Project

Ensuring water security in economic zones and industrial parks

Published

13 hours ago

March 17, 2025

In recent years, the key economic region of the central region has developed rapidly and achieved many outstanding results. Multi-sector and multi-sector economic zones and industrial parks, with a focus on industrial and service development, have created many breakthroughs for the socio-economy in the central coastal provinces.

Along with the development of infrastructure in economic zones and industrial parks, the issue of water security is of concern to localities because the demand for water resources for industry is a challenge that needs to be solved in conjunction with appropriate policies and solutions.

The central coastal provinces of Quang Nam, Quang Ngai, Binh Dinh and Khanh Hoa have 28 economic zones and industrial parks, spanning more than 16,880 hectares, attracting nearly 1,200 projects, with a total investment capital of over VND 623,800 billion, equivalent to 25.35 billion USD. The economic zones of Van Phong, Dung Quat, Chu Lai, and Nhon Hoi, along with many other industrial parks, are the driving force for the strong economic development of the region.

Water demand in industry and services increases

In recent years, the demand for water in industrial production, business and services has increased sharply in the central provinces. In addition, the requirements for sufficient and stable water sources for production, business, and water quality are also of greater concern to investors and enterprises. Currently, the total water demand for industrial production in the provinces of Quang Nam, Quang Ngai, Binh Dinh and Khanh Hoa is about 194 million cubic meters per year. The key economic zone focuses on many heavy industrial projects such as steel, mechanics, automobiles, petrochemicals, seaport services, industrial urban areas, etc., so the demand for water has been increasing by 20-30% in each phase of investment attraction.

In Quang Ngai Province, economic zones and industrial parks need 94 million cubic meters of water per year. The greatest demand is in steel production, pulp, equipment manufacturing, and petrochemicals. In Dung Quat Economic Zone, Hoa Phat Group has invested more than 7 billion USD in the Hoa Phat Dung Quat Iron and Steel Complex. This is the project with the largest water demand in Quang Ngai Province, at about 73 million cubic meters per year.

Ho Duc Tho, Deputy General Director of Hoa Phat Dung Quat Steel Joint Stock Company, said: The project receives and uses raw water from Tra Bong River, with phase 1 using about 23.7 million cubic meters per year. This is the amount of water compensated by evaporation, deducting the amount of water circulated and reused. If water is not recovered and reused, the project’s water demand would be one million cubic meters per day and night.

Quang Nam Province currently has 13 industrial parks, including 10 industrial parks in Chu Lai Open Economic Zone, attracting 255 secondary investment projects, with total registered capital of VND 85,100 billion. The total water demand for industrial production in Chu Lai Open Economic Zone, Quang Nam Province, is about 38,000 m3/day and night.

Ngo Van Hai, Deputy Director of Chu Lai Truong Hai Industrial Park and Urban Infrastructure Development Investment One Member Co., Ltd., said: THACO Chu Lai Industrial Park invests in the fields of automobile manufacturing and assembly, mechanical engineering and supporting industry, agricultural and forestry processing, etc., with total investment capital of more than 4.2 billion USD. Each year, this industrial park uses 767,500 m3 of water, supplied from the two water plants of Tam Hiep and Tam Xuan. With the increasingly expanding scale, the demand for water in the industrial park in the next 10 years is about 10.5 million m3/year.

According to the Nguyen Hong Quang, Head of the Management Board of Economic Zones and Industrial Parks of Quang Nam Province, the demand for water for industry and services is increasing. The water source for Chu Lai Open Economic Zone is relatively favourable, the raw water is mainly exploited from the surface water of Phu Ninh Lake and Thai Xuan Lake with abundant and good quality reserves. Other industrial parks use surface water sources in the surrounding area according to the planning orientation of the province. The raw water source ensures the flow and quality to supply to the water plant serving the industrial production of investors.

Ensuring stable water supply

Along with the construction of infrastructure for economic zones and industrial parks to attract investment, the central coastal provinces of Quang Nam, Quang Ngai, Binh Dinh and Khanh Hoa prioritise resources and investment in water supply and drainage infrastructure to ensure sufficient and stable supply of raw water and clean water for industrial production, trade and services. Many provinces and cities attract investors to build and upgrade factories, transmission systems and water supply stations; at the same time, zoning water supply to ensure security and safety of water sources, preventing water source disputes.

