Dung Quat is a multi-sectoral economic zone with a space area of 10,300 ha, located in Quang Ngai province, just 35 km northeast of the downtown. Its ambitious design is to operate as a hub for the development of oil refining industry, petrochemistry, chemicals, large-scale industries (mechanical engineering, shipbuilding, metallurgy, cement making, container manufacturing), and consumer goods production and processing and export, intended to serve as a driving force for the whole central region of Vietnam to take off.           

As per the existing approved construction plan, 10,300-ha DQEZ is composed of (1) An industrial space of 2574 ha (East Dung Quat IZ 1668 ha, West Dung Quat IZ 665 ha, Hitech area of 250 ha), (2) Non-tariff zone of 362 ha (integrated into Chu Lai Internationa Airport for operation), (3) Port area of 378 ha (Dung Quat General Port and Specialized Port for the oil refinery).

Encouraged and entailed by the country first ever oil refinery project of over USD 2.5 billion, the investment inflow (especially heavy industry giants from around the world) pouring into the economic space is sharply on the increase.

As recently released in an interview with Dung Quat Authority top leader, Mr. Tran Le Trung, by June 2008, there have been in this economic space over 150 projects with total capital of USD 10.5 billion which are either in operation or in registration stage.

Most recently, DQEZ has consecutively met with a number of giant groups from Japan, Korea, Taiwan, USA, India, and others seeking for investment opportunities mainly in the fields of heavy industries, refining and petrochemical and steel milling with an incredible finance of up to around USD 40 billion.

Most noticeable among the mentioned above were Taiwanese Formosa Group with a proposed refining and petrochemical project of some USD 15-17 billion, KuoKuang Group (Taiwan) also with an investment conception in a refining and petrochemical project of some USD 10-12 billion, Korea-owned steel groups of Posco and Dongkuk and Indian Tata Steel with 3 steel projects of approximately USD 3-5 billion each.

Japna’s Sumitomo also intended an investment into a 2400 MW thermoelectric plant and automobile tyre making factory with a capital of USD 2.5 billion and USD 0.5 billion respectively. Japanese JFE also proposed apossibility for a USD 4 billion steel project in DQEZ.   

American Groups of SG Invest and GE did come to the scene with a suggestion put forward for consideration about a USD 3 billion 2400 MW thermoelectric station.

A rough calculation would indicate a space of over 5,000 ha to be needed for the aforesaid proposed projects, meanwhile DQEZ’s existing planned area for industrial development is just 2,333 ha which has been almost fully occupied by either operational or construction-staged large-sized projects.

Unquestionably, the rest land area of DQEZ is extemely far from meeting the need of investors for land where there huge projects may seat. And expansion of the existing land size of DQEZ  comes a naturally need-driven context.

In fact, as recently as of  1 July 2008, Quang Ngai Provincial Government did meet about the Expansion Proposal of Dung Quat Economic Zone. The proposal was unanimously agreed to submit to Central Government for approval.

As the proposal goes, existing DQEZ shall be expanded to the south to raise its total land area up to 50,000 ha, spreading out to cover Binh Son, Son Tinh and offshore island of Ly Son.

DQEZ, once expanded, may lure as much as about USD 30 billion from investors by the year 2025.

Things are still ahead.

N.N