QUANG TRI PROVINCE

General

Quang Tri is a coastal province in the North Central region of Vietnam, with a natural area of about 4,740 km2, with a population of 630,600 in 2018.

5 Reasons Why to Invest in Quang Tri Province:

  1. Strategic location on the East-West Economic Corridor;
  2. Rapidly developing infrastructure;
  3. Rich natural resources and tourism potential;
  4. A plentiful and competitive cost labor force;
  5. Attractive incentives and support for investment proposals.

Geographical location

Quang Tri province is located in Central Vietnam 598 km south of Hanoi. The North borders the Le Thuy district in Quang Binh province. The South borders Phong Dien and A Luoi districts in Thua Thien Hue province. The East borders the East Sea. The West borders Savannakhet and Salavan provinces in Laos PDR.

Land resouces

Quang Tri province has a total natural land area of 473,982 ha. In particular, the area of agricultural land is 381,008 ha, accounting for 80.38%; Non-agricultural land is 39,144 ha, accounting for 8.26%; unused land is 53,829 ha, accounting for 11.36%.

Forest resources

In 2015, the province had 242,240 hectares of forest land, including 141,499 hectares of natural forest and 100,741 hectares of plantation forest. In general, there are good quality planted forests, and the largest area of FSC certified plantation in the country. Production forests mainly consist of cajuput, acacia magnum, and hybrid acacia. These tree variants are densely concentrated and intensively cultivated. Economic efficiency of the forestry industry is quite high, attaching importance to the introduction of new trees in production forests.

Marine and coastal resources

Quang Tri has a 75 km coastline with 2 important creeks, Cua Viet and Cua Tung. Exclusive economic zone territorial waters span over 8,400 km2, featuring large fishing grounds, much seafood of high economic value such as lobster, cuttlefish, crab, sea cucumber, algae and some fish, and rare corals.

14 nautical miles from the mainland, Con Co Island is an important economic and defense position, currently building a fishing port and the Con Co fishing logistics service area to serve boats in the province and other provinces in the region. Along the Quang Tri coast, there are many beaches, beautiful landscapes and revolutionary historical sites that can be tapped for tourism potential such as Cua Viet, Cua Tung, My Thuy, Trieu Lang and Vinh Moc tunnels, to name a few.

Not far from the Quang Tri coast, about 100 - 120 km away there is high quality methane, with reserves of 60 - 100 billion m3. The mine is located near Con Co Island. In order to exploit this gas source to bring it to the Vietnamese mainland, Quang Tri province is the nearest location to do so, and creates the possibility for industrial development by way of gas extraction and new technological materials. There is also a rich oil and gas deposit 65 km near Quang Tri province, amounting to 400-500 million barrels of petroleum, and about 7-9 trillion cubic feet of gas deposits.

As mentioned above, the results of drilling wells in 2019 and 2020 have confirmed rich oil and gas deposits in the area of Ken Bau oilfield of Quang Tri province, specifically in the area of Lot 114 and adjacent lots. It is expected that the Ken Bau Discovery could be put into exploitation development from 2028. This is an extremely important premise for energy exploration and extraction activities, as well as the next development in Lot 114 and surrounding areas, resolutely contributing to the strong development of the electricity industry, and providing vital support to oil and gas production in Quang Tri - Thua Thien Hue and Central Vietnam regions.

Natural resources

Quang Tri has relatively diverse and abundant mineral resources. By the end of 1995, the province had counted 48 mines and ore points, of which 17 sources contained commercially-viable metal deposits, while the other 22 sources were commercially-viable materials for the construction industry.

Limestone mines and cement production materials stretch in a band from Northwest - Southeast in the province, with reserves of about 3.5 billion tons. Titanium is distributed along the Vinh Thai - Vinh Kim coast, with reserves of 1 million tons. The province also possesses many precious minerals such as gold and other valuable minerals and raw materials, as well as a relatively large amount of mineral water and silicate sand, helping Vietnam secure a self-sufficient future for industrial production purposes, and is a great advantage for Quang Tri industrial potential in the future.

