Haiphong Actively Improves Investment Environment

3:26:23 PM | 7/8/2005

Located at the heart of the northern coastal region and being the main ocean gateway of the northern provinces, Haiphong is considered a major seaport for the transport and circulation of goods to the northern provinces of Vietnam as well as to foreign countries. In particular, Haiphong is rich in tourism and aquaculture potential, two major advantages of the local economy.

From now to 2020, the city will focus on developing Haiphong as a modern city and a key commercial and industrial centre. It will be the centre for service, tourism, seafood, education and healthcare of the whole North region. Haiphong will also be a key player in the seaport industry, and will act as a driving force in the path towards modernisation and industrialisation of the country.

In order to fulfil the responsibilities outlined in Resolution No.32 NQ/TW, Haiphong has attracted flows of foreign capital and investors and companies from other provinces of Vietnam.

In 2001, themed as the “systems year” of the city, authorities developed many positive policies in order to encourage and create favourable conditions for enterprises, and improve the socio-economic conditions of the whole city. At the end of 2001, the city had created more than 30 systems solving matters of land compensation, customs formalities and incentives for investment.

In 2002, the “business year” of the city, authorities created many favourable open conditions for enterprises to invest further after the initial establishment of their business.

The progress of re-structuring economy and business was escalated at the right time, and the positive effects of that move are evident. In 2003, the “business and integration year”, the city helped enterprises to actively participate in the process of international economic integration to open their markets, mobilise more capital, upgrade their technology, increase their competitiveness and gain advanced management expertise.

This year is named the “principles and effect year”. The purpose of this year is to make a positive change in the awareness and productivity of personnel in the city’s organisations and authorities. They will be trained to enact the law, decrees and regulations in a way which better serves the city’s aims.

In general, the attraction of investment capital in Haiphong has proceeded relatively well. The growth rate of investment capitals is around 12 – 15 per cent per annum, which is higher than the growth of GDP. In 2003, the city mobilised more than VND7,500 billion (US$477.8 million) for development investment. The foreign direct investment capital in 2003 was US$149.09 million in 42 projects. The capital increase rate was 175 per cent and the project increase rate was 365 per cent when compared with 2002.

In the first seven months of 2004, there have been ten new foreign direct investment projects and six capital adjustment projects, with total capital of nearly US$186 million, 75 per cent higher than the same period in 2003. As at July 2004, there were 163 foreign direct investment projects operating in Haiphong. Those projects come from 25 countries and territories around the world, with total capital of US$1.677 billion. Foreign direct investment operating capital accounted for 63 per cent of the registered capital.

During the same period the city has attracted several domestic investment projects, such as: DAP fertilizer manufacturing plant of Vietnam Chemical Corporation, with invested capital of US$172 million; Haiphong 600 MW temperature electric plant of Haiphong Temperature Electric joint stock company, with invested capital of more than US$640 million; a ship manufacture and upgrade plant of Vietnam Ship Corporation and many other projects in the fields of urban development, service and recreation, golf courses and entertainment zones which are in progress. According to Resolution No.32 NQ/TW of the Politics Office, in the future, the city will mobilise a sum of more than VND10,000 billion (US$660 million) for development investment. Therefore, the city needs to strengthen and improve the investment environment in order to attract further investment capital.

The main objectives of this direction are: continue administrative reform; create favourable conditions for technology, operating systems and regulations; encourage enterprise with favourable policies; actively speed the process of international economic integration in order to aid Haiphong’s sustainable development.

During recent years, the city has launched promotional activities such as a website for investment information; an English version of investment potential and guidelines; films promoting the advantages of Haiphong. The city also has regularly held meetings and conferences with delegates from many countries such as the US, Germany, Russia, the Czech Republic, Japan, South Korea and Taiwan. The city also meetings and showcases the prospects and advantages of the province in big cities such as Ho Chi Minh City and Danang City. To assist existing enterprises, the city regularly holds meetings and makes contact with investors and enterprise to hear their opinions and ideas in order to help them overcome the business challenges they face, with the spirit “enterprise success is the city’s success”

With these well developed, creative and realistic solutions, Haiphong city is set to successfully fulfil Resolution No.32 NQ/TW of the Politics Office to become a leading city in the path towards modernisation and industrialisation, deserving the title of First-class modern city.