Japan’s Sumitomo Corp. is looking to pump hundreds of millions of US dollars into the Van Phong Economic Zone (EZ) in central Vietnam, local Tuoi Tre newspaper reported Saturday.

The corporation said it planned to develop the entire zone in coastal central Khanh Hoa Province by teaming up with other companies to generate staggering investment capital of some US$15 billion.

The Japanese investor has already proposed to the Vietnamese government the project, which would see a cash injection of some $600 million into the zone to develop an international transshipment port, together with industries, tourism and service sectors.

Shuji Hirose, Sumitomo’s deputy chairman said the government gave Sumitomo the green-light to proceed with the project and the corporation was completing a survey of technical and economic data.

The Van Phong port would play a crucial role in the entire complex’s development, he said and adding that global sea-port experts from marine giants would join hands in completing the project

Van Phong is close to international sea lanes to Europe-North Asia, Australia-South East Asia and North Asia, it is viewed as an international transshipment point as the 45,000-ha bay has an average depth of 20-22m and 6km-wide navigational passage

Shipments from southern China and ASEAN countries can transit there if shippers want to reduce shipping time and expenses

Van Phong is part of a broader plan to develop an economic zone in the central region, encompassing Chu Lai in Quang Nam Province, Dung Quat in Quang Ngai Province and Nhon Hoi in Quy Nhon city

A prime ministerial decision specifies that the Van Phong EZ covering 150,000ha of land and water surface in Van Phong bay will comprise two main sections, one of which would be customs-free

The customs-free section will be home to an international container port and a logistics facility, and commercial and financial centers

Meanwhile, ports for oil transshipment, industrial parks, resorts, and residential and administrative areas will be developed in the other section Sumitomo trades in steel, non-ferrous metals, electronics, machinery, farm products, chemicals, clothing, petroleum products, commodities and real estate, as well as provide financial services

The corp. has 30 projects licensed in Vietnam in such sectors as industrial parks, steel mills, power plants, telecoms, plastics, foodstuff, mechanical engineering, generating in $1.3 billion in turnover last yearVietnam would become the number one destination for Sumimoto’s investment with the Van Phong project, said Shuji Hirose, adding that Vietnam played a vital role in the company’s long-term investment orientation strategy

Many Japanese investors said major business opportunities exist in Vietnam due to a dynamic economy and an improved investment environment

Sumitomo is calling on other Japanese investors to join hands in investment into Van Phong EZ, he added