High-quality FDI Leverage for Hai Phong's Rapid Development

From a port city once based mainly on a few traditional industries, Hai Phong has, 70 years after liberation, transformed into a thriving high-tech hub, a key growth engine for both the northern region and for the nation at large. The city is pushing forward its efforts to attract high-quality investment, aiming to increase the investment flow and create a modern industrial ecosystem where technology functions as the long-term driver of development.

Our reporter has an exclusive interview on this issue with Mr. Nguyen Ngoc Tu, Director of the Hai Phong Department of Finance.

How do you assess Hai Phong's 35-year effort to draw foreign direct investment (FDI), particularly since the first project was licensed in 1989?

The first FDI project was licensed in Hai Phong in 1989. Since then, and especially over the past decade, Hai Phong has consistently ranked among the Top 5 biggest destinations for FDI flows in the country. The city has become a key terminus for multinational corporations, particularly from Japan, South Korea, Taiwan (China), the United States and Europe.

As of the end of the first quarter of 2025, Hai Phong was home to a total of 1,052 FDI projects with a combined registered capital of US$34.51 billion, invested by investors from 40 countries and territories. Among these are many giant high-tech projects with significant added value invested by LG, Pegatron, Fuji Xerox, Bridgestone, GE and Deep C. The city has taken the lead in the number of projects and seen a marked improvement in project quality, with the funds increasingly centered on electronics, supporting industries, green manufacturing, logistics, industrial park infrastructure and high-quality services.

Hai Phong authorities receive Japanese Ambassador Ito Naoki

There are three key factors behind this success.

The first is bold and decisive leadership. Hai Phong has consistently been at the forefront of reform efforts, demonstrating a strong willingness to make changes and take action, create breakthroughs in infrastructure development, institutional reform and investor engagement.

Increasingly synchronized transport and industrial infrastructure, deepwater seaports capable of accommodating large vessels and serving multiple international shipping routes, an expanding expressway network, an international airport, and high-quality industrial parks such as Deep C and VSIP are creating 'hard assets' which are becoming powerful magnets to investors.

Strong government support and bold administrative reforms are also important. The city remains committed to building a transparent, business-friendly investment environment and providing sustained support for long-term business development.

Hai Phong takes pride in its 35-year journey and looks ahead with confidence as it aspires to become a “second Singapore”, an international hub for industry, logistics, services and innovation. In this prospect, FDI will continue to act as a key driver for the city to advance on this journey.

Alongside attracting FDI, Hai Phong is also working hard to accelerate public investment disbursement. Could you elaborate on the significance and objectives of this initiative, and how the Department of Finance is contributing to driving this process forward?

Since the start of 2025, the Standing Board of the Hai Phong Party Committee and the Hai Phong People's Committee assigned tasks to relevant agencies, sectors, project investors and localities to complete the public investment disbursement plan.

In this regard, the Department of Finance has been performing various tasks and solutions, such as managing State budget estimates for 2025 in order to achieve and exceed the targets assigned by the Hai Phong People's Council; enhancing efforts to combat budget revenue losses; and promoting business connectivity, fostering stronger ties between State-owned enterprises (SOEs), private businesses and foreign-invested companies.

In addition, the department advises relevant authorities to establish task forces and regularly organize meetings to monitor and accelerate budget disbursement, address any difficulties or obstacles to resolve emerging and outstanding issues. The agency also puts forth recommendations on reallocating funding plans from capital-unneeded investors or projects to capital-needed ones within the year.

The agency requires relevant agencies to make monthly reports on implementation status, project deployment, disbursement progress and other information to competent authorities for consideration, integration and direction.

Secretary of Hai Phong City Party Committee Le Tien Chau and other leaders pay a working visit to LG's factory in Trang Due Industrial Park

The Hai Phong Planning for the 2021-2030 period, with a vision to 2050, has opened up numerous breakthrough opportunities but it also demands better investment promotion, greener business development and more potential FDI inflow. How is the Department of Finance working to realize these key goals and tasks?

Green growth has long been a major goal set by Hai Phong City, and it is now being pursued in a methodical, persistent and scientific manner. As an advisory body for socioeconomic development, planning, investment, finance and State budget, the Department of Finance is actively carrying out a set of comprehensive solutions to successfully attract “high-quality, environmentally friendly, and sustainable” investment projects.

