Hai Phong Economic and Industrial Zones - Powerful Magnet for Investment Flows

11:52:15 AM | 12/11/2019

Based on local potential and advantages, combined with an open investment and business environment, Hai Phong City in general, and local economic and industrial zones in particular, have created strong appeal to domestic and foreign investors and corporations.

Breakthrough

Therefore, in the year to the end of September 2019, Hai Phong City-based economic and industrial zones attracted 46 new foreign direct investment (FDI) projects with total registered capital value of US$431.696 million and witnessed 39 FDI projects to increase their investment value of US$643.836 million; totaling US$1,075.532 million. The economic and industrial zones housed 355 FDI projects with US$14,590.453 million investment capital as of the end of September 2019. In 2019, Hai Phong City may draw US$1.4 billion, as it expected.

Meanwhile, economic and industrial zones attracted 25 domestic direct investment (DDI) projects with VND11,933.15 billion of registered capital and allowed nine existing DDI projects to add VND714.4 billion to their investment value, totaling VND12,647.55 billion from the beginning of the year to the end of September 2019. By the end of September 2019, economic and industrial zones accommodated 160 domestic investment projects with VND147,693.191 billion of investment capital.

Typical projects in Hai Phong City include the 348-ha Vinfast automobile manufacturing complex, invested with a total of VND70,337 billion by Vinfast Production and Trade Co., Ltd in Cat Hai Island in Dinh Vu Cat Hai Economic Zone; the US$2.5 billion LG Display Hai Phong project invested by LG Display Vietnam Hai Phong Co., Ltd on an area of 52.55 ha in Trang Due Industrial Park; the US$760 million Regina Miracle International Vietnam project invested by Regina Miracle International Vietnam Co., Ltd, covering 52.3 ha in VSIP Industrial Park; and the US$1.224 billion tire manufacturing project invested by Bridgestone Tire Manufacturing Vietnam Co., Ltd, covering 70.4 ha in Dinh Vu Industrial Park.

Continued expansion

Mr. Pham Van Moi, Director of Hai Phong Economic Zones Authority, said, according to the Prime Minister's Decision 06/2008/QD-TTg dated January 10, 2008, Dinh Vu - Cat Hai Economic Zone has a total area of 22,540 ha. To date, nine industrial zones and functional zones in Dinh Vu - Cat Hai Economic Zone have been approved of detailed plans, including Dinh Vu Industrial Park (541.46 ha), Non-tariff Area and Nam Dinh Vu Industrial Park or Zone 1 (1,329.1 ha), Nam Dinh Vu Industrial Park or Zone 2 (513.4 ha), Maritime Service and Industrial Park (132.7 ha), VSIP Urban, Industrial And Service Area (1,566.33 ha), Trang Cat Urban And Service Area (584.9 ha), Dinh Vu MP Industrial Park (234.1 ha), Trang Due Industrial Park (389.8 ha), and Hai Phong International Gateway Port Industrial Zone (497 ha).

In addition, four industrial zones with a total area of 767.777 ha outside Dinh Vu - Cat Hai Economic Zone already have permits for infrastructure construction and investment attraction, including Nomura Industrial Park (153 ha), Do Son Industrial Park (155.2 ha), Nam Cau Kien Industrial Park (263.47 ha) and An Duong Industrial Park (196.1 ha).

At the same time, based on the Prime Minister’s decisions approving the general construction planning for Dinh Vu - Cat Hai Industrial Park to 2025 (Decision 1438/QD-TTg dated October 3, 2012 and Official Letter 2628, Decision 1107 dated December 22, 2014 on adjustment to the industrial zone and attached wastewater treatment system development planning), Hai Phong City approved in principle six out of 10 industrial zones adopted by the Prime Minister.

Employment growth

Moi said, tenants in economic and industrial zones are doing profitable business and steadily increasing their labor force and incomes. Accordingly, to date, they have employed 130,500 Vietnamese workers and 3,140 foreign workers (an increase of 33 times compared to 2002). Most Vietnamese workers are aged between 18 and 27 and paid an average monthly salary of nearly VND8 million (nearly 8 times higher than in 2020). In addition to full-time employees working inside economic and industrial zones, they have also generated jobs for thousands of indirect workers working in transportation, accommodation and catering services.

They adhere to labor laws. Labor disputes tend to decrease, mainly small and uncomplicated cases. Fire and explosion prevention, food safety and hygiene are focused.

“Economic and industrial zones have helped train, foster and improve management, technical, foreign language and working skills for Vietnamese workers. By 2020, given that operational industrial zones are fully leased to tenants, plus newly established facilities, especially functional areas in the economic zone, the needed workforce will be expanded to over 400,000 people. In particular, the number of workers with good professional skills and good management skills will increase and worker incomes will be raised,” Moi said.