Hai Phong City: Investment Opportunities in Northern Vietnam

9:41:42 AM | 9/5/2017

Deep C Industrial Complex in Dinh Vu - Cat Hai Economic Zone recently cooperated with the Belgian-Luxembourg Chamber of Commerce in Vietnam (Beluxcham) to successfully organise a conference promoting investment in Hai Phong City, with the theme “Investment Opportunities in Northern Vietnam”. The event took place in Ho Chi Minh City.

Delivering opening remarks on prospects of investment attraction in northern Vietnam, Mr Pham Manh Hai, a representative of the Marine Project Management Bureau under the Ministry of Transport, said, there has been an turnaround in the development of northern Vietnam following the construction of new Lach Huyen International Gateway Port. To date, Hai Phong Port is limited at a depth of 7 metres, while the new Lach Huyen Port is capable of supporting ships with a draft of 14 metres or ships of 100,000 DWT docking at berth, thus helping reduce the time of transiting Singapore or Hong Kong ports and bring direct benefits to investors by shortening the time to launch products to the market.

Hans Kerstens, International Business Development Manager at Deep C Industrial Zone, said that in the last five years, the north has become the most popular investment destination for foreign companies. Almost US$60 billion has been invested in northern Vietnam since 2011, outperforming the south by nearly US$9 billion in the same period. One of important factors for investors to trust the north as a destination is industrial parks have ready infrastructure, strategic location, synchronous utilities and the best tax incentives in Vietnam that investors can enjoy.

Speaking of the position of Hai Phong City in northern Vietnam, Mr Do Trung Thoai, Director of Hai Phong Economic Zones’ Authority, said that, with the tireless efforts of the Party, authorities and people, Hai Phong City has built a synchronous, modern and superior infrastructure system. As the largest seaport city in northern Vietnam and the home to two among the largest industrial zones in the north, namely Vietnam - Singapore Industrial Park (VSIP) and Dinh Vu Industrial Zone, Hai Phong City has affirmed its increasingly important and strategic role in the eyes of investors. Particularly in recent times, with a series of synchronous and modern works built, or to be built, like Cat Bi International Airport, Hanoi - Hai Phong Expressway and Lach Huyen Port, Hai Phong City has quickly become an ideal destination for FDI investors. Mr Do Trung Thoai said that the city now has 486 FDI projects, including 232 projects worth US$13.95 billion in economic and industrial zones from 36 countries and territories, including many giant investors like LG Group (US$3.5 billion), Bridgestone (over US$1.2 billion), Knauf and Flat Glass. “The city reaffirms its positive support for investors by creating a smooth, fast, and friendly environment for investors. This move, together with its peculiar advantages and synchronised infrastructure system, is expected to be the magnet to draw billions of US dollars into Hai Phong City in the future,” he added.

Under the current plan, Hai Phong City has one economic zone, Dinh Vu - Cat Hai covering 22,540 ha, 19 industrial parks covering 9,112 ha, and 33 industrial clusters with a total area of 2,284 ha. Mr Hans Kerstens said Deep C Industrial Zone Complex (Dinh Vu Industrial Park - Deep C 1), Nam Dinh Vu 2 Industrial Park - Deep C 2 and Hai Phong International Gateway Port - Deep C 3) are located in Dinh Vu - Cat Hai Economic Zone, which is seen as a fine symbol of cooperation between Hai Phong - Vietnam and Belgium. Deep C 1 is the earliest and most successful infrastructure development project in northern Vietnam, as it has attracted many giant and important projects that create the impetus for the development of Hai Phong City in particular and the northern region in general. Thus, Deep C 1, Deep C 2 and Deep C 3 are expected to generate stunning successes for Deep C Industrial Zones and add colours and interests to the picture of investment attraction into Hai Phong City in the coming time.

Speaking of another investment appeal of Hai Phong City, Mr Vu Duy Mat, Deputy Director of the Cat Bi International Airport, said that Hai Phong City is a rare locality to have all five forms of traffic modes: Road, inland waterway, airway, railway and seaway. Beside its strengths in maritime route, Hai Phong City also catches the attention of investors with the availability of air flights. In 2016, Cat Bi International Airport officially started operation to form a major air traffic hub in northern Vietnam. He said, in 2016, the newly upgraded airport served over 1.8 million passengers (up 41.86 per cent over 2015) and 7,539 tonnes of cargo (up 17.97 per cent). In the first quarter of 2017, it carried 537,528 passengers (up 47.81 per cent year on year) and 2,398 tonnes of cargo (up 48.96 per cent). “The emergence of a second major airport (after Noi Bai International Airport) capable of transporting goods on international routes is an important factor to draw more electronics and telephone investors to Hai Phong City in particular, and the northern region in general,” Mat noted.

My Chau