One key initiative involves developing a list of priority projects to call for investment, aligned with regional and sectoral planning - especially in strategic infrastructure such as transportation, energy, seaports, industrial zones and high-tech parks. This project list will be digitized and integrated into investment promotion platforms to make it more accessible to potential investors.

Reforming investment promotion efforts, the department consistently aligns with the direction of central and local governments, focusing on selective investment attraction based on clear criteria: green, clean low-impact industries, with a priority on high-tech and semiconductor technologies, projects capable of being integrated into global supply chains, and investors with advanced, eco-friendly technologies that contribute to digital transformation, energy transition, green industry and circular economy. At the same time, the department is strengthening international cooperation by working directly with embassies in Vietnam, major global corporations and investment promotion agencies from Japan, South Korea, Singapore, Europe and other markets.

The department continuously reforms and simplifies administrative procedures, with a focus on transparency and modernization, aiming to reduce costs, ensure fairness and create favorable conditions for businesses

Moreover, efforts are being strengthened to monitor and measure the quality of FDI projects. The department works closely with relevant sectors to review, screen and assess investment efficiency to make sure that projects operate in line with their commitments, promote sustainable development, protect the environment, and generate positive spillover effects for the local economy.

The Department of Finance advised on making a resolution accompanied with the proposal of the Standing Board of the Hai Phong Party Committee on Hai Phong SME support, aiming to enhance their competitiveness and capacity to participate in global value chains in 2025-2030, with a vision to 2045. Besides, the department proposed solutions to support small and medium-sized enterprises (SMEs), foster stronger collaboration and connection between domestic and foreign companies, and contribute to building an independent, self-reliant and sustainable economy.

Regarding digital transformation, the department developed and launched the Digital Map Model using 360-degree virtual reality technology for Bac Song Cam Urban Area. This enables investors and businesses to access comprehensive visuals and detailed information about all related projects. Furthermore, the department is piloting 360-degree mapping for Tien Cuong 2 Industrial Complex and Giang Bien Industrial Complex.

These efforts not only help attract substantial foreign investment but more importantly, high-quality capital aligned with green, rapid and sustainable development goals.

As the city’s key agency for business support, the Department of Finance has studied and advised the municipal government on issuing various business facilitation and assistance policies.

Carrying out Decree No. 80/2021/ND-CP dated August 26, 2021, which provides detailed regulations and guidance for the Law on SME Support, the Department of Finance advised the Hai Phong People’s Committee to issue two key plans: Plan No. 95/KH-UBND dated April 12, 2022 on Hai Phong SME support in 2022-2025 and Plan No. 83/KH-UBND dated April 5, 2024 on local SME support in digital transformation and integration into industry clusters and value chains in 2024-2029.

The department also works closely with the city to support businesses in streamlining administrative procedures and helping reduce costs and travel time. This includes promoting digital transformation, offering online responses through artificial intelligence (AI)-powered platforms and other solutions.

Furthermore, the department regularly supports human resource development through training programs on business startup and corporate governance while also focusing on infrastructure development and promoting seaport digitalization.

To promote key sectors such as seaports and industry, Hai Phong City has collaborated with telecom firms to deploy 5G connectivity at Tan Vu and Dinh Vu ports and launched the country's first dedicated 5G network for smart factories at Pegatron Company (located in DEEP C Hai Phong II Industrial Zones). The application of “Make in Vietnam” digital technology solutions and seaport digital transformation platforms has significantly advanced the city's digitalization and maximized convenience for businesses. These enable customers to plan and manage production accurately while improving productivity and operational efficiency for ports, partners and clients alike.

Hai Phong is entering a new phase with fresh stature, momentum and determination. A consistent message conveyed is the city’s strong commitment to creating the most favorable conditions, standing side by side with businesses, and promptly and decisively addressing all challenges or obstacles they face.

These efforts aim to accelerate the realization of the Vision 2045 set out in Resolution No. 45 of the Politburo: Hai Phong will become a highly developed city and a leading city in Asia and the world as expected by General Secretary To Lam and Hai Phong people.

Thank you very much!

Ha Thanh  (Vietnam Business Forum)