The dense network of rivers and streams, tributaries of Phu Ninh Lake, Vu Gia-Thu Bon River system in Quang Nam Province; large reservoirs of Hoa Son, Da Ban, Cam Ranh, Suoi Dau, Ta Ruc and water from Cai Nha Trang River in Khanh Hoa Province; and Tra Bong River and Tra Khuc River in Quang Ngai Province, with large water reserves, are valuable hydropower sources for agriculture and industry.

Water security is one of the important conditions to increase competitiveness in attracting investment among localities. As soon as the economic zones and industrial parks were established, the central coastal provinces calculated how to solve the strategic problem of electricity, transportation and water systems for 20-30 years. The three provinces of Quang Nam, Quang Ngai and Binh Dinh have 19 water plants, supplying 147.8 million cubic meters for industrial production and services. Nhon Hoi Economic Zone and seven industrial parks in Binh Dinh Province have a large-scale water treatment plant system, including Phu Tai Water Treatment Plant, Binh Dinh Ward Water Treatment Plant, and Quy Nhon Clean Water Plant, with a capacity of more than 37.6 million cubic meters of water per year, meeting the basic needs of industrial parks and industrial clusters in the area.

Le Tien Dung, Director of Binh Dinh Water Supply and Drainage Joint Stock Company, said that the demand for clean water is increasing in Quy Nhon City and the nearly Becamex Industrial Park with the trend of developing services, urban areas, industrial parks. Therefore, innovating production technology and providing stable and safe water for production is the top priority today.

The river and lake system has abundant raw water reserves, Quang Nam Province and Quang Ngai Province are upgrading and expanding water infrastructure, and dividing water supply zones for economic zones and industrial parks. Quang Nam Water Supply and Drainage Joint Stock Company has 11 water plants, with a total design capacity of more than 40 million cubic meters per year, providing enough water for Chu Lai Open Economic Zone, industrial parks, and industrial clusters in the province.

In addition, Quang Ngai Province has Tra Bong River and Tra Khuc River, with a total length of 204 km, and 126 reservoirs, with a total flow of about 403 million cubic meters of water, which can supply 94 million cubic meters for industry and services each year. According to Hoang Nguyen Linh Chau, Director of Vinaconex Dung Quat Joint Stock Company: Dung Quat Water Plant has a capacity of 5.5 million cubic meters per year, providing water for industrial production and main services for Dung Quat Economic Zone. From 2020 to now, the unit has supplied 17 million cubic meters of water to 50 factories and enterprises, reaching 70% of capacity.

Many enterprises in the economic zone have invested in their own water supply systems, so the plant currently only supplies to key projects such as Dung Quat Oil Refinery and auxiliary manufacturing plants. If there are many large investors, the unit will upgrade and increase the water scale accordingly according to the needs of the enterprises.

The three key economic zones of Nha Trang, Cam Ranh and Van Phong in Khanh Hoa Province aim to become the economic centre of the South Central Coast, the Central Highlands, and the whole country. The province is taking the initiative in water resources to ensuring the needs of investors and businesses are met. Water sources are mainly taken from rivers and a system of 10 reservoirs and irrigation dams, providing about 25 million cubic meters of raw water each year for industry and services.

According to statistics from the central coastal provinces, the current demand for water for industry has not fluctuated much, with the actual demand being lower than that registered by investors. Many businesses are applying water-saving circulation systems and reducing wastewater to reduce wastewater treatment costs, so the capacity to meet the demand for raw water and clean water is stable for industrial production and services in the region.

Nguyen Tu Cong Hoang, Vice Chairman of the People’s Committee of Binh Dinh Province, said Binh Dinh Province is focused on investing in the water supply system and putting water plants into operation, in order to concretise the approved Urban and Industrial Park Water Supply Planning Project. In addition, the province focuses on developing water supply infrastructure, exploiting and using water resources effectively, contributing to improving the capacity to provide clean water sources that ensure standards, standards, and safe water supply for people and production and services.

Project

Central Vietnam province aims to add 2,300 MW of wind power to development plan

Published

24 minutes ago

March 17, 2025

Industrialzone.net

Vietnam’s central province of Quang Tri plans to add 1,800 MW of 43 land-based wind power projects and 500 MW of offshore wind power to the draft implementation scheme of the national power development plan VIII (PDP VIII).

