Dung Quat – A Key Driver of Quang Ngai’s Economic Growth

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Dung Quat Economic Zone (EZ) has been identified as a key driver of economic growth in Quang Ngai Province. In the new development phase, the focus is shifting from simply attracting a large number of investment projects to selecting projects that generate high added value, create linkages with supporting businesses, and contribute to the development of an integrated industrial and service ecosystem.

Attracting Strategic Projects to Build an Industrial Ecosystem

According to Mr. Luong Kim Son, Head of the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority, the guiding principle for Dung Quat in the new development phase is to select the right investors, the right sectors, the right technologies, and the right timing.

A large-scale investment project is expected not only to create direct economic value, but also to establish linkages with local enterprises, generate high-quality employment, contribute to state budget revenues, and, importantly, attract supporting and satellite projects.

Under the Dung Quat Development Master Plan to 2045, Dung Quat Economic Zone is positioned as a coastal industrial center and a major trade, logistics and transshipment hub of the Central Vietnam Key Economic Region.

Building on its existing advantages, key industries such as oil refining and petrochemicals, metallurgy, mechanical engineering, supporting industries, shipbuilding and ship repair will continue to serve as important pillars of Dung Quat Economic Zone.

However, the development strategy is no longer focused solely on expanding production capacity. Greater emphasis is being placed on higher value-added products, including high-quality steel, specialty steel, downstream steel products and petrochemical products.

Energy and green industries are also among the priority areas. The expansion of Dung Quat Refinery, together with the development of renewable energy and clean industries, is expected to create new momentum for the next phase of economic growth.

Alongside industrial development, logistics and the port economy offer significant potential for further growth. Dung Quat's deep-water port advantages can be further leveraged through the development of warehousing, port services, multimodal transportation, distribution centers and import-export services.

The Dung Quat Logistics Center is expected to become an important link in this logistics network.

The latest figures demonstrate the continued investment appeal of Dung Quat. During the first eight months of 2026, the economic and industrial zones of Quang Ngai attracted approximately US$491.14 million in newly registered and additional investment capital.

As of this period, there were 441 valid investment projects, with total registered capital of approximately US$19.67 billion, including 63 foreign direct investment (FDI) projects.

Creating the Conditions for the Next Wave of Investment

To transform investment capital into sustainable growth capacity, Dung Quat needs to address several key issues, including infrastructure, serviced land, administrative procedures, human resources and logistics. These are critical conditions for attracting and accommodating large-scale and high-tech investment projects in the coming period.

According to the Head of the Dung Quat Economic Zone and Quang Ngai Industrial Parks Management Board, infrastructure development must be ahead of investment demand.

Some major roads and internal roads within the economic zone have deteriorated, while water supply and drainage systems, wastewater treatment facilities and environmental infrastructure remain incomplete and insufficiently synchronized.

Accordingly, a strategic investment program for the 2026–2030 period is needed, with priority given to strengthening connectivity between Dung Quat Port, expressways, national highways and industrial parks, while completing water supply, wastewater treatment, environmental and digital infrastructure.

Another major challenge is the availability of serviced land and site clearance. According to Mr. Son, resettlement arrangements should be prepared in advance, followed by compensation, site clearance and the completion of essential infrastructure. This approach will help create a readily available land fund that can be handed over to investors in a timely manner.

With regard to investment procedures, the on-site one-stop mechanism needs to be operated more effectively through appropriate decentralization and delegation within the framework of the law.

For large-scale projects, dedicated task forces may be established with clearly defined focal points, processing timelines and digital progress-monitoring mechanisms.

For investors, compliance with regulations is essential, but so is the ability to anticipate processing timelines and clearly identify the authorities responsible for each stage of the process.

Human resources are another increasingly important issue. As of June 2026, the total workforce in Dung Quat Economic Zone and the industrial parks was approximately 81,700, including around 75,000 workers in Dung Quat.

As projects in technology, energy, mechanical engineering and logistics continue to develop, demand for engineers, highly skilled technical workers and industrial management personnel is expected to increase.

According to Mr. Son, an immediate solution is to strengthen cooperation between enterprises and universities, colleges and vocational education institutions to provide training aligned with actual business needs.

At the same time, the development of social housing, schools, healthcare facilities and public transportation is essential.

Dung Quat should not be viewed merely as a production location. To attract and retain workers and experts, the economic zone needs to gradually become a place where people can both work and establish stable lives.

Strengthening Logistics and Regional Connectivity

Logistics is also a particularly important component of Dung Quat's future development.

Dung Quat has a deep-water port, but its warehousing and multimodal transportation systems have not yet fully met demand.

The development of a large-scale logistics center connected with the port, bonded warehouses, cold storage facilities, distribution centers and an Inland Container Depot (ICD) would help reduce logistics costs, improve connectivity and expand market access for businesses.

In the longer term, studying the development of railway connectivity to the port, improving routes connecting Dung Quat with the Central Highlands, and strengthening connectivity with the Bo Y International Border Gate would open up new development opportunities.

Once these regional connections are completed, Dung Quat could further enhance its role as a gateway for import-export activities and goods transshipment serving Central Vietnam, the Central Highlands and the East–West Economic Corridor.

In other words, competition for investment attraction is entering a new phase. It is no longer only investors who select their investment destinations; localities must also select projects that are aligned with their long-term development strategies.

A major investment project creates lasting value when it generates multiple layers of benefits, including supporting enterprises, skilled employment, logistics services, state budget revenues and new industrial capabilities.

By addressing these bottlenecks, Dung Quat will have greater potential to evolve from an economic zone characterized by a concentration of major projects into an integrated industrial–logistics–energy ecosystem capable of generating broader spillover effects.

This will provide an important foundation for Quang Ngai to enter a new phase of economic growth, in which the quality of investment flows is as important as the scale of investment capital.

Mr. Luong Kim Son – Head of the Dung Quat Economic Zone and Quang Ngai Industrial Parks Management Board.

By Thao Giang