Hai Phong's Economic Restructuring through FDI

According to the Foreign Investment Agency of the Ministry of Planning and Investment, in 2013, Hai Phong is ranked 3rd in the country in attracting FDI, with a total of the newly registered capital of US$2,612 million, only after Thai Nguyen with a total of newly registered capital of US$3.4 billion and Thanh Hoa with US$2,921 million.

Generally speaking, the most important FDI project in Hai Phong in 2013 is known as the project of LG Group (Korea). On September 10, 2013, the People's Committee of Hai Phong held a ceremony granting the investment certificates to the LG Electronics Inc. (LGE) in Trang Due Industrial Zone under the Dinh Vu Economical Zone in Cat Hai, Hai Phong for their investment in building the manufacturing factory to assemble the electronics and high tech products. The project has a total investment of US$1.5 billion. When the factory is put into operation, it will supply 500 containers of products in the market.

 

The second important FDI project in Hai Phong is an increasing capital for the Bridgestone project of the Japanese investor. In 2012, the leading tire manufacturer of Japan invested US$574.8 million for the tire production project in Dinh Vu Industrial Zone. By mid-November in 2013, the tire manufacturer of Japan received the investment certificates to adjust the capital from US$574.8 millions to US$1.22 billion. According to Mr Duong Anh Dien, Chairman of Hai Phong Municipal People’s Committee, ​​the decision to increase the capital will enable the Bridgestone plant to produce 49,000 tires per day. These FDI projects are expected to make important contribution to the economic restructuring of Hai Phong. Accordingly, from 2014 to upcoming years, although the industrial production remains its important role in the economic structure in Hai Phong, it has been replaced by the service sector as the new flagship based on the guidelines and direction of the Politburo.

 

In the coming years, Hai Phong will focus on developing its strength in some specific sectors such as seaports, airports, tourism, maritime and shipping, logistics, finance, and import and export. Since 2013, Hai Phong has been launching many important infrastructure projects. The significant project, which is to construct the Lach Huyen port of Cat Hai district, known as the international gateway, has been started since April 14, 2013. With a depth of 14 metres, the Lach Huyen port has capability of receiving vessels of up to 100,000 tonnes. This is one of two international gateway ports of the country in the development plan of Vietnam's seaport system in 2020 and orientations to 2030, which was approved by the Prime Minister in Decision 2190/QD- dated December 24, 2009; the second international gateway port is Ba Ria-Vung Tau.

 

In March, 2013, Hai Phong started the expansion of the Cat Bi International airport. The expansion work is expected to be completed in 2015, and the Cat Bi International Airport will then reach modern standards of 4E level, ensuring that some large aircraft like Boieng 777, 747, 767, and Airbus 321 or equivalent to land safely.

 

In addition to the passenger transport, the Cat Bi International Airport is designed to transport cargo. According to Duong Anh Dien, under the planning of the People's Committee of Hai Phong, there will be a suitable land for the construction of the warehouse at the airport. Besides the two major transport projects in 2014, the Customs Department will continue to actively accelerate the project of building new highway No.5.

 

With a modern and comprehensive transportation system of road, sea lines, airlines, and railways, Hai Phong expects to become a city of service, which helps empower and create impacts of Hai Phong on the socio-economic life of the country.