The draft scheme also features 260.5 MW of hydropower, 119.6 MW of solar power, and 23 MW of rooftop solar power for self-consumption, Quang Tri authorities discussed last week.

Quang Tri's acting Chairman Ha Sy Dong (standing) speaks at a meeting in the province, central Vietnam, March 14, 2025. Photo courtesy of Quang Tri newspaper. — Quang Tri’s acting Chairman Ha Sy Dong (standing) speaks at a meeting in the province, central Vietnam, March 14, 2025. Photo courtesy of Quang Tri newspaper.

Until 2030, Quang Tri aims to facilitate power import of 2,000 MW from Laos.

Provincial authorities will also facilitate investors of 500 kV, 200 kV, and 100 kV power grid projects, in line with the deployment of wind, solar, gas-fired power, and imported power (from Laos) projects.

Addressing the meeting, Quang Tri’s acting Chairman Ha Sy Dong asked the Department of Industry and Trade to collaborate with investors to complete the applications for in-principle approval by March 20.

He also requested the Department of Finance to finalize the land recovery plan for site clearance by March 25.

Vietnam’s current PDP VIII has 6,000 MW of offshore wind power, including 500 MW in the central-central region.

In February 2025, Vietnamese Ministry of Industry and Trade proposed delaying the development of offshore wind power until after 2030, instead of meeting the initial target of 6,000 MW by 2030.

However, in March 2025, the Government requested that offshore wind power projects under the PDP VIII must complete by 2030.

Project

Manufacturing, processing push up industrial growth in five months

Published

2 hours ago

March 17, 2025

Industrialzone.net

Vietnam’s industrial sector experienced positive growth in the January-May period, with 55 out of 63 provinces and centrally-run cities nationwide reporting annual increases in the Index of Industrial Production (IIP), according to the General Statistics Office (GSO).

The GSO identified manufacturing, processing, and electricity production and distribution as the primary drivers of the growth. Provinces recording high growth included Phu Tho (31.2%), Bac Giang (24.9%), and Binh Phuoc (14.8%). However, some other provinces like Ha Tinh, Quang Ngai and Ca Mau saw respective declines of 9%, 8.25% and 2.5% in their indexes.

Overall, the national IIP in May continued its upward trajectory, rising 3.9% month-on-month and 8.9% year-on-year. The five-month period saw an yearly increase of 6.8%.

A deeper analysis revealed the processing and manufacturing industries as the key contributor to the growth, boasting a 7.3% rise and adding 6.4 percentage points to the overall increase. The electricity production and distribution sector also performed strongly, with 12.7% growth, contributing 1.1 percentage points. Additionally, the water supply, waste, and wastewater management sector went up 6.3%, adding 0.1 percentage point. However, the mining sector experienced a decline of 5.2%, resulting in a reduction of 0.8 percentage point in the overall growth.

Specific product categories within the processing and manufacturing sectors posted impressive growth. Production of rubber and plastic products surged by 27.4%, while electrical equipment saw a 24% increase. Production of chemicals and chemical products grew by 20.1%, followed by beds, cabinets, tables, and chairs (19.6%) and metal products (13.2%).

In light of these findings, the GSO proposed a series of recommendations to further bolster Vietnam’s industrial development. It urged the Ministry of Industry and Trade (MoIT) to prioritise a structural shift toward increasing the proportion of processing and manufacturing industries within the overall industrial sector, while simultaneously reducing reliance on the assembly and processing of imported products; enhance enterprise competitiveness and incentivise the use of domestically produced goods via technical barriers for certain imports.

Additionally, the GSO recommended that the MoIT refine key institutions such as the Key Industrial Law and the Law on Chemicals. Expediting the disbursement of public investment capital and hastening crucial projects in the fields of electricity, oil and gas, manufacturing, processing, and mining are also highlighted as crucial steps.

Head of the GSO’s Industrial and Construction Statistics Department Phi Thi Huong Nga suggested that localities should launch more stimulus and promotion schemes to increase purchasing power while helping industrial firms find partners and expand markets through trade exhibitions.

Project

Massive investments flow into Cam Lam district as airport town to take shape in Vietnam’s Khanh Hoa province

Published

3 hours ago

March 17, 2025

Industrialzone.net

Hundreds of millions of U.S. dollars are flowing into Cam Lam district, providing a major boost for Khanh Hoa as the province in south-central Vietnam accelerates its plans to develop an international-standard airport town.

