When the province was reestablished (in 1997), Quang Nam was one of the poorest provinces in the country, with 60% of its annual budget dependent on central government assistance. From being a purely agricultural province, without any large-scale industrial plants, Quang Nam has focused on restructuring its economy. The establishment of Chu Lai Open Economic Zone – the country’s first open economic zone, with the core being Chu Lai-Truong Hai Mechanical Engineering Industrial Zone-has been a turning point for the economy of Quang Nam.
Despite the difficulties, Quang Nam has always known how to manage its resources, create a favorable environment, and welcome investors with an open heart, accompanying and sharing with businesses. For many years, Chu Lai Open Economic Zone has contributed over 70% of the value of industrial production and the provincial budget. After announcing the Provincial Plan of Quang Nam for the period 2021-2030 and vision to 2050, Quang Nam continues to “open up” and welcome new investors.
From Chu Lai Port, THACO’s shipments are exported to other countries.
“Holding hands” from the early days of hardship
“Being a company that devotes its whole life to the development of a locality, a land, and many industries, the main sector of the whole country, is something I am very happy about. This motivates us to continue to participate, accompany and pursue the development plan of Quang Nam.”
Mr. Tran Ba Duong, Chairman of the Board of Directors of THACO Group, recalls the 21-year journey that THACO has set foot in Quang Nam with the affection, responsibility, and dedication of a company that has gone through ups and downs in this land over the past two decades. Mr. Tran Ba Duong said that it was fate for a very small company to be invited by the leaders of Quang Nam province to invest in 2003. Back then, Mr. Tran Ba Duong was 43 years old. Mr. Duong remembers that the leaders of Quang Nam province went all the way to Ho Chi Minh City, both inviting and encouraging him to invest in Quang Nam.
Mr. Tran Ba Duong, Chairman of the Board of Directors of THACO.
According to Mr. Tran Ba Duong, Chu Lai Open Economic Zone at that time was a project that contained the desire to escape poverty of Quang Nam rather than a realistic one. 21 years ago, Chu Lai, Nui Thanh district, Quang Nam province was a stretch of white sand with casuarina forests, sweet potato fields, and cassava fields… Born in this sandy area, the livelihood of the people here was very difficult and poor. They only had two choices, either to stick with farming or to leave their hometown and make a living in the South.
Chu Lai Open Economic Zone is the country’s first coastal economic zone established by the Prime Minister on June 5, 2003. This is 1 of 8 national key economic zones with a comprehensive economic zone model, applying new policies creating a favorable investment environment and following international customs. THACO was the first enterprise to invest in Chu Lai Open Economic Zone. At that time, Quang Nam was a purely agricultural province, with its annual budget dependent on central government assistance.
Exports through Chu Lai Port.
From the white sand area, Quang Nam has realized its aspiration to turn Chu Lai Open Economic Zone into a driving force for growth. It has now formed a national brand named THACO. The automobiles produced in Chu Lai – Truong Hai have reached markets at home and abroad, establishing the economic position and a national brand in Quang Nam. During the first 21 years of investment and development, THACO is now a “bald eagle” nesting in Quang Nam, considered as the largest industrial and automotive center and leading in the ASEAN region.
Remembering the early difficult days of investing in the construction of automobile production and assembly center in Chu Lai Open Economic Zone, Mr. Tran Ba Duong, Chairman of the Board of Directors of THACO, said that besides the advantages of large land area and abundant labor force, it is the superior policy mechanisms and the accompanying of the local authorities that are the reasons THACO decided to invest and stay in Quang Nam for the long run. And throughout that journey, THACO has made an important contribution to the success of Chu Lai Open Economic Zone and positioning the role of the economy and society of Quang Nam in the key economic region of the Central. This corporation continues to be the flagship on the road to the future of Quang Nam province.
Deputy Prime Minister Tran Luu Quang, former State President Nguyen Xuan Phuc and Quang Nam province leaders visiting the production workshop of Mechanical Engineering Center – THACO Industries.
Mr. Tran Ba Duong believes that the recently announced Provincial Plan of Quang Nam for the period 2021-2030 and vision to 2050 aims to create a logistic center, and it is very feasible, especially when the Cua Lo route in Nui Thanh district is invested and completed early. At that time, large cargo ships will be able to dock easily, thereby reducing logistic costs.
