Hai Phong city attracts $3 bln of FDI in Jan-Sep

By Do Hoang, Tri Duc
Tue, October 3, 2023 | 3:18 pm GMT+7

Vietnam’s northern city of Hai Phong attracted over $3 billion of foreign direct investment (FDI) in the first nine months of 2023, becoming one of the top FDI locations in the country.

Speaking to The Investor, Le Trung Kien, head of the Hai Phong Economic Zone Authority (HEZA), attributed the city’s achievements to its improved logistics infrastructure, land availability, and investment environment, in addition to the city’s strategic location.

Hai Phong seaport in Hai Phong city, northern Vietnam. Photo courtesy of Vietnam News Agency.

Hai Phong seaport in Hai Phong city, northern Vietnam. Photo courtesy of Vietnam News Agency.

Logistics infrastructure

Logistics development in Hai Phong has been a priority for the government and local authorities. Investments in international seaports, expressways and an airport have led to breakthroughs in the city’s transport infrastructure. For example, three new bridges on the Dinh Vu-Nguyen Binh Khiem-Nguyen Van Linh route have solved congestion for containers trucks on the route connecting Hai Phong’s seaports to the country’s expressways.

Investments in roads such as the Hanoi-Hai Phong Expressway, Hai Phong-Ha Long Expressway linking Hai Phong and the northern province of Quang Ninh, and roads to the neighboring provinces of Thai Binh and Hai Duong have also made a difference. Besides, the coastal city is pushing ahead with ring road projects to ensure the smooth transport of goods in and out of its seaports.

Regarding aviation, Cat Bi International Airport has been upgraded to welcome four million passengers a year, while a project to build a second terminal is set to start soon. On the maritime front, Hai Phong has already opened wharves No. 1 and 2 and is building wharves No. 3, 4, 5, 6 for the Lach Huyen deep-water seaport in a bid to become the transportation hub for Vietnam’s northern region.

Transportation infrastructure inevitably boosts socioeconomic growth, and Hai Phong is focusing on developing seaports and building logistics networks and industrial parks to accommodate the ports, Kien said. This has resulted in major global firms investing in the city, he added.

Land availability

Hai Phong’s first industrial park, now known as Japan-Hai Phong Industrial Park, was invested in 1994. Since then, the city has developed 14 industrial parks over 6,100 hectares and the Dinh Vu-Cat Hai Economic Zone covering 22,540 hectares. The occupation ratio at these industrial parks has only reached 63.8%, so land is always available for investors, Kien affirmed.

As of the end of August, industrial parks and economic zone in Hai Phong had attracted investments of $36.32 billion, including $22.39 billion from 473 FDI projects and $13.93 billion in domestic investments, according to the HEZA. Notable ones are $9.24 billion invested by South Korean tech giant LG, $7.6 billion by domestic automaker VinFast, $1.22 billion by tiremaker Bridgestone, and $900 million by tech giant Pegatron.

Thanks to these major projects, Hai Phong has attracted smaller ones to join the ecosystems of these mega investors, the HEZA highlighted.

Investment promotion

While investment incentives are offered in line with the country’s legal framework, Hai Phong’s strengths are its heavily-invested infrastructure, smooth investment environment, and strong workforce with investments in vocational training and affordable housing for workers, Kien noted.

Hai Phong is also offering investment promotions, such as on-site promotions in cooperation with industrial park leadership and foreign events. For example, in June, Le Tien Chau, chief of Hai Phong's Party Committee, joined Hai Phong’s investment promotions in South Korea and Japan. At the events, Chau affirmed the city would prioritize investments in high-tech and smart industries, the maritime economy, clean energy, semi-conductors, and others.

Thanks to the city’s efforts, LG Innotek, the electronic component arm under LG, made a commitment to invest an additional $1 billion in the city, doubling its investment in the northern coastal city to $2.05 billion.

Then in September, Hai Phong granted investment certificates to 11 foreign and domestic direct investment projects with total registered capital of $961 million. The biggest one is a $500-million project invested by South Korea’s SK Group. The high-tech biodegradable material factory, called Ecovance, will cover 3.2 hectares in Deep C Hai Phong Industrial Park, within Dinh Vu-Cat Hai Economic Zone.

Comments (0)
  • Read More
Vietnam becomes Australia’s fastest-growing inbound market

Vietnam becomes Australia’s fastest-growing inbound market

The number of Vietnamese tourists to Australia has grown significantly after the Covid-19 pandemic, with nearly 178,000 reported in the 12 months to August 2024, according to a Friday press release by the Australian Minister for Trade and Tourism’s Office.

Southeast Asia - Fri, November 1, 2024 | 10:02 pm GMT+7

Study finds shift in Thai consumers’ spending patterns

Study finds shift in Thai consumers’ spending patterns

Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).

Southeast Asia - Fri, November 1, 2024 | 10:00 pm GMT+7

Energy security, digitalization key to Indonesia's economic growth

Energy security, digitalization key to Indonesia's economic growth

The Indonesian government is prioritizing long-term economic growth through energy security, digitalization, and natural resource industrialization, according to Deputy Minister of Finance Thomas Djiwandono.