A corner of Cam Lam district, Khanh Hoa province, south-central Vietnam. Photo by The Investor/Nguyen Tri.

The provincial People’s Committee recently issued decisions to select investors for four large urban complex projects, with a total investment exceeding VND22 trillion ($862.24 million) in Cam Lam district.

The Cam Tan Urban Complex spans over 290 hectares in Cam Tan and Suoi Tan communes, with a projected population of around 4,020 people and a total investment exceeding VND5.73 trillion ($224.6 million).

The Cam Thuong Urban Complex, at the cost of nearing VND6 trillion ($236.9 million), covers nearly 300 hectares in the same two communes and will be home to 4,010 people.

Located in Cam Tan and Cam Hoa communes, the 300-hectare Cam Hoa Urban Complex will have an investment of over VND5.24 trillion ($200 million) and house 4,410 people.

Lastly, the over VND5.1 trillion ($200 million) Suoi Tan Urban Complex, spanning nearly 240 hectares in Suoi Tan commune, will accommodate around 4,020 people.

The provincial People’s Committee also approved a list of projects seeking non-budget investments for the 2025–2030 period, including three projects in Cam Lam.

The most notable is the 10,365-hectare Cam Lam New Urban Area project, with an investment of VND285.3 trillion ($11.18 billion). This major project aims to create a new urban area and world-class entertainment zone, making it one of Khanh Hoa’s flagship initiatives for the 2025–2030 period.

Developing Khanh Hoa’s southern growth pole

Positioned between the coastal towns of Nha Trang and Cam Ranh, Cam Lam benefits from a highly convenient transportation network.

With 13 kilometers of coastlines, the district has attracted significant investment over the past 20 years, leading to the development of numerous resorts that have transformed the area.

In February 2024, Deputy Prime Minister Tran Hong Ha approved a master plan for the new Cam Lam Urban Area until 2045. The planned area covers the entire administrative boundary of Cam Lam district, totaling over 54,719 hectares (excluding the Thuy Trieu Lagoon area).

Under the master plan, Cam Lam is set to become the southern growth hub of Khanh Hoa and the south-central coastal region, contributing to the province’s ambition to become a centrally governed city. Vietnam currently has six centrally managed cities, namely Hanoi, Hai Phong, Danang, Hue, Ho Chi Minh City, and Can Tho.

The district will be developed into a modern, international-standard airport town, focusing on coastal tourism, logistics services, finance, global innovation, education, healthcare, and cutting-edge research. The goal is to create a high-quality living environment with modern infrastructure.

In August 2024, the Khanh Hoa People’s Committee approved a zoning plan (scale 1/2000) that covers the coastal sub-area, the central urban sub-area, and the northern urban sub-area of the new Cam Lam town.

The central urban sub-area aims to develop a new political-administrative center for Cam Lam, as well as an innovation hub that is part of a larger regional center.

The northern urban sub-area will focus on developing a new urban center, featuring a chain of golf courses, amusement parks, and specialized parks near Cu Hin Mountain.

Meanwhile, the coastal urban sub-area will serve as a tourism, service, and coastal urban zone, acting as the maritime gateway to the new town.

Real estate market recovery

Nguyen Anh Tuan, vice president of the Khanh Hoa Real Estate Brokerage Association, stated that the local real estate market has emerged from its most challenging period and showed clear signs of recovery in 2024.

The market’s recovery is driven by significant improvements in infrastructure and well-planned, long-term development schemes, such as the Nha Trang master plan for 2040 and the Cam Lam airport town master plan through 2045, he noted.

These initiatives have drawn considerable interest from investors, highlighting the region’s sustainable property market growth potential.

“The real estate market in Khanh Hoa, particularly in hotspots like Nha Trang and Cam Lam, has experienced a notable rise in prices over the past year. This surge has created pressure for both homebuyers and new investors, potentially driving property prices to unsustainable levels, which could pose risks to liquidity and long-term value stability,” Tuan added.

With a strong foundation for recovery in 2024, Tuan believed that the local real estate market will continue to grow substantially in 2025, supported by the ongoing improvements in infrastructure.

Notably, key projects such as the Khanh Hoa-Buon Ma Thuot Expressway and the expansion of Cam Ranh Airport will play a pivotal role in stimulating the market and attracting further investment.