According to Mr. Tran Ba Duong, when this cost is low, investors will come to Quang Nam and create conditions for the development of small businesses. “In the plan, it is stated that by 2030, a versatile mechanical center and a national automobile center will be formed, with the development of supporting industries related to post-services, logistics. But we are determined to establish this center in 2027 according to the 5-year strategy (2022-2027) of the corporation. That means it will be 3 years earlier than the province’s target.”
Chu Lai Port.
The Provincial Plan of Quang Nam for the period 2021-2030 and vision to 2050 determines that Quang Nam will develop industry in the direction of circular economy and high specialization and automation. The province will promote the development of manufacturing industry, automobile assembly, mechanical products, electricity, electronics; form a versatile mechanical center and a national automobile center… These orientations coincide with THACO’s development strategy, and THACO becomes a pillar enterprise to implement the directions according to the Provincial Plan of Quang Nam for the period 2021-2030 and vision to 2050.
Hard infrastructure and soft mechanisms
In 2006, many large investors at home and abroad came to the eastern region of Quang Nam to survey and select investment locations. At that time, this area was a barren land of white sand, with forests of dunes and many tombs. Along the coastal communes of Thang Binh and Duy Xuyen districts throughout the year, strong winds blew with vast desolate land and silver colors. The locals mainly rely on agriculture and have been living in poverty. Mr. Don Lam, a member of the Board of Directors of Nam Hoi An Development Co., Ltd., investor of Hoiana Resort, recalls sitting on a boat with company leaders and leaders of Quang Nam province to survey the actual situation along the Thu Bon River, the bordering section between Hoi An city and Duy Xuyen district. Few could imagine that this sandy and impoverished land would become a “golden land” with a strong appeal to investors at home and abroad within less than 10 years as it is today.
THACO’s workshops with modern machinery and equipment.
Construction of Cua Dai Bridge across the Thu Bon River began in August 2009 and was opened to traffic in March 2016, connecting transportation between Hoi An city and Duy Xuyen district, Quang Nam province. At the same time, the coastal road named Vo Chi Cong was also built and put into use. This road is 69km long from Hoi An city to Chu Lai airport, Nui Thanh district, invested carefully to connect tourist areas, economic zones with the airport and seaport. Convenient transportation helps Quang Nam explore the advantages and potential of its vast eastern land. Over 160 projects have been attracted here, with a total investment of over 4.5 billion USD. This shows the strategic vision of Quang Nam province on transportation infrastructure planning, economic and social development planning.
Mr. Don Lam said that the Hoiana resort project started in 2016 and is considered one of the “breakthroughs on sand” projects of Quang Nam province. Until now, Hoiana Resort has completed phase 1 with a total investment of about 1.2 billion USD. This resort area includes 3 hotels: 1,200 luxury rooms, 1 18-hole seaside golf course, and a high-quality entertainment area with a global scale. Despite the difficulties that the Tourism industry has faced after the Covid-19 pandemic, in the past 2 years, Hoiana has contributed over 1,000 billion VND to the provincial budget and created jobs for nearly 3,000 workers.
Quang Nam Province leaders presented 1 Investment Decision, 13 Investment Registration Certificates, and 2 Memorandums of Investment Research to domestic and foreign investors with a total registered capital of about 20,000 billion VND.
Many investors believe that transportation infrastructure in East Quang Nam has been well invested, but more soft mechanisms and new policies are still needed to attract investors.
Mr. Don Lam, a member of the Board of Directors of Nam Hoi An Development Co., Ltd. – Hoiana Resort recommends: “As a foreign investor, we hope to receive the cooperation and support from the local and central authorities in quickly resolving legal issues regarding planning, land clearance, and resettlement. We are committed to investing an additional 1 billion USD in phase 2 of the Hoiana Resort project.”
During the Provincial Plan of Quang Nam for the period 2021-2030 and vision to 2050, which was announced on March 16, the Quang Nam People’s Committee awarded investment decisions/Certificates of Investment Registration/Agreements on investment research location to 16 typical investment projects with a total investment capital of more than 20,000 billion VND, opening up a new investment wave in Quang Nam after many lean years.