Quang Tri has a rich and diverse potential of a bevy of mineral resources, fully capable for industrial extraction for use in industry. It has more than 30,000 hectares of basalt red soil suitable for industrial tree development, with thousands of hectares of rubber, coffee, and pepper. It is an abundant source of high quality materials for developing industry. There are thousands of hectares of reforestation and regeneration areas for wood and paper industries. With 75km of coastline, a large fishing grounds (over 8,400 km2) provides favorable conditions for developing the seafood industry for export and domestic tourism purposes.

Population and labor

In 2018, the population of the province was 630,600 people. Urban population accounts for 190,900 people, accounting for 30.2%. The natural population growth rate was approximately 0.5% from 2010 to 2015.

In 2018, the whole province had 349,800 people of working age, accounting for about 57.5% of the population. The number of people of working age increased by an average of about 3,000-4,000 people each year. The trained and qualified labor force of the province is still limited. The number of people who have reached the elementary level with a vocational certificate or higher accounts for 25.2% (of which college and university or higher accounts for 4.4%; professional secondary school 5.9%; technical workers with a degree 1.5%, technical workers without a degree 8.3%, primary / vocational certificates 2.9%). The rest are mostly unskilled workers, accounting for 74%. The majority of labor in the province work in agriculture, forestry, and fishery industries. Labor in the construction industry and service sectors tends to account for an increasing share of the labor structure.

Culture and tourism potential

Quang Tri has natural scenery which holds great potential for tourism, widely distributed throughout the province and near major transport points, making it very convenient for untapping this great potential.

Quang Tri at present is primarily known for its revolutionary war relics, including famous landmarks such as Quang Tri Citadel, Vinh Moc Tunnels, Hien Luong, Con Tien, Doc Mieu relics, Ho Chi Minh Road, Khe Sanh, Vay Village, and the Truong Son martyrs cemetery.

General Import & Export Commodity

Regarding the export commodity market in 2019, the United States is Vietnam's largest export market with a turnover of $60.7 billion USD, rising 27.8% over the previous year; followed by the EU market with $41.7 billion USD, down -0.7%; China reached $41.5 billion USD, inching up by +0.2%; the ASEAN market reached $25.3 billion USD, increasing by 1.9%; Japan reached $20.3 billion USD, rising steadily by 7.7%; South Korea reached $19.8 billion USD, also expanding steadily by 8.3%.

Regarding the imported commodity market in 2019, China remained Vietnam's largest import market, with a turnover of $75.3 billion USD, strongly rising 14.9% over the previous year; followed by the South Korean market, with $47.3 billion USD, down -0.6%; ASEAN market reached $32.1 billion USD, inching up by 0.8%; Japan reached $19.6 billion USD, rose 3%; The EU market reached 14.8 billion USD, rising well by 6.4%, whereas the United States reached 14.3 billion USD, rising strongly by 12.3%.

QUANG TRI SOUTHEAST ECONOMIC ZONE

General

Southeast Economic Zone is located in the southeast of Quang Tri province, including 17 towns and communes of 03 coastal districts: Hai Lang , Trieu Phong, and Gio Linh, which covers an area of 23,792 ha with a population of 77,000.

Quang Tri province has finished its master plan, which spans 11,469 ha and focuses on calling for investment projects. Up to now, there have been 28 projects with a total registered investment capital of $598 million USD. Of these, 17 projects are currently under consideration and researching investment potential, with a total estimated investment capital disbursement of $7 billion USD.

It includes 6 functional areas in the master plan: Industrial Zone; Administrative Area; Residential Area; Tourist Area; Service Area; and My Thuy Deep-water Seaport Area.

It is a general and multi-functional economic zone. It represents an economic breakthrough, and an important main point investment of Quang Tri province, as well as a development hub of Central Vietnam as well. The economic zone will serve as an international trade center, and an industrial center for the processing of agro-forestry-aquatic products, construction materials, and electricity production, tourism, trade-service, seaport of the Central Vietnam region, etc.

Boundary

The boundary of the planning area is specified as follows: The East borders the East Sea; The West borders Trieu Do, Trieu Dai, Trieu Hoa, Trieu Tai and Trieu Trung (Trieu Phong district), Hai Xuan, Hai Thuong, Hai Thien, Hai Thanh and Hai Hoa (Hai Lang district); The North borders with Trung Giang commune, Gio My, Gio Thanh, Gio Chau (Gio Linh district); The South borders Phong Dien district - Thua Thien Hue province.

