“Lao Leader Visits Vietnam’s Thriving Economic Zone: What Caught Their Eye?”

As part of their working trip to Ha Tinh, on May 27, Mr. Song Lao Yong Nu – Deputy Secretary of the Municipal Party Committee, Head of the Special Working Committee of Vientiane Capital, and Mr. Kham Ven Pan Nha Nu Vong – Vice Governor, Head of the Special Working Committee of Bolikhamxay Province (Lao PDR) and the delegation visited the Vung Ang Economic Zone (EZ).

At the EZ, the Lao delegation visited the Hung Nghiep Formosa Ha Tinh Steel Company. Formosa Ha Tinh has three main items: an integrated steel mill, Son Duong Port, and a thermal power plant with a total area of 3,318 hectares and a total investment of nearly US$12.8 billion.

In reality, Formosa Ha Tinh’s steel production reaches over 6 million tons, serving domestic and export needs and making a significant contribution to the state budget. To date, the company provides stable employment for over 6,500 workers. Additionally, with a focus on circular economics and sustainable development, Formosa Ha Tinh is also committed to planning environmental treatment system upgrades.

The delegation also visited Laos-Vietnam International Port Joint Stock Company, which manages and operates two main ports: Vung Ang Port (including berths 1, 2, and 3) and Xuan Hai Port. Specifically, berth 1 has been in operation since 2001, and berth 2 since 2008. The cargo throughput of the two berths reaches 4 million tons/year, of which transit cargo from Laos accounts for nearly 40% (including products such as potash, iron ore, copper…)

Notably, Berth No. 3 (Laos-Vietnam International Port) was put into operation on April 28, with a total investment of over VND 1,000 billion. The berth is 225 meters long, capable of receiving general cargo ships with a capacity of up to 45,000 DWT, with an exploitation capacity of up to 2.15 million tons of cargo/year, a land area of 43,928 m2, and a water surface of 42,000 m2.

When put into operation, Berth No. 3 will contribute to improving cargo handling capacity, meeting the increasing demand for cargo transportation. In addition, this project will also help increase the attractiveness of investment attraction in the area, better serve import and export activities, trade with Laos and Northeast Thailand; and facilitate the Government of Laos to import and export goods through Vietnamese seaports.

What surprised the Lao delegation?

After visiting and learning about the activities of the two companies, Mr. Song Lao Yong Nu and Mr. Kham Ven Pan Nha Nu Vong expressed their impression of the potential and outstanding advantages of the Vung Ang Economic Zone. Representatives of the Lao delegation emphasized that Vung Ang not only possesses a strategic geographical location but also has strong infrastructure investment, thereby creating a solid foundation for economic development.

The delegation also highly appreciated Ha Tinh’s efforts in attracting investment, as evidenced by the successful implementation of many large-scale, modern projects such as the Hung Nghiep Formosa Ha Tinh Steel Complex Project. According to the Lao delegation, this is not only a symbol of industrial development but also testament to the favorable investment environment that Ha Tinh has fostered.

Especially, the operation of Berth No.3 is considered a breakthrough, as it not only improves the exploitation capacity but also significantly contributes to increasing the volume of import and export goods of Laos through the port, while consolidating the role of Vung Ang as a strategic gateway for trade in the region.

Located in the southern part of Ha Tinh province, the Vung Ang Economic Zone was established in 1997, covering an area of nearly 22,800 hectares, based on the Vung Ang industrial-seaport area. It is part of the Vung Ang urban area and the North Quang Binh – South Ha Tinh economic region.

According to the Management Board of Ha Tinh EZ, there are currently 153 valid projects. Of these, there are 57 foreign investment projects with a total registered capital of US$16 billion and 96 domestic investment projects with a total registered capital of VND 77,000 billion.

Notably, in the first four months, budget revenue from the Vung Ang EZ reached more than VND 3,793 billion. Of which, domestic revenue was VND 1,551 billion and import-export revenue was VND 2,242 billion. The total number of employees working in the EZ is about 20,015 people.