Vietnam Investment Review – Six northern central provinces will join hands to hold an investment promotion conference on October 17 to woo foreign investors to this untapped region.

The provinces include Nghe An, Thanh Hoa, Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue. The conference, supported by the Ministry of Planning and Investment (MPI), will offer investors an insight into potential as well as opportunities in the north-central region. "We expect investors will have a comprehensive view about the region and make investment here," said Ho Duc Phoc, chairman of Nghe An Provincial People's Committee.

Six provinces are now home to five coastal economic zones including Nghi Son in Thanh Hoa, East-South in Nghe An, Vung Ang in Ha Tinh, Hon La in Quang Binh and Chan May-Lang Co in Thua Thien-Hue. The zones, where investors can enjoy the highest tax incentives regulated by the governments, have big advantages for attracting investors.

Furthermore, transport infrastructure in the region has been significantly improved in the recent years. Each province has a seaport which could accommodate vessels up 50,000 dead weight tonnes, while four out of six provinces have airports.

"Our attractiveness to investors is increasing," said Phoc. Statistics from the MPI's Foreign Investment Agency show that those six provinces have attracted 243 foreign direct investment (FDI) projects so far, capitalised at nearly $20 billion. This committed capital accounts for 10 per cent of total FDI commitments in the country, a level that Foreign Investment Agency director Do Nhat Hoang said was still "modest". He said foreign investors should pay more attention to this region when they looked for an investment locations in Vietnam.

"The north-central region is ideal for manufacturing and energy industries. This is also a gateway for businesses to expand markets into Laos and even Thailand," he added.

The number of FDI projects in this region remains small in comparison with 13,000 projects committed national wide, but the presence of several big foreign investors there is a good signal. Formosa Plastics Group, the Taiwan's largest group is building an $8 billion seaport and steel manufacturing plant in Vung Ang economic zone. Kobe Steel, a Japan's leading steel-maker, is preparing for the construction of $1 billion iron nugget factory in East-South economic zone.

In Thanh Hoa's Nghi Son economic zone, a joint venture between PetroVietnam, Kuwait Petroleum International Japan's Indemitsu Kosan Corp and Mitsui Chemicals Inc is building a $6.2 billion oil refinery.

In Chan May-Lang Co economic zone, Thua Thien-Hue province, Singapore's Banyan Tree Holdings is developing its $875 million property Laguna Lang Co project. Late last month, the developer started selling the first 40 condominiums.