Industry: Driving Force behind Haiphong's Economic Growth

Industry: Driving Force behind Haiphong's Economic Growth

Haiphong's industry sector ranks 6^th in terms of production value in comparison to 64 provinces and cities nation-wide and is the driving force behind the economic growth of the city. The industrial sector contributes over 40 per cent to the city’s state budget, accounts for around 80 per cent of total export revenues and constitutes 60 per cent of employment in the city.

Haiphong's Industry Service was established on September 10, 1959. Initially, the Service had only seven affiliated enterprises and over 1,000 labourers. All equipment and technology used by the Service at that time was second-hand, left from the old regime before the revolution of August 1945. The management cadres of the industry were mostly those who changed their occupations from other sectors. Overcoming tough challenges, the city’s industry sector has progressively developed and achieved breakthroughs.

In the 1996-2004 period, many key products have received heavy investment and grown strongly. New businesses have appeared, such as the production of steel and construction steel, and manufacture of chemical wash products. Many traditional businesses were also invested in for expansion such as shipbuilding and cement production. Many enterprises producing consumer goods for local consumption and for export including footwear, garments and textiles and agricultural products developed strongly thanks to methodical and concentrated investment.

To date, Haiphong's industrial sector has developed 26 business branches, with an average growth rate of 22 per cent per annum. The city’s Industry Service was the first state body in the North and the third one in the country to deploy public administrative service management following the international standard ISO 9001-2000. The Service was honoured to receive noble emulation appellations from the Vietnamese Communist Party and from the State, including First, Second and Third Class Independent Medals and heroic labour appellations for both collectives and individuals.

Director of the Industrial Service Do Quang Thinh said "Achievement of consecutive growth of the sector over past years was attributed to great efforts by staff and workers who were always creative and looked for effective measures for the development of the sector. In the future, the city’s industry sector will focus on boosting spearhead branches of industry. The total production value of the city’s shipbuilding industry will account for 40-50 per cent of the total output value for the whole country. Total cement output will reach four million tonnes per year. The city will also invest simultaneously in the production of consumer products for local consumption and export, and in the chemical, electronic and IT industries for more positive results."

With its history of achievements, Haiphong Industrial Service plays an important role in fulfilling the target of making Haiphong a modern, civilised and industrial city - one of the biggest industrial hubs in the country.

• Thuy Tien