In 2012, the Prime Minister approved the construction planning of the South Phu Yen - North Khanh Hoa regional economic zone by 2025, including three districts in the south of Phu Yen, namely Song Hinh, Dong Hoa and Tay Hoa, and two districts in the north of Khanh Hoa, namely Van Ninh and Ninh Hoa, with a total natural area of about 351,500 hectares.
The planning underscored that this economic zone will play a driving role with great potential for marine economic development in the South Central Coast region; considering it a gateway for road, waterway and air traffic in the South Central Coast and Central Highlands; with special significance in terms of national defence and security.
Van Phong and South Phu Yen are two key economic zones in the region which have been invested in and built into multi-sectorial economic zones, gradually creating a driving force for the local socio-economic development.
According to a report by the Khanh Hoa Provincial People’s Committee, the economic structure of north Khanh Hoa is shifting towards increasing the proportion of non-agricultural sectors, thus reducing the proportion of the agricultural sector, in which the value of industry - construction accounts for nearly 23% of the province.
In the 2016-2020 period, the Van Phong Economic Zone attracted 42 new projects and made adjustments to increase capital for 14 projects, with total registered investment of over VND66 trillion, while its budget revenue reached more than VND25.9 trillion, accounting for about 28% of the province's total budget collection.
Meanwhile, the South Phu Yen Economic Zone attracted 49 projects with a total registered capital of more than VND4.6 trillion and US$21.4 million. An action programme on marine economic development has been deployed by the provincial authorities, with the aim to develop the South Phu Yen Economic Zone into one of the major industrial centres and seaports, affirming its position as one of eight national key coastal economic zones.
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The tunnel road running under Ca Pass has shortened the route connecting the Van Phong economic zone to Tuy Hoa Airport.
However, according to the assessment of the two provinces, due to difficult conditions and inadequate investment, and the fact that technical and social infrastructure has not yet met the requirements; while mechanisms, policies and laws related to economic zones are not synchronised and overlapping, the two economic zones have not yet made full use of their potentials.
In order to meet the development requirements, the general construction planning of the Van Phong Economic Zone and South Phu Yen Economic Zone is being adjusted in accordance with the policy approved by the Prime Minister. On the basis of the approved regional construction planning, the People’s Committees of Phu Yen Province and Khanh Hoa Province have reviewed and adjusted the planning and develop investment plans according to regulations.
The two provinces are also exerting efforts to complete procedures and invest in many important and highly dynamic projects such as the road route from the Van Phong Economic Zone to Tuy Hoa Airport; upgrading Tuy Hoa Airport to reach a capacity of welcoming 5 million passengers a year; an expressway connecting Phu Yen with the Central Highlands; railway route from Phu Yen to the Central Highlands; the north-south expressway route passing through Phu Yen Province; Buon Ma Thuot - Nha Trang Expressway; etc.
Regarding seaports, Phu Yen has also proposed to the Prime Minister to direct ministries and sectors to invest in perfecting Bai Goc Port infrastructure and upgrading Vung Ro Port to connect with Van Phong Port, in order to maximise its role as a gateway to the East Sea/South China Sea for both the South Central region and the Central Highlands.
The linkage project is expected to create a new step in the implementation of the regional construction master plan to 2025 as approved by the Prime Minister, thus the region’s great potential for marine economic development will be brought into play, creating a breakthrough in socio-economic development not only for Phu Yen and Khanh Hoa in particular but also for the South Central region and the Central Highlands in general.
