Focusing on Strongly Developing Industrial Parks

3:40:40 PM | 11/3/2022

Determined to promote investment attraction, especially in economic zones (EZs), industrial parks (IPs) as the driving force and lever for economic growth, in recent years, investment attraction activities, the development of EZs and IPs have always been paid special attention by Hai Phong city and obtained positive results. These have contributed to promoting production, creating jobs for laborers and generating budget revenue.

The VinFast automobile manufacturing factory of Vingroup  in Dinh Vu-Cat Hai Economic Zone, Hai Phong

Currently, in Hai Phong city, there are 01 Dinh Vu - Cat Hai EZ (with an area of 22,540 ha) and 25 planned IPs (with a total area of 12,702 ha); currently, there are 14 IPs that are implementing investment, construction and infrastructure business activities with a total area of 6,080.21 ha (09 IPs located in Dinh Vu - Cat Hai EZ and 05 IPs outside the EZ). By the end of 2021, the average occupancy rate of IPs were approximately 65% (when excluding the area of IPs being deployed, which had not attracted investment, the occupancy rate reached 94%).

Accumulated to July 2022, Hai Phong's IPs and EZs attracted 442 foreign direct investment (FDI) projects with a total investment capital of US$19,971.05 million, 02 times of capital contribution to buy shares with a capital of US$2,193.65 million and 194 domestic investment projects with a total capital of VND290,489 billion. The revenue in the first 7 months of the year was estimated at VND367,499 billion, the export reached US$12,699 million, contributing VND10,373 billion to the state budget. IPs and EZs created jobs for 189,861 workers, up 18.5% over the same period.

In particular, enterprises in IPs and EZs have initially formed diverse linkage chains. Investment attraction has shifted sharply from breadth to depth, focusing on attracting large-scale projects, using high technology, being environmentally friendly, and creating products with high added value. The typical examples include South Korea’s LG Group with 4 big projects (LG Display, LG Electronics, LG Innotek, LG Chem) with a total investment capital of nearly US$7.3 billion; Bridgestone Corporation (Japan) with an investment capital of US$1.224 billion; Regina Miracle (Hong Kong) US$0.9 billion; Flat (Hong Kong) US$225 million; USI (Hong Kong) US$200 million; and Pegatron (Hong Kong).

Mr. Le Trung Kien, Head of Hai Phong EZ Authority, said that the Resolution of the 16th Party Congress of Hai Phong city had identified 3 pillars of economic development including: High-tech industry, seaport - logistics and tourism - trade. In particular, the industry will be restructured in the direction of focusing on developing key industries such as: Automobile industry, machine manufacturing, electronics-informatics and high-tech industrial products.

In the period of 2020-2025, Hai Phong city will build 15 new IPs with a total area of over 6,200ha, in the immediate future, the city will focus on implementing administrative procedures to establish 6 new IPs with a total area of 2,758 ha including: Xuan Cau IP, Nam Trang Cat IP, Thuy Nguyen IP, Tien Thanh IP, extended Trang Due IP, and Giang Bien 2 IP.

In addition to 2 projects of Xuan Cau and Tien Thanh IPs which were granted investment registration certificates, the remaining projects have submitted dossiers of application for approval of investment policies. Besides, Hai Phong has 7 projects that are completing the implementation processes and procedures, with a total area of more than 3,100 ha.

With the goal of attracting about US$15 billion of FDI, the city is urgently implementing the necessary work to accelerate the progress of new IPs, of which the focus is Tien Thanh IP with a scale of 410.46ha. It is expected that Tien Thanh IP will strive to start construction right in 2022, soon create a ground to attract secondary investors, and promote the development of local industries and services.

In the coming time, Hai Phong EZ Authority will continue to innovate and reform administrative procedures in the direction of "centralized one-stop shop", simplifying and shortening implementation time; strongly applying information technology, digital transformation; supporting businesses to solve difficulties and problems, especially labor, electricity, water and essential services.

Additionally, it will enhance investment promotion, focusing on on-the-spot investment promotion, online investment; attracting large projects with high technology, in which, attracting FDI in four major directions: quality, efficiency, sustainable development, and commitment to technology transfer.

In addition, in order to continue to promote the city's advantages and strengthen its role as a gateway, the EZ Authority also wishes to receive the attention and support of the city, the Government, ministries and Central sectors in order to speed up the approval of the construction of IPs and support investment attraction promotion. At the same time, it is important to soon consider and submit to the National Assembly for approving the Law on Management of IPs and EZs to ensure a stable legal environment and improve the effectiveness and efficiency of state management of IPs and EZs.

"Thus, these would ‘create a nest to welcome eagles’ and effectively contribute to realizing the city's development aspirations in the spirit of the Resolution 45 of the Politburo; the Resolution of the 16th Party Congress of the City Party Committee", said Mr. Le Trung Kien.

Manh Dung (Vietnam Business Forum)