Northern Hai Phong City: Dynamic Growth

Clearly defining the role of economic development strategy, Hai Phong has been promoting its advantages to attract investment, to restructure economy, and to be active in the competitive market mechanism.

Hai Phong has adopted effective investment attraction policies. In addition to reviewing and building investment preference policies and mechanisms more fitting to new legislation and local characteristics, the city also focuses on accelerating public administration reform to quicken the completion of all administrative procedures. At the same time, the locality also builds thorough and consistent policies, and creates an environment favourable for investment, production and business activities.

 

Hai Phong attaches much importance to investing in infrastructure construction. Hai Phong international port, with total investment capital of US$1.74 billion, is capable of handling 100 million tonnes of cargo a year, and supporting ships of 50,000 DWTs and container ships of 6,000 TEUs. According to experts, this will be a major breakthrough for local economic development.

 

The transport system is being modernised to serve northern coastal provinces and the entire country. Typical routes include Hanoi - Hai Phong Highway; Hai Phong - Ha Noi - Lao Cai - Kunming (China) Railway and the national railway network.

 

The city is carrying out plans to open international flight routes from Cat Bi Airport to Incheon (South Korea), Taiwan, Hong Kong and Macau (China). The upgrading of the airport has been agreed in principle, making it one of four international airports in Vietnam and functioning as a backup airport for Noi Bai International Airport. The airport upgrade project costs US$100 million and will serve two million passengers and 17 million tonnes of cargo in 2015.

 

Hai Phong also concentrates on investing in industrial park infrastructure construction. At present, the city has planned 33 industrial parks, Dinh Vu - Cat Hai being the most notable with a total land area of 21,640 ha.

Thanks to sound investment policies and decisions, the city’s GDP growth was 10.96 percent in 2010. The industry - construction sectors expanded 10.5 percent; agriculture, forestry and fisheries sectors climbed 4.5 percent; and the service sector rose 12.46 percent, from 2009. Exports totalled US$1,954 million in 2010 and imports were worth US$1,980 million.

 

In 2010, Hai Phong mobilised VND32,177.4 billion from all available sources for investment development, up 19 percent from 2009. Foreign direct investment (FDI) capital reached US$150 million; foreign non-government organisations (six projects and a grant) offered US$1.4 million; and official development assistance (ODA) was VND606.26 billion, equal to the yearly plan. Basic investment projects are implemented in line with schedules and commitments.

 

In 2010, Hai Phong licensed 20 new projects with total registered investment capital of US$200 million, up 16.4 percent from 2009. According to the Department of Planning and Investment, at present, Hai Phong has 295 FDI projects with combined investment capital of US$4.33 billion. Foreign investors have disbursed half of their committed investment capital, indicating a significant improvement in investment environment.

The city considers 2011 the “Year of urban and social security.” Accordingly, Hai Phong will exert its resources to build infrastructure and urban areas, and attract investment capital for sustainable development.

The city continued investing in socioeconomic infrastructure construction. It will pay special attention to improving infrastructure in industrial parks, especially Dinh Vu - Cat Hai.

 

To improve the provincial competitiveness index, Hai Phong will adopt overall long-term solutions to improve the investment and business environment and create more favourable conditions for mobilising capital investment. Besides, the city will continue promoting administrative reform.

 

To ensure environmental issues, pursue sustainable development, and use raw materials economically, Hai Phong will actively reform investment promotion activities and target investors from developed areas like North America, the EU, Japan and South Korea. FDI capital should be channelled into more competitive fields like infrastructure construction (seafood, airport and port services), high tech, clean technology, energy, electronics and software.