In 1997, Quang Nam was one of the poorest provinces in the country, with 60% of the annual budget depending on central government assistance. From being a purely agricultural province with no large-scale industrial plants, Quang Nam has focused on restructuring its economy. The establishment of the Chu Lai Open Economic Zone – the country’s first open economic zone, with the core being the Chu Lai-Truong Hai automobile mechanical industrial zone – was a turning point for Quang Nam’s economic takeoff.
In difficult times, Quang Nam has always been resourceful, building a favorable environment, welcoming investors with an open and supportive attitude. For many years, the Chu Lai Open Economic Zone has contributed more than 70% of the industrial production value and provincial budget. After announcing the provincial planning period 2021-2030 and vision to 2050, Quang Nam continues to “open its doors” to new investors.
THACO’s shipments from Chu Lai Port are exported to other countries.
“Holding hands” since the early days of adversity
“Being a business that is tied to the development of a locality, a region, and many sectors and industries that are crucial to the whole country is something that makes me very happy. This motivates us to continue to participate and accompany Quang Nam in realizing its development plan.”
Mr. Tran Ba Duong, Chairman of the Board of THACO, recalls the 21-year journey of THACO in Quang Nam with the emotions, responsibilities, and dedication of a business that has experienced many ups and downs in this land over the past two decades. Mr. Tran Ba Duong says it was fate for a very small business to be invited by the Quang Nam province to invest here in 2003. At that time, Mr. Tran Ba Duong was 43 years old. He recalls that the leaders of Quang Nam province went to Ho Chi Minh City, both to invite and encourage him to invest in Quang Nam.
Mr. Tran Ba Duong, Chairman of the Board of THACO.
According to Mr. Tran Ba Duong, at that time, Chu Lai Open Economic Zone was a project that contained the hope of poverty eradication for Quang Nam rather than a reality. 21 years ago, Chu Lai, Nui Thanh District, Quang Nam Province was a stretch of white sand with wild dunes, sweet potato fields, and cassava farms. Living in the sandy region, the livelihood of the people here was extremely difficult and poor. They had only two choices: stick to farming or leave their homeland to make a living elsewhere.
Chu Lai Open Economic Zone was the country’s first coastal economic zone, established on June 5, 2003, by the decision of the Prime Minister. This is one of the eight key national economic zones with a comprehensive economic zone model, applying new policy mechanisms, creating a favorable investment environment, suitable according to international conventions. THACO was the first business to invest in the Chu Lai Open Economic Zone. At that time, Quang Nam was a purely agricultural province, with an annual budget depending on central government assistance.
Exports through Chu Lai Port.
From the white sandy region, Quang Nam has realized the desire to turn Chu Lai Open Economic Zone into an engine of growth. In that area, a national brand named THACO has been formed. Cars produced in Chu Lai – Truong Hai have reached markets both domestically and internationally, creating an economic image and position for Quang Nam; establishing a national brand in Quang Nam land. In the first 21 years of investment and development, THACO is now a “bald eagle” nesting in Quang Nam, considered the largest Automobile and Logistics Industry Center in the country and ranks at the top in the ASEAN region.
Recalling the difficult early days of investing in the construction of automobile production and assembly center in Chu Lai Economic Zone, Mr. Tran Ba Duong, Chairman of the Board of THACO, said that in addition to the advantages of a large area and abundant labor force, the outstanding policy mechanisms and the accompanying role of the local government are the reasons why THACO decided to invest in and stay long-term in Quang Nam province. On that journey, THACO played an important role in the success of Chu Lai Open Economic Zone and positioning the role of Quang Nam’s economy and society in the key economic region of Central Vietnam. This corporation continues to be the flagship on the path to Quang Nam province’s future.
Deputy Prime Minister Tran Luu Quang, former State President Nguyen Xuan Phuc, and leaders of Quang Nam province visited the production workshop of the Mechanical Center – THACO Industries.
Mr. Tran Ba Duong believes that the Quang Nam provincial planning period 2021-2030 and vision to 2050 has set a feasible goal to form a logistics center, especially with the early investment and completion of the Cua Lo road in Nui Thanh district. At that time, large cargo ships will easily dock, solving the logistics cost.
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. “The planning stated that by 2030, a multi-purpose mechanical and national automobile center will be formed, developing industries related to information technology, telecommunications, electronics; deep processing industry of silica products; processing of medicinal ingredients and agricultural products for export… But we are determined to establish this center by 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,” he said.
Chu Lai Port.
The Quang Nam provincial planning for the period from 2021 to 2030 sets the goal of developing a circular and specialized economy with high automation. The province focuses on developing manufacturing industries, automobile assembly, mechanical products, electricity, and electronics; forming a multi-purpose mechanical center and national automobile… These orientations coincide with THACO’s development strategy and THACO becomes the pillar enterprise to implement the directions according to the Quang Nam provincial planning for the period from 2021 to 2030 and vision to 2050.
Strong infrastructure and soft mechanisms
In 2006, many large domestic and foreign investors came to the East Quang Nam region to survey and choose investment locations. At that time, this area was a barren sandy region with countless graves. Along the coastal communes of Thang Binh and Duy Xuyen districts, the wind blew fiercely, and the land was desolate. The local people mainly engaged in farming and lived in poverty. Mr. Don Lam, Member of the Board of Directors of Nam Hoi An Development Co., Ltd., the investor of Hoiana Resort, recalls that he and the company’s leaders and the leaders of Quang Nam province sat on a boat to survey the field along the Thu Bon River, the border between Hoi An City and Duy Xuyen district. Few could imagine that in less than 10 years, this deserted and poor land would become a “golden land” with strong attraction for domestic and foreign investors as it is today.
THACO’s workshops with modern machinery and equipment.
