The central Quang Ngai Province proposed that it be removed from the list of high income provinces in order to receive more support from the government.
Workers at Dung Quat Oil Refinery
A letter was sent from provincial officials to Prime Minister Nguyen Tan Dung on August 19. The letter stated that, because Quang Ngai is located on the coast, it has suffered some of the heaviest damage from the wars. Not only is the province's infrastructure underdeveloped, it also faces the effects of frequent natural disasters.
In 2009, the construction of Dung Quat Oil Refinery made Quang Ngai rank 8th in terms of income. However, according to the law, most of the income from Dung Quat Refinery must be contributed to the state budget. Since then, financial support from the state has dwindled.
Le Quang Thich, vice chairman of Quang Ngai People's Committee, said their plans on economic-social development was encountering troubles with their limited budget. Due to the problems they face, authorities of Quang Ngai Province asked to be removed from the list of high-income provinces. They also asked to use the income from Dung Quat Refinery to invest in infrastructure for Dung Quat Industrial Park.
Even though Dung Quat is one of the top five most effective economic zones, the investment in this area is limited to around VND150 billion (USD7.1 million) a year. During this time, many enterprises have sought permission to invest billions of USD to their projects in this zone, which is the reason authorities gave for the urgency of the infrastructure upgrades. Otherwise, they stated, they may not be able to meet the demands of investors' development plans.
Thich said, "We asked the prime minister to use the income from Dung Quat for ground clearance, re-settlement areas and some necessary construction."
Last year, during his visit to Quang Ngai Province, Prime Minister Nguyen Tan Dung gave his approval to the idea of using income from Dung Quat Refinery towards development of infrastructure in key projects there.