Goal

- Building Southeast Quang Tri Economic Zone in accordance with the national development strategy in general and Vietnam's sea development strategy in particular;

- Building Southeast Quang Tri Economic Zone into a dynamic and sustainable economic development area. It is an investment and transshipment center of the region and the region, closely associating economic development with assurance of national defense and security;

- Constructing Quang Tri Southeast Economic Zone into a breakthrough development area to create a driving force for socioeconomic development of Quang Tri province; creating modern technical and social infrastructure systems; promoting advanced and civilized urban areas, and sustainable environment and efficient use of land;

- To continue implementing zoning plans, detailed planning of functional areas of economic zones & rural residential areas, sector-based plans, and investment projects as according to the general planning approved basis for the construction of projects in the Economic Zone; To attract investment capital sources, while proposing mechanisms and policies for implementation.

Population size

- Current population size: 77,000 people

- Forecast of population size until 2035: About 150,000 people, with an urbanization rate of about 70%

EAST - WEST ECONOMIC CORRIDOR (EWEC)

The concept of “Economic Corridor” is presented by the 8th GMS Ministerial Conference (GMS). In the joint statement of the conference, “Economic Corridor” is the organic mechanism linking production, trade and investment. In the context of the conference, the economic corridor needed to be “a link between manufacturing, trade, and infrastructure in a particular geographic area.”

 

From the above expression can be seen, the Economic Corridor is a new cooperative measure to promote cooperation and economic development of the sub-regional countries. The Economic Corridor, as seen below:

 

 

Introduction to the East-West Economic Corridor

The East-West Economic Corridor (EWEC) is a large project, traveling through thirteen provinces of Vietnam, Laos, Thailand and Myanmar, with a length of 1,450km, the westernmost being the port city of Mawlamyine (Myanmar) Passing through the state of Kayin (Myanmar), the provinces of Yasothon, Mukdahan (Thailand), Savannakhet (Laos), Quang Tri, Thua Thien Hue and the easternmost city of Da Nang, Vietnam. The Greater Mekong Sub-region (GMS), discussed and agreed at the 8th GMS Ministerial Conference in October 1998, was officially opened on December 20th, 2006.

 

The East-West Economic Corridor is diverse in terrain, climate, coastal Mawlamyine (Myanmar), lowland and hilly south of Thailand, wetland, Savannakhet forest and shrub and Hilly midlands in Central Vietnam. Commercial activity of this corridor is concentrated in 6 major cities: Mawlamyine, Phitsanulok, Khon Kaen, Savannakhet, Hue, Da Nang and some other small cities. At the same time, the East-West Economic Corridor also intersects some North-South routes such as Yangon - Dawei, Chiang Mai - Bangkok, Road 13 (Laos) and National Highway 1A (Vietnam) and connects major trade centers such as Bangkok, Ho Chi Minh City.

 

Economic Characteristics of East-West Economic Corridor

In the field of agriculture, localities in the East-West Economic Corridor have agriculture which accounts for 20-50% of the economy. Most of the local agricultural output in the corridor comes from agro-based industries such as food processing, beverage, seafood, forestry, etc., depending on the characteristics of each area.

 

The light industry is based on the exploitation of natural resources. Thailand is the most developed country in the Corridor; its production is concentrated in the wood processing, garment and color metallurgy industries. Laos has developed textile and electrical industries... because of the advantage of enjoying the preferences under the system of universal preference.

 

Regional trade has seen a significant increase (total exports and imports between Laos, Thailand and Myanmar average increase of over 30%/year). Exchange of goods mainly reflected the comparative advantages of each country, such as vegetables, fruit, timber, livestock, textiles... and also plays the role of transit goods to penetrate other markets.

 

In the field of investment, in general, the amount of domestic and foreign investment capital in the provinces and cities in the East-West Economic Corridor is still low compared to other provinces in that country, which does not reflect the potential of localities.

 

In the field of tourism services, the East-West Economic Corridor has great potential for tourism development thanks to its convergence of tourist destinations, rich in types such as historical, cultural and ecological relics.

 

The role of the East-West Economic Corridor for Vietnam

Vietnam is located at the eastern end of the East-West Economic Corridor, which is a focal point for the East Sea not only of EWEC but of the entire Greater Mekong Sub-region. Da Nang City and Quang Binh, Quang Tri and Thua Thien Hue provinces have great potential for geographic, marine, cultural, historical and human resources development along with some neighbouring provinces such as Quang Nam Quang Ngai thanks to the central key economic region of country.

