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.
