Da Nang and Quang Ngai Strengthen Linkages along the Chu Lai – Dung Quat – Nam Giang – Bo Y – East-West Economic Corridor 2 Development Axis

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On the afternoon of August 24, Da Nang City Vice Chairman Phan Thai Binh and Quang Ngai Province Vice Chairman Do Tam Hien co-chaired a meeting with leaders of relevant departments, agencies and localities from the two localities to discuss the Scheme on Linking the Development Space of Chu Lai – Dung Quat – Nam Giang – Bo Y – East-West Economic Corridor 2.

Vice Chairman of the Da Nang City People's Committee Phan Thai Binh and Vice Chairman of the Quang Ngai Provincial People's Committee Do Tam Hien co-chaired the meeting.

At the meeting, the Chu Lai Open Economic Zone Authority, the standing body of the working group responsible for developing the Scheme, reported on its coordination with the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority in reviewing the political, legal and practical foundations of the Scheme. The two sides also assessed the current status of socio-economic development, planning, infrastructure, industry, trade, services, logistics, seaports, airports and other relevant sectors.

According to the draft Scheme, the Chu Lai – Dung Quat – Nam Giang – Bo Y development space is located at the intersection of the North-South economic axis and East-West connectivity routes. This strategic location provides favorable conditions for connecting coastal areas with the Central Highlands, southern Laos, northeastern Thailand and Cambodia. It also creates opportunities to establish integrated transport and logistics chains linking raw material-producing areas and border regions with processing centers, seaports and ASEAN markets.

The Scheme aims to establish a competitive coastal-to-border economic development space with international reach, serving as a growth pole for industry, logistics, trade, high technology and innovation in Central Vietnam. In this structure, Chu Lai – Dung Quat will serve as the industrial and logistics core; Nam Giang – Bo Y – East-West Economic Corridor 2 will function as a key market connectivity axis; and Da Nang will serve as a center for services, technology, finance and innovation.

Representatives of the consulting unit presented the draft proposal.

The interconnected area has significant advantages in terms of its industrial base and transport infrastructure, with large-scale industries including automobile manufacturing, mechanical engineering, oil refining and petrochemicals, metallurgy, energy and supporting industries. It is also supported by a system of seaports and airports, the North-South railway, the Eastern North-South Expressway, National Highway 1, National Highways 14B, 14D and 14E, coastal routes, and the Nam Giang International Border Gate.

Under the draft Scheme, the areas are expected to complement one another along an integrated value chain. Dung Quat will focus on steel, materials, chemicals, energy and heavy mechanical engineering; Chu Lai will develop manufacturing, assembly, automobiles, electronics, automation and supporting industries; Nam Giang and Bo Y will facilitate cargo consolidation, transshipment and connections to sources of raw materials; while Da Nang will provide trade, financial and technological services, research and development, and high-quality human resources. Together, these linkages are expected to form an integrated chain from raw materials to production, manufacturing, logistics and international trade.

Proposals for Breakthrough Mechanisms and Policies to Maximize the Benefits of Regional Linkages

Speaking at the meeting, Quang Ngai Province Vice Chairman Do Tam Hien asked the consulting unit to further clarify the objectives and significance of the Scheme, as well as its potential contributions to Da Nang, Quang Ngai and the national economy. In addition to quantifying its impact on economic growth, the assessment should examine contributions to local and central government revenues, international trade and the potential development of a large-scale logistics hub.

Leaders of departments and agencies of Da Nang City spoke at the meeting.

Vice Chairman Do Tam Hien emphasized that the Scheme should study and propose breakthrough mechanisms and policies capable of creating genuine momentum for the interconnected development space. The proposed mechanisms must demonstrate tangible benefits and contributions to the country, particularly in terms of central government revenue, science and technology, innovation, strategic materials, national defense and security.

Vice Chairman of the Quang Ngai Provincial People's Committee Do Tam Hien delivered remarks at the meeting.

The consulting unit was requested to fully update the current legal framework, clarify the basis for selecting the proposed linkage model and special mechanisms, and clearly illustrate on planning maps the shared development space and the areas under the respective jurisdiction of each locality. At the same time, a sufficiently strong coordination mechanism should be studied, together with criteria for assessing and comparing the impacts of individual mechanisms and policies, providing a sound basis for defending the proposed approach before central ministries and agencies.

