Quang Nam Set to Move Out from Danang’s Shadow

Quang Nam is a province in central Vietnam, immediately next to Danang.  Because of its close proximity to Danang, Quang Nam also is overshadowed by Danang and its success although it also attracts projects and investment because of its close location to Danang and through using the proximity to speed access to Danang’s port, airport and increasing numbers of tourist. Historically, Quang Nam was the center of the Champa Empire which ruled large parts of Vietnam and parts of Cambodia from the 7th through the early 19th century. Quang Nam is also the former port of Hoi An, a UNESCO Cultural Site, which is now a major tourist center and was at one point the largest port in SE Asia and a prosperous trading port into the 19th Century. In addition to being know for Hoi An which is now a major tourist area for Vietnam.  It is also known for two famous spices: the world's highest essential oil content Trà My cinnamon (aka Saigon cinnamon) and Ngọc Linh ginseng. Quảng Nam is famous for its production of Saigon cinnamon. According to provincial and government records, the economy of Quảng Nam has grown swiftly. GDP growth in 2010 was 12.7% and the goal for 2011 is 13.5%. Growth has been between 12 and 15% in the years from 2005 to 2007, mostly driven by a booming industrial sector (growing more than 20% per year) and also by growth in the tourism sector primarily by visitors to Hai An and the surrounding area.  Despite this relatively fast growth, GDP per capita in 2007 was 8.76 million Vietnamese dong, 65.2% of the national average which demonstrates that many of the rural people still have yet to share in much of this increasing wealth. Farming and related activities are still the heart blood of Quang Nam’s economy. Growth of this sector has been 2-4% over the last decade.  The vast majority of the work force (approximately two-thirds in 2007 is still employed in this sector).  Harvests of rice, which takes up 75% of the agricultural area, has increased from 329,900 tons in 2000 to 395,100 tons in 2007.  Additionally, sugar cane and tobacco, which are both falling in popularity and production and rubber which is increasing in both popularity and production are also grown. Since the year 2000, industrial GDP has driven Quang Nam’s economy. In 2010 it contributed 40.1% to the provincial GDP, up from just 25.3% in 2000 and employed 99,600 workers in 2007, compared to 51,600 in 2000. Industrial GDP has increased 2.48 times between 2000 and 2007[3] and continues to grow at around 20%. Chu Lai Economic Zone is located in the south of the province along National Road 1 and is the site of many of the province’s factories. A smaller industrial zone is located in Tam Ky with factories producing electrical equipment, garments, and processed wood. Major industrial export products include leather shoes (US$51.26 million in 2007), garments (US$31.33 million), wooden products (US$8.587million), and paper materials (US$2.136 million). In 2011 Quang Nam attracted 10 projects with total registered capital of 164,993,994 US$, only second to Danang city in term of the FDI attraction among 12 provinces of Central and highlands of Vietnam. It is worthy to note that at the end of 2010, Quang Nam attracted 2 big projects as follows: 1. The Nam Hoi An resort and entertainment complex of 4.12 billion US$ by Vina Capital and Genting Malaysia. 2. The Urban Residential Area and Eco-Cultural Resort Project in Hoi An with registered capital of 135 million US$ by Hungarian investors. At present, Quang Nam is promoting some other projects such as: (i) Industrial Park Development Project in Chu Lai OEZ with estimated registered capital of US$100mil by Korean investors and (ii) a Hospitality Training College by Singapore & Australian Investors in the South of Hoi An. (Picture: CUADAI BRIDGE IN HOIAN: across Thu Bon River, 150 mil USD under construction) Our Other Related Articles: Quang Nam Aims High for an Industrialized Future Investing in a New Factory in Vietnam: Danang and Quang Nam Province Dung Quat Economic Zone (EZ), Quang Ngai promises to soar About the Author:   Christopher W. Runckel, a former senior US diplomat who served in many counties in Asia, is a graduate of the University of Oregon and Lewis and Clark Law School. He served as Deputy General Counsel of President Gerald Ford’s Presidential Clemency Board. Mr. Runckel is the principal and founder of Runckel & Associates, a Portland, Oregon based consulting company that assists businesses expand business opportunities in Asia. (www.business-in-asia.com) Until April of 1999, Mr. Runckel was Minister-Counselor of the US Embassy in Beijing, China. Mr. Runckel lived and worked in Thailand for over six years. He was the first permanently assigned U.S. diplomat to return to Vietnam after the Vietnam War. In 1997, he was awarded the U.S. Department of States highest award for service, the Distinguished Honor Award, for his contribution to improving U.S.-Vietnam relations. Follow us on Twitter: @InsightNewsAsia Back to Homepage