 

Thus, it can be said that the East-West Economic Corridor plays an important role in the development of the provinces of Vietnam in the following areas:

 

First, the provinces in Vietnam are a gateway to the sea, which is convenient for the countries in the corridor. Through EWEC, we can co-operate in transit, support local inland areas to open the sea, serve as the focal point for the supply of goods and raw materials.

 

Second, to help the provinces of Vietnam including Da Nang, Thua Thien Hue, Quang Binh and Quang Tri actively promote the regional economy by expanding investment, trade and tourism, thereby promoting the exchange of people and Goods flowing through the corridor.

 

Third, the East-West Economic Corridor contributes to the promotion of tourism cooperation among local areas from marine tourism, ecotourism, environment, cultural tourism, and historical tourism. Thus contributing to improving living standards and income for people in Da Nang, Thua Thien Hue, Quang Binh and Quang Tri.

NORTHEAST THAILAND

General

The Northeast of Thailand is located along the Mekong River with the border with Laos. Interestingly, it is actually closer to the East Sea off the Vietnamese coastline than it is to the Gulf of Thailand. A railroad connects northward to Vientiane, the capital of Laos. The road network is quite developed, including roadways A3, A12, A14, and A15 belonging to the Trans-Asia road network linking to the sea. Northeast Thailand accounts for one-third of Thailand's area, and most of this area is in the highlands. Its economic activity is dominated by agriculture and animal husbandry. The population of this region accounts for about 34% of the whole country. The growth rate of the region's gross domestic product lags behind a bit, and is only equal to 60% of the national growth rate.

The Thai government has issued many preferential policies to develop this region's economy. The Thai government has also decided upon development directions for the region: improving rural infrastructure, and building modern agricultural industrial structure into a closed chain.

Developing industry with local raw materials and importing from the rest of Southeast Asia. After processing finished sea products, Thailand re-exports these goods to Vietnam via Laos, with the final export point being the East Sea gate on the Vietnamese coastline, of which it is then shipped by Port to global markets.

Macroeconomic situation

Thailand is a country with a relatively high economic growth rate compared to other countries around the world, making it a desired integration partner for regional trade and shipping.

Economic growth: In the 5 years from 2012 to 2017, the Thai economy developed relatively quickly and on a continuous basis. The GDP growth rate reached 4.13% on average, whereas in 2007 the growth rate was only 3.75%. Compared with other countries in the region like Cambodia: 6.9%; Vietnam 6.8%; Indonesia: 4.76%; Philippines: 5.1%; Malaysia: 4.39%; Singapore: 3.6%.

The gross domestic product at current prices in 2007 reached $262.94 billion USD, rising to $543.65 billion USD in 2019.

Average income per capita: GDP per capita in 2000 was $2,020 USD/person, rising to $3,851 USD/person (1.9x higher than 2000). GDP per capita in 2019 was $8,074 USD/ person, a rise of $4,223 USD/ person in just 12 years.

Thailand's population in 2008 was 66.1 million, rising to 69.3 million by 2019.

Exports to Vietnam in 2014 reached $3.5 billion USD, while imports reached $7 billion USD; This expanded to $6.56 billion USD and $11.65 billion USD in terms of exports and imports respectively in 2019. The average annual growth rate for 2010 - 2019 reached 6.4% per year.

LAOS PDR

General

The Lao People's Democratic Republic is a landlocked Southeast Asian country located between Thailand and Vietnam. The South borders with Cambodia, the North borders China, and its West borders Myanmar, with a total border length of 6,080 km. The population in 2012 was 6.5 million, the total area was 232,100 km2, the proportion of the urban population accounted for 27%, and the average population density of 28 people/km2 was much lower than that of neighboring countries, like Vietnam, China, and Myanmar.

GDP of Laos in 2011 was $8.297 billion USD, growing to $19.12 billion USD by 2019, with an average annual growth rate of over 7.3% for 2000-2005 and more than 15.3% for 2006-2011. The economic structure is illustrated through the following table:

In all sectors, (and especially mining, hydropower, services, tourism, and agriculture) the economy aims to achieve strong growth. Foreign currency reserves were high, reaching nearly $1 billion USD by the end of 2019, and inflation was moderate, at 3.32%. The accession to the WTO in February 2013 was a contributing factor to promoting the economic development of Laos for years to come. In general, over the past years, Laos has experienced strong growth steps compared to other Southeast Asian countries and the region.