Quang Nam Province will focus on completing the infrastructure of industrial zones.
Mr. Le Hung Anh, Chairman of BIN Corporation, is the youngest investors, born and raised in his homeland Quang Nam. On this occasion, BIN Corporation was awarded the Agreement on Investment Research Location of the Nam Thang Binh Industrial Zone project, in Thang Binh district, Quang Nam province. In Phase 1, the scale of the project with an area of 325 hectares and a total planned investment capital of about 7,000 billion VND. The activities of the project are to invest in constructing and operating infrastructure of the Industrial Zone in the form of an ecological industrial zone. This Industrial Zone is oriented to attract professions related to information technology, post and telecommunications, electronics; deep processing of products from silica; processing of medicinal materials and agricultural products for export…
Mr. Le Hung Anh, Chairman of BIN Corporation, believes that the Provincial Plan of Quang Nam for the period 2021-2030 and vision to 2050, aiming at green and sustainable development, is a suitable direction with global trends. Quang Nam owns a vast and unexploited land potential. The Nam Thang Binh area is planned to develop tourism, services, high-tech agriculture, and high-tech industries. Currently, there is no high-tech industrial park here. Therefore, Mr. Le Hung Anh hopes that Quang Nam province will create conditions for BIN Corporation to research the investment of Nam Thang Binh Industrial Zone with a condition of modern infrastructure to attract many secondary investors from large countries.
Mr. Le Van Dung, Standing Deputy Secretary of the Quang Nam Provincial Party Committee (rightmost) and leaders of BIN Corporation surveying the investment site.
Mr. Le Hung Anh hopes that in more than 10 years, when the Ecological Industrial Zones and High-tech Industrial Zones are put into operation, they will attract many large foreign investors to come. Thereby transforming the economic structure towards industrialization, modernization, solving labor problems, and making a large contribution to the Quang Nam provincial budget.
A new development phase
The Provincial Plan of Quang Nam for the period 2021-2030 and vision to 2050 after being announced brings many expectations and important foundations for Quang Nam province to become a relatively developed province of the whole country by 2030, being an important growth driver of the Central Highlands and Central coastal regions. By 2050, Quang Nam province strives to become a centrally-run city. Mr. Le Tri Thanh, Chairman of the Quang Nam Provincial People’s Committee emphasized that this plan not only serves the development of Quang Nam province but also serves the development of the region and the country.
Mr. Le Tri Thanh, Chairman of the Quang Nam Provincial People’s Committee exchanging with foreign investors.
Mr. Le Tri Thanh believes that currently businesses in Quang Nam province are facing many difficulties, and the province will focus on removing the difficulties of businesses: “With a Provincial Plan of Quang Nam for the period 2021-2030 and vision to 2050 just announced, along with new effort and determination, a new vision, it will certainly help to remove the difficulties and open up new development opportunities for the business community operating in Quang Nam province and businesses planning to invest in Quang Nam province”.
According to Deputy Prime Minister Tran Luu Quang, Quang Nam province is facing an opportunity to embark on a new development phase based on the foundation of the established values over the years. Quang Nam has beaches, mountains, forests, open economic zones, a synchronized infrastructure system from aviation, waterway, railway, to road connecting the region very smoothly and holds a very important political position and will be a connecting center in the near future.
Vo Chi Cong road invested, constructed stately, and connects the East area of Quang Nam province.
Deputy Prime Minister Tran Luu Quang is confident that with the will to overcome difficulties, not accepting hunger and poverty and the spiritual strength nurtured from this land rich in revolutionary tradition are precious assets that Quang Nam has, playing an extremely important role in the development of this land in the near future.
“Quang Nam, in the early years after the division, became aware of its weakness so it took good care of itself, made efforts to create a favorable investment environment, and accompanied with investors. So now in Quang Nam, there are leading companies in the country, especially in the field of industrial development. This is the foundation for us to trust in the breakthrough development of Quang Nam in the coming time”. Deputy Prime Minister Tran Luu Quang emphasized.
