure investment

Technical infrastructure: Modern technical infrastructure has already been comprehensively planned and completed.

Social infrastructure: Facilities such as hospital, residence relocation areas, hotel, bank, post office, market and supermarket have already been constructed. They are able to meet the demand of workers and investors.

3

Labor resource

Local labor:

- Population: 40.000 people. There are 27.000 people at the working age, which accounts for 65% of the population.

Adjacent areas:

- Within 20km: There are 80.000 people at the working age living at 16 communes.

- Within 30km: There are 120.000 people at the working age living at 25 communes.

- Chan May – Lang Co Economic zone is located between two centers for human resource training in Central Vietnam i.e Hue city and Danang city. There are over 2 million people including 1,1-1,3 people at working age.

4

Social infrastructure

4.1. Institutions: there are 09 universities, 01 academy, 06 colleges, 07 professional secondary schools and many other vocational training establishments.

The economic zone is calling for investment in Chan May Technical Worker School, 500 students/year.

4.2. Security: Police stations located in accordance with commune-level administrative unit.

4.3. Hospital: Chan May General Hospital (300 beds) located to the west of the Bu Lu river, Loc Thuy commune

4.4. Worker accommodation: Investors are entitled to incentives for constructing worker accommodation.

4.5. Other Social infrastructure

- Residential area: Four residential areas (Loc Vinh, Loc Tien, Lap An and Loc Thuy) have already been completed with the total area of 120ha. These residential areas are able to house 2.600 people.

- Rural market: already been invested at administrative units.

5

Supporting services

5.1. Logistic and transport: transport and logistic services meeting investors’ demand.

5.2. Finance - banking - insurance: the branches of big banks can be found near the industrial zones, like Vietcombank, Vietinbank, BIDV, Agribank, Sacombank, etc.

5.3. Consultancy - auditing: Large companies providing auditing services such as KPMG, Deloite, Ernt & Young, Global auditing… have already effectively operated in the province.

5.4. Customs: Chan May Port Customs Station and Cang Vu (near Chan May Port)

5.5. Tourism – transport – accommodation (hotel, restaurant): the system of hotel and restaurants are comprehensively invested, meeting accommodation demand.

6

Fields calling for investment

Clean industries, high-tech industry, environmental friendly industry, auxiliary industry projects on textile, electronics, health and automobile production, etc.

Industrial zone: Currently, there are 4 investors who cover the area of 15 ha. The occupancy rate is about 4,4%.

+ An Long Food Joint Stock Company

+ Chan May Viet Nam Mechanical Engineering Company Limited

+ One – One Joint Stock Company

+ Shaiyo Aa Vietnam Company Limited

7

Land leasing fee, workshop leasing fee and infrastructure use expense

7.1. Land leasing fee

- Infrastructure included: USD 22 – 30/43 years (applied to Sai Gon Chan May industrial zone).

- Raw land: USD 0.02-0.2 USD/m2/year (based on functional area)

7.2. Method of payment: cash or account transferring

7.3. Infrastructure use fee: USD 0,4/m2/ year

7.4. Method of payment: cash or account transferring.

8

Construction price

8.1. Standard workshop: Referred to Decision 1161/QD-BXD of Construction Ministry on regulating the investment unit cost and construction unit cost of structural assmblies.

8.2. Office: Decision 1161/QD-BXD of Construction Ministry on regulating the investment unit cost and construction unit cost of structural assemblies in 2014.

9

Investment fee (reference)

9.1. Electricity price: Yearly regulated by Commerce and Industry Ministry

9.2. Water price (VAT, environmental protection, forest service excluded):

- Production: VND 11.081/m3

- Business –service: VND 15.610/m3

9.3. Gas and coal price:

- Gas:12 – 16 USD/12kg.

- Coal:100 – 120 USD/ton.

9.4. House/apartment leasing fee for foreigner: 500 – 700 USD/month. (Two and three star hotel in the industrial zone area)

9.5. Labor:

+ Minimum salary: VND 3,090 million/month

+ Primary labor: 4,5 - 5,5 million dong/month

+ Technician laborers: 6 - 8 million dong/month

+ Managers: 8 - 12 million dong/month

+ Over time salary as regulated

+ Social insurance: 25% (17% is charged by employer, the rest is paid by employees)

+ Health insurance: 4,5% (employer: 3%, employees: 1,5%)

+ Unemployment insurance: 2% (employer: 1%, employees: 1%)

9.6. Sewage treatment: under construction

9.7. Environmental protection fee: 2 USD/ton.

9.8. Customs services: as regulated

9.9. Other expense: Site flattening: 4.0 - 5.0 USD/m3(at the construction site).

Notes: In case of various prices available, the average price in the area or entire province/city is used.

(Source: Hue Investment Promotion Center)

www.thuathienhue.gov.vn
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