Hai Phong City Improving Business Investment Environment, Attracting Resources for Socioeconomic Development

Resolution 45 of the Politburo on Hai Phong City construction and development to 2030, with a vision to 2045, clearly states the position and importance of Hai Phong City in the cause of national construction and development. Hai Phong is not only a growth engine of the north, but also a driving force for economic development of the north and the whole country, a center of international trade and economic integration.

The city worked out the orientation for socioeconomic development to 2020 to carry out the Politburo’s Resolution 45-NQ/TW dated January 24, 2019; the Prime Minister’s Decision 821/QD-TTg dated July 6, 2018 approving adjustment to Hai Phong City Socioeconomic Development Master Plan to 2025, with a vision to 2030; and the Resolution of the 15th City Party Committee. Accordingly, one of the solutions continuing to be executed by the city is improving the investment and business environment, attracting resources for socioeconomic development, and creating strong growth momentum for years to come.

Practical action and solutions

In the first eight months of 2019, the city’s political and social context remained stable; national defense and security, social order and safety were guaranteed; and the pace of socioeconomic development was strong and impressive. Many socioeconomic development targets were high relative to the same period of 2018. Regarding economic development, many economic indicators fared well from a year ago. In particular, three indicators increased by over 20% from a year-ago period: The index of Industrial Production (IIP) rose 23.77% year on year in the eight-month period, nearly 2.5 times higher than the national average growth of 9.5%. The fiscal revenue was estimated at VND57,099.46 billion (US$2.5 billion), up 31.5% year on year. New companies registered to invest estimated VND 14,788.37 billion (US$645 million), up 21% year on year. Five indicators expanded by 10-20% over the same period of 2018. Total retail sales of consumer goods and services were projected to rise by 14.72%. Cargo throughput increased 13.88% year on year to 79.29 million tons. Passenger carriage grew by 15.27% by passenger count and by 12.26% for distance count. Cargo carriage climbed 13.95% by tonnage and 2.59% by distance. Tourist arrivals to Hai Phong City were forecast at 5.91 million, up 15%, including 657,800 international visitors, 17.8% higher than a year ago. Total deposit mobilized was projected at VND200.11 trillion (US$6.7 billion) as of the end of August, representing a year on year growth of 12.24% while outstanding loans totaled VND112.47 trillion (US$4.9 billion), up 13.07% year on year. That is the basis for the city to beat socioeconomic targets in 2019 and beyond.

The city continued to focus on improving the investment and business environment and attracting many large businesses to carry out investment projects in the locality. The Vinfast automobile manufacturing complex went into operation in June 2019. Many major industrial production projects were launched in VSIP and An Duong industrial parks and Cat Hai Island.

Major infrastructure continued to be built in the city. Many big infrastructure projects were completed, including Tan Vu - Lach Huyen Bridge that reaches from the mainland to Cat Hai Island, Bach Dang Bridge that links Hai Phong with Quang Ninh, expanded Road 10, Dang Bridge, Han Bridge, and Nguyen Binh Khiem Flyover Bridge. The city is speeding up the construction of a bridge over the Hoa River and a trunk road from Nguyen Van Linh Intersection to Cho Con Crossroad.

To improve the business investment climate and enhance business competitiveness, Hai Phong City adopted many consistent solutions in the past years. The city kept strong innovations and improved administration quality. The city leaders directly chair monthly dialogue meetings with businesses to better grasp and solve their recommendations, assign municipal departments, branches and localities to answer their questions and recommendations within the given jurisdiction. The city further decentralizes power linked with responsibility assigned to agency leaders.

In four straight years from 2016 to 2019, Hai Phong City implemented the theme of “Improving the investment and business environment” and at the same time, issued many important documents to make the local investment and business climate more attractive in the eyes of investors.

Every year, the city fixes the list of projects and allocates State budget for key projects, especially infrastructure works crucial to local and regional socioeconomic development. Hai Phong City attracts and effectively uses ODA capital and foreign concessional loans for infrastructure development.

Furthermore, Hai Phong City has stepped up administrative reform, built e-government, and increased the delivery rate of public administrative services tagged Level 3 and Level 4. The city completed provided Level 4 online public services as guided in the Prime Minister’s Decision 846/QD-TTg dated June 9, 2017. To date, the city has launched 59 Level 4 public services. In 2019, it is expected to deploy 27 public services of this kind.

Building the image of attractive and dynamic city

The year 2020 is a watershed as it is the last year to implement the five-year Hai Phong socioeconomic development plan from 2016 to 2020, the Resolution of the 16th City Party Congress. Party congresses at all levels will also launched in the year, particularly 16th City Party Congress - a step to move towards the 13th National Party Congress.

The overall objective of Hai Phong City to 2020 is to maintain growth momentum linked to effective and substantive implementation of strategic breakthroughs, economic restructuring and growth pattern changes, and improved productivity, quality, efficiency and economic competitiveness. The city will continue to ameliorate an open and favorable medium for investment, production and business activity, mobilize all resources, increase budget revenue, drastically implement key projects; and achieve GRDP growth of 16.5% in 2020. The city will develop economy together with education and training of high-quality human resources; accelerate application of scientific and technological advances, promote innovation, creativity and startup; comprehensively and synchronously develop cultural and social fields, improve the material and spiritual life of the people. Hai Phong eyes to build the image of an attractive and dynamic city in the eyes of investors; expand regional connectivity, and improve external relations and international integration.

For enterprise development, the city focuses on improving the quality and performance in the private business sector, sharpening the competitiveness, sustainability and resilience of local enterprises, building and developing powerful private business entities which can compete on domestic and foreign markets, and making many businesses qualified for joining regional and global value chains. By 2020, the city will have over 33,000 active businesses.

With respect to the Provincial Competitiveness Index (PCI), Hai Phong City will make every effort to stand among best performers of economic management and achieve a PCI score of over 65 points to be grouped in the Top 10. It will increase the score of 10 PCI component sub-indices and deal with four declining sub-indices in 2018: Market entry, informal charges, fair competition, and labor training.

To achieve the above goals, in the coming time, Hai Phong City will focus on the following solutions to improve the business investment environment:

- Keeping regular track of current projects to have the best solutions to emerging problems, especially large ones that strongly impacts driving forces of local economic restructuring; simplifying and publicizing administrative procedures; creating a favorable business and investment environment, encouraging startups, promoting business freedom, and mobilizing all resources for socioeconomic development.

- Firmly carrying out the Plan for PCI Improvement in 2019-2020 to raise the city’s PCI rankings.

- Executing Plan 230/KH-UBND dated November 3, 2017 on supporting local small and medium-sized enterprises to 2020; promoting the implementation of Level 3 and Level 4 online public services as stated in the Prime Minister’s Decision 846/QD-TTg dated June 9, 2017; effectively enforcing the Government's resolutions on business environment improvement and business development support.

- Courting more businesses to invest in the city, drawing more FDI funds from Japan, South Korea and other developed economies; facilitating domestic enterprises to invest in Hai Phong.

- Accelerating the equitization and restructuring of state-owned enterprises in 2019-2020 as guided by the Prime Minister.

Nguyen Van Tung
Chairman of Hai Phong City People’s Committee