With regard to resources, the Scheme should clearly identify contributions from the central government, local governments and businesses, while defining responsibilities for investment in each infrastructure project and facility. For major expressway connections, one possible approach is for the central government to finance construction while local governments take responsibility for compensation and site clearance.

Vice Chairman Do Tam Hien also proposed studying mechanisms for decentralization and delegation of authority in adjusting planning for strategic projects within the interconnected development space. The Scheme should clearly define implementation arrangements and identify the competent authority responsible for approving the Scheme in cases where proposed mechanisms go beyond the current regulatory framework.

Lương Kim Sơn, Chairman of the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority, spoke at the meeting.

For Quang Ngai, the consulting unit was requested to coordinate with the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority to update development orientations for oil refining and petrochemicals, mechanical engineering and manufacturing, shipbuilding, metallurgy and related industries. The unit should also clarify Dung Quat's role within the interconnected development space and its contribution to local and national economic growth.

Stronger Decentralization to Drive Implementation

In his concluding remarks, Da Nang City Vice Chairman Phan Thai Binh highly appreciated the active participation of departments, agencies and localities from both sides. He noted that the comments and recommendations made at the meeting provide an important basis for the consulting unit and the two Authorities to revise and finalize the Scheme and the relevant documents for submission to the Ministry of Finance and subsequently to the central government.

Vice Chairman Phan Thai Binh requested a review of the Scheme's title, scope and substantive content to ensure they are concise while fully reflecting its objectives. The Scheme should establish a clear roadmap to 2030, with a vision to 2045. It should also clearly set out the three groups of foundations—political, legal and practical requirements—while incorporating relevant central government policies and conclusions, reviewing the legal framework, and quantifying the Scheme's impacts on economic growth, local government revenues and central government revenues.

Overview of the meeting

Regarding priority sectors, the Scheme should consider adding shipbuilding, aircraft repair and maintenance, and deep processing of silica products. These sectors have development potential in the Chu Lai Open Economic Zone and should be studied with a view to establishing distinctive, high-value-added industries within the interconnected development space. At the same time, greater attention should be paid to policies for attracting experts and scientists, developing high-quality human resources and providing vocational training to meet the requirements of high-tech industries and emerging service sectors.

A key issue emphasized by Vice Chairman Phan Thai Binh was the need for stronger decentralization and delegation of authority to the two localities and the two Authorities in line with the principle of “localities decide, localities implement, and localities take responsibility.” Matters beyond their authority or newly arising difficulties should be reported to the competent authorities for consideration and resolution.

Regarding the coordination mechanism, the parties agreed that different options should be carefully studied, including consideration of the effectiveness of a Steering Committee chaired by a central government leader. Another option could be to assign the Party Committees of Da Nang and Quang Ngai to provide direct leadership, with the two People's Committees coordinating implementation. Issues beyond their authority or on which consensus cannot be reached would then be reported to the Prime Minister for consideration.

Regarding special mechanisms, the meeting agreed to study the application of the most effective and breakthrough mechanisms. Existing mechanisms should be reviewed and fully utilized, while unresolved issues or mechanisms that do not yet meet development requirements should be proposed for supplementation to ensure that the Scheme is comprehensive and feasible.

For infrastructure development, the parties agreed to study and propose inter-regional connectivity routes, including the Nam Giang – Chu Lai – Dung Quat – Bo Y connection. In terms of funding, the proposed approach is for the central government to invest in major inter-regional connectivity infrastructure, while local governments proactively allocate resources for compensation and site clearance.

Vice Chairman Phan Thai Binh requested the consulting unit and the two Authorities to urgently incorporate all relevant comments made at the meeting. Any recommendations that are not incorporated must be clearly explained, with supplementary appendices and maps prepared where necessary.

The consulting unit will coordinate with the Chu Lai Open Economic Zone Authority and the Dung Quat Economic Zone and Industrial Parks Authority to finalize the explanation and incorporation report, supplement the Scheme and prepare the draft report of the two Authorities for submission to the Da Nang City People's Committee and the Quang Ngai Provincial People's Committee before August 28.

The consulting unit will also coordinate with the Offices of the Da Nang City People's Committee and the Quang Ngai Provincial People's Committee to finalize the draft report for submission to the Standing Committee of the Da Nang City Party Committee and the Standing Committee of the Quang Ngai Provincial Party Committee for consideration and comments.

By T.Giang