The 110kV Ha Tien – Phu Quoc submarine power cable system has been inoperation for more than half a year now, marking the strong developmentand change in the socio-economic outlook of the island district, theVietnam Economic News reported.

Thanks to the national grid,instead of buying power from diesel generators at high prices, now dailyactivities of Phu Quoc islanders have been easier and investmentprojects in the island have also progressed more quickly.

Theowner of Khai Hoan fish-sauce making facility Ho Kim Lien, who has livedon the island for a long time, said although power prices only accountseven percent of her production structure, the trading activities havebecome more active since the island was connected to the national gridand she is considering to invest in hotel business there.

Powerprices of Kim Vang Hotel (30/4 Road, Duong Dong Town) have also reducedfrom 13 to 7 million VND a month. The manager of the hotel said shefeels relieved now thanks to the connection to the national grid.

Thedemand for power in other places like the Phu Quoc General Hospital –the only hospital on the island that is in charge of examining andtreating both local people and tourists is very high. Director of thePhu Quoc General Hospital said “Previously, we could not even rundiesel-fueled power generators as the power consumption was too high andit cost 200 million VND for power prices every month. Now the priceshave dropped more than 50 percent.”

The traffic infrastructureon Phu Quoc has received comprehensive investment, including theNorth-South axis, bypasses, an international airport and a passengerport. Therefore, connection to the national grid is expected to make apush to turn the island into a special economic and administrative zoneand a centre for trade exchanges of the country, the region and theworld.

Statistics of the Phu Quoc district People's Committeeshowed that, in 2013 it welcomed more than 500,000 tourists, of those 35percent were foreigners and the number this year is expected at 600,000as a direct airline route from Russia to Phu Quoc was opened andanother route from Incheon (the Republic of Korea) to Phu Quoc is aboutto be launched.

Many other projects are under promptimplementation on the island such as the Vingroup’s hotel complexproject in Bai Dai; the 120 room Sailing project in Cua Lap while somelocal hotels will expand and diversify their services. So far, nearly200 projects have been invested in Phu Quoc and mainly in tourismsector.

Deputy Chairman of Phu Quoc district People's CommitteeHuynh Quang Hung said connection to the national grid helped reduce50-70 percent of electricity costs than previous time, hotel charges andother services also decreased from 5-20 percent.

In the pasteight years, Phu Quoc’s economy has seen a strong development towardstourism and services, with average growth of 26 percent a year and percapita income of 82 million VND a year.-VNA