Breakthroughs from Industry and Green Energy

9:28:26 AM | 17/6/2024

Hai Phong City has always led the country in investment attraction, especially FDI flows, and typically formed new industrial products and green industries. We have an interview on this with Mr. Nguyen Van Thanh, Director of the Hai Phong Department of Industry and Trade.

Could you please tell us about outstanding results of the Department of Industry and Trade after five years of executing Resolution 45-NQ/TW of the Politburo dated January 24, 2019 on Hai Phong construction and development to 2030, with a vision to 2045?

In 2019 - 2023, Hai Phong City carried out the Socioeconomic Development Plan amid the complicated COVID-19 epidemic outbreak. The industry and trade sector has endeavored and seriously implemented the resolutions of the Party at all levels, the resolutions and programs of the Government, the City Party Committee, and the guiding documents of the Ministry of Industry and Trade and the City People's Committee on local economic development, especially industry. This effort importantly enabled the sector to effectively achieve the "dual goal" of epidemic prevention and socioeconomic recovery and development.

Hai Phong is proudly one of the largest destinations of FDI flows in the country. Many large-scale projects in the city are linked to global product chains operated by giant global multinational firms such as LG Corporation of South Korea (investing over US$8.2 billion), Bridgestone Corporation of Japan (US$1.22 billion), Regina Miracle Group of Hong Kong (US$1 billion), and Pegatron Corporation of Taiwan (US$800 million). Industrial GRDP accounts for over 48% of the city's GRDP. The Index of Industrial Production (IIP) rose by an average of 16.85% a year, thus reaffirming its role as a driving force in the city's economic growth (the city's IIP growth rate always ranks among the top in the country).

Hai Phong industry has formed new, innovative industrial products in green manufacturing industry, especially Vinfast Company's project of manufacturing environmentally friendly electric cars and electric buses, exported to the United States and North American markets for the first time, the move that has made the name of the Vietnamese national automobile brand.

The quality of industrial growth continues to improve. The industry has been positively restructured, with the processing and manufacturing sector in the city’s GRDP rising from 37.38% in 2019 to 45% in 2023. The share of high-tech industrial products in the processing and manufacturing sector climbed from 44.2% in 2019 to 60.6% in 2023.

Industrial infrastructure has been constructed and developed (seven more industrial complexes with a total area of 299.61 ha and two centralized industrial parks with a combined area of 1,162 ha were established). Commercial infrastructure has been developed and modernized (four more supermarkets and one new commercial center came into operation).

Total retail revenue of consumer goods and services climbed 11.57% on average a year (ranked 5th in the country by value). Commercial activities are operated by market laws.

The Department of Industry and Trade has advised the city to develop renewable energy, specifically offshore wind power. What are the results of this effort?

Before Power Plan 8 was approved, the Department of Industry and Trade advised the City People's Committee to propose to the Prime Minister and the Ministry of Industry and Trade to consider adding five offshore wind power projects to with a total capacity of 16,200MW to Power Plan 8, including 9,100MW will be developed by 2030.

Hai Phong city’s leaders provide direct, insightful responses to inquiries raised by import-export enterprises

After Power Plan 8 was approved by the Prime Minister, the Department of Industry and Trade continued to advise the Hai Phong People's Committee to ask the Ministry of Industry and Trade to consider prioritizing the inclusion of local offshore wind power projects in the draft action program for Power Plan 8 to lay the foundation for local implementation.

In addition, the department has coordinated with the Department of Planning and Investment and relevant agencies to update power source projects, transformer stations and power lines according to the list of projects stated in Power Plan 8 into Hai Phong Master Plan for the 2021-2030 period, with a vision to 2050 (approved by the Prime Minister in Decision 1516/QD-TTg dated December 2, 2023).

In 2023, Hai Phong City's export value rose 30.48% to US$31 billion, ranked fourth in the country. Logistics service growth was over 20% a year on average. Its contributions to the city's GRDP was 13-15% a year.

At the same time, the department has worked with the Department of Natural Resources and Environment, the Department of Planning and Investment, the People's Committees of Bach Long Vi and Cat Hai districts and related bodies to guide businesses to conduct wind measurement surveys within six nautical miles under the city's jurisdiction for companies to establish their projects (like Trung Nam Construction Investment Joint Stock Company and Bitexco Energy Joint Stock Company).

Based on current laws, decisions and plans issued by Hai Phong City, the Department of Industry and Trade will cooperate with relevant bodies to counsel the city to issue written directives and instructions to facilitate businesses seeking to invest in renewable energy (including offshore wind power), helping economize resources, protect the environment, reduce greenhouse gas emissions, and move towards the net zero goal by 2050 as expected by the Government of Vietnam.

Thank you so much!

Ha Thanh (Vietnam Business Forum)