The Laos economy foundation rests upon minerals and forestry products. These are also two industries that account for a large proportion of Laos' import and export turnover. Products from these industries are transited through Vietnam and Thailand to export to countries around the world.

With the advantage of being close to Central Laos (where there are many mineral mines), My Thuy Port has great opportunities to access and promote the promotion of Laos' transit goods exported through the Port.

Due to a hilly and mountainous geography, the main mode of transport of goods and passengers in Laos is by road. Road traffic in Laos is considered relatively good, with little traffic congestion. The modes of transport by river and air account for only a small part of overall transportation.

Import

Some of Laos' major import products include: petroleum products, machinery, transport equipment, construction materials, and agricultural products (Remember to change charts to say "Import products from Laos" / "Export products from Laos"

Laotian exports to Vietnam in the first 2 months of 2019 reached $97.4 million USD, while imports reached $30.73 million USD.

Export

The main export markets of Laos are China, Thailand, Vietnam, EU, Nigeria and India

In recent years, Laotian industrial products have multiplied in scale many times over, through many examples such as: beer output (15.6x), beverage (7.5x), timber (25.3x), and garments (40x). In general, industrial production in Laos is mostly small-scale production. Laos' main export products are electricity, timber, tin, and coffee.

Historical reference data, by sector

Historical reference data, by sector 2008 2009 2010 2011
1

Agriculture, forestry and fisheries

34.90%

35.00%

32.70%

30.00%

2

Industry and construction

28.50%

26.70%

31.80%

34.70%

3

Service

36.60%

38.30%

35.50%

34.50%

LAOS PDR

General

The Lao People's Democratic Republic is a landlocked Southeast Asian country located between Thailand and Vietnam. The South borders with Cambodia, the North borders China, and its West borders Myanmar, with a total border length of 6,080 km. The population in 2012 was 6.5 million, the total area was 232,100 km2, the proportion of the urban population accounted for 27%, and the average population density of 28 people/km2 was much lower than that of neighboring countries, like Vietnam, China, and Myanmar.

GDP of Laos in 2011 was $8.297 billion USD, growing to $19.12 billion USD by 2019, with an average annual growth rate of over 7.3% for 2000-2005 and more than 15.3% for 2006-2011. The economic structure is illustrated through the following table:

In all sectors, (and especially mining, hydropower, services, tourism, and agriculture) the economy aims to achieve strong growth. Foreign currency reserves were high, reaching nearly $1 billion USD by the end of 2019, and inflation was moderate, at 3.32%. The accession to the WTO in February 2013 was a contributing factor to promoting the economic development of Laos for years to come. In general, over the past years, Laos has experienced strong growth steps compared to other Southeast Asian countries and the region.

The Laos economy foundation rests upon minerals and forestry products. These are also two industries that account for a large proportion of Laos' import and export turnover. Products from these industries are transited through Vietnam and Thailand to export to countries around the world.

With the advantage of being close to Central Laos (where there are many mineral mines), My Thuy Port has great opportunities to access and promote the promotion of Laos' transit goods exported through the Port.

Due to a hilly and mountainous geography, the main mode of transport of goods and passengers in Laos is by road. Road traffic in Laos is considered relatively good, with little traffic congestion. The modes of transport by river and air account for only a small part of overall transportation.

Import

Some of Laos' major import products include: petroleum products, machinery, transport equipment, construction materials, and agricultural products (Remember to change charts to say "Import products from Laos" / "Export products from Laos"

Laotian exports to Vietnam in the first 2 months of 2019 reached $97.4 million USD, while imports reached $30.73 million USD.

Export

The main export markets of Laos are China, Thailand, Vietnam, EU, Nigeria and India

In recent years, Laotian industrial products have multiplied in scale many times over, through many examples such as: beer output (15.6x), beverage (7.5x), timber (25.3x), and garments (40x). In general, industrial production in Laos is mostly small-scale production. Laos' main export products are electricity, timber, tin, and coffee.