The construction of Cua Dai Bridge across the Thu Bon River started in August 2009 and opened to traffic in March 2016, connecting 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, and has been invested in to connect tourist areas, economic zones with the airport and seaport. Convenient transportation helps Quang Nam province tap into the advantages and potential of vast land in the East. Here, more than 160 projects have been attracted with a total investment capital of over $4.5 billion. This shows the strategic vision of Quang Nam province in transport infrastructure planning and economic-social development strategy.
Mr. Don Lam said that the Hoiana Resort project started in 2016 and is considered one of the “breakthroughs on the sand” of Quang Nam province. Up to now, Hoiana Resort has completed phase 1 with a total investment capital of about $1.2 billion. This resort with 3 hotels including 1,200 luxury rooms, 1 18-hole golf course by the sea, and a high-quality entertainment area comparable to the world. Although the tourism industry has faced many difficulties after the Covid-19 pandemic, Hoiana has contributed more than VND 1,000 billion to Quang Nam’s budget in the past 2 years, creating jobs for nearly 3,000 workers.
Leaders of Quang Nam province awarded 1 Decision on investment, 13 Certificates of investment registration, and 2 Agreements on researching investment locations with a total registered capital of about VND 20,000 billion.
Many investors believe that although transportation infrastructure in East Quang Nam has been extensively invested, additional soft mechanisms and new policies are still needed to attract investors here.
Mr. Don Lam, Member of the Board of Directors of Nam Hoi An Development Co., Ltd., suggests: “As a foreign investor, we hope to receive the companion and support from the local government as well as the central government in quickly resolving legal issues related to planning, land clearance, and resettlement. We commit to investing an additional $1 billion in phase 2 of Hoiana Resort project.”
At the Quang Nam Provincial Planning Announcement ceremony for the period 2021-2030 and vision to 2050, which took place on March 16, the Provincial People’s Committee awarded investment / investment registration certificates / investment location research agreements to investors of 16 outstanding projects with a total investment capital of more than VND 20,000 billion, opening up a wave of new investment in Quang Nam after many years of stagnation.
Quang Nam province will focus on completing the infrastructure of industrial zones.
Mr. Le Hung Anh, Chairman of BIN Corporation, is the youngest investor, born and raised in his hometown of Quang Nam. On this occasion, the BIN Corporation was granted an agreement to study the investment location of the Nam Thang Binh Industrial Zone in Thang Binh district, Quang Nam province. In phase 1, the project scale covers an area of 325 hectares, with a total expected investment capital of about VND 7,000 billion. The project’s operating goal is to invest in construction and business of industrial zone infrastructure according to the ecological industrial zone model. This industrial zone is oriented to attract industries related to information technology, telecommunications, electronics; deep processing of silica products; processing of medicinal ingredients and agricultural products for export…
Mr. Le Hung Anh, Chairman of BIN Corporation, believes that the Quang Nam Provincial Planning for the period 2021-2030 and vision to 2050, which is oriented towards green and sustainable development, is in line with the global trend. Quang Nam province possesses vast untapped land potential. The Nam Thang Binh area is planned for development of tourism, services, high-tech agriculture, and high-tech industries. Currently, there is no high-tech industrial park in this area. Therefore, Mr. Le Hung Anh desires that Quang Nam province creates favorable conditions for BIN Corporation to study the investment of Nam Thang Binh Industrial Zone with modern infrastructure conditions that attract many secondary investors from large countries.
Mr. Le Van Dung, Standing Deputy Secretary of Quang Nam Provincial Party Committee (far right) and leaders of BIN Corporation survey the investment location.
Mr. Le Hung Anh expects that in the next 10 years, when the Eco-Industrial Zones and High-Tech Industrial Zones are put into operation, they will attract many large foreign investors to come here. This will help transform the economic structure towards modern industrialization, solve the labor issue, and make a significant contribution to Quang Nam’s budget.
Opening a new development period
After being announced, the Quang Nam Provincial Planning for the period 2021-2030 and vision to 2050 brings many expectations, creating an important foundation for Quang Nam province to become a relatively developed province of the country by 2030. It is an important growth pole of the Central Highlands – Central provinces. By 2050, Quang Nam strives to become a centrally-run city. Mr. Le Tri Thanh, Chairman of the Quang Nam Provincial People’s Committee emphasized that this planning 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, exchanges with foreign investors.
Mr. Le Tri Thanh believes that at present, businesses in Quang Nam province are facing many difficulties, and the province will focus on removing these difficulties for businesses: “With the release of the Quang Nam Provincial Planning for the period 2021-2030 and vision to 2050, together with new efforts and determination, a new vision, the province will undoubtedly help to remove difficulties, while opening up new development opportunities for the business community operating in Quang Nam province and businesses that are about to invest in Quang Nam province.”
According to Deputy Prime Minister Trần Lưu Quang, Quang Nam province is on the verge of opening a new development period based on the values established during the past time. Quang Nam possesses the sea, mountains, forests, the open economic zone, and a comprehensive transportation system from airways, waterways, railways, to roads that connect the region very smoothly. It holds a very important political position and will be a key connecting center in the near future.
The coastal road invested in, built luxuriously, and connecting the East of Quang Nam province smoothly.
Deputy Prime Minister Trần Lưu Quang believes that with determination to overcome difficulties, not accepting hunger and poverty, and the spiritual strength nurtured from this revolutionary land, Quang Nam is an extremely important asset for the development of this land in the near future.
“After the separation, Quang Nam was aware of its weakness, so it took good care and made every effort to create a favorable investment environment and accompany investors. Now Quang Nam is home to the leading businesses in the country, especially in the industrial development sector. This is the basis for trusting in the breakthrough development of Quang Nam in the coming time”. Emphasizing the words of Deputy Prime Minister Trần Lưu Quang.