Southeast Asia - Fri, November 1, 2024 | 9:58 pm GMT+7

Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM

Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM

Prime Minister Pham Minh Chinh’s freshly ended six-day trip to the UAE, Saudi Arabia and Qatar has produced important outcomes, demonstrating the growing relations between Vietnam and the three Middle-East countries, Deputy Prime Minister and Foreign Minister Bui Thanh Son told the Vietnam News Agency.

Politics - Fri, November 1, 2024 | 9:25 pm GMT+7

Vietnam, Qatar look to tap potential for energy, oil & gas collaboration

Vietnam, Qatar look to tap potential for energy, oil & gas collaboration

Vietnam and Qatar have recognized the significant potential for further collaboration in multiple sectors such as energy, oil and gas, especially LNG, agriculture, Halal industry, and banking.

Politics - Fri, November 1, 2024 | 9:02 pm GMT+7

Thailand bans export of raw palm oil until December

Thailand bans export of raw palm oil until December

Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.

Southeast Asia - Fri, November 1, 2024 | 8:31 pm GMT+7

Envision Energy to build $420 mln wind power plant in Vietnam from June 2025

Envision Energy to build $420 mln wind power plant in Vietnam from June 2025

Envision Energy Singapore Pte Ltd, under China-based Envision Energy, aims to kick off construction of the 300-MW Envision Nam Po wind power plant in Vietnam’s northern mountainous province of Dien Bien in June 2025.

Energy - Fri, November 1, 2024 | 8:30 pm GMT+7

Indonesia to ban plastic waste imports from 2025

Indonesia to ban plastic waste imports from 2025

The Indonesian government will start imposing a ban on the import of plastic waste from the beginning of next year, according to Minister of Environment Hanif Faisol Nurrofiq.

Southeast Asia - Fri, November 1, 2024 | 8:29 pm GMT+7

Islamic economy makes up 48% of Indonesia’s GDP

Islamic economy makes up 48% of Indonesia’s GDP

The contribution of Islamic business activities to Indonesia’s GDP has been estimated at 48%, local authorities reported at the 11th Indonesia Sharia Economic Festival (ISEF).

Southeast Asia - Fri, November 1, 2024 | 8:28 pm GMT+7

Restructured construction giant Tracodi gets set to execute ambitious plans

Restructured construction giant Tracodi gets set to execute ambitious plans

After changing its name and restructuring as a group, Tracodi Construction Holdings JSC (HoSE: TCD), a member of Bamboo Capital Group (HoSE: BCG), has completed a leadership shake-up and is poised to achieve rapid growth.

Bamboo Capital - Fri, November 1, 2024 | 4:43 pm GMT+7

Philippines requests companies to pay for plastic waste treatment

Philippines requests companies to pay for plastic waste treatment

The Philippines expects its "Extended Producer Responsibility" (EPR) that came into force last year will help it curb plastic waste

Southeast Asia - Fri, November 1, 2024 | 4:30 pm GMT+7

Indonesia warns of rising online terrorism

Indonesia warns of rising online terrorism

Indonesia's National Counter-Terrorism Agency (BNPT) has warned of a shift in terrorism tactics, moving from public attacks to online platforms that target vulnerable groups, particularly women and children.

Southeast Asia - Fri, November 1, 2024 | 4:29 pm GMT+7

Singapore establishes global fintech network

Singapore establishes global fintech network

The Monetary Authority of Singapore (MAS) on Wednesday announced that it has established a “Global Finance & Technology Network” (GFTN) to propel Singapore’s reputation as a premier global fintech hub into its next phase and enhance global connectivity.

Southeast Asia - Fri, November 1, 2024 | 4:28 pm GMT+7

Nokia, Viettel deploy 1.2 Tb/s optics transmission in Vietnam, to help 5G growth

Nokia, Viettel deploy 1.2 Tb/s optics transmission in Vietnam, to help 5G growth

Finnish giant Nokia and Vietnamese telco Viettel have rolled out high-capacity optical network after achieving an optics transmission speed record of 1.2Tb a second per wavelength in Vietnam.

Companies - Fri, November 1, 2024 | 3:40 pm GMT+7

Korea SK Group sells 76 mln shares of Vietnam’s Masan, no longer major shareholder

Korea SK Group sells 76 mln shares of Vietnam’s Masan, no longer major shareholder

South Korea’s chaebol SK Group has sold 76.28 million shares of Vietnam’s conglomerate Masan, lowering its ownership in Masan to 3.67% of the charter capital and 3.86% of the voting shares.

Companies - Fri, November 1, 2024 | 3:16 pm GMT+7

HCMC-based Bamboo Capital's energy arm fulfils 98% of profit target in 9 months

HCMC-based Bamboo Capital's energy arm fulfils 98% of profit target in 9 months

BCG Energy JSC, a subsidiary of Vietnamese private conglomerate Bamboo Capital Group, posted a consolidated after-tax profit of VND504 billion ($19.94 million) in the first nine months of 2024, fulfilling 98% of the year's profit target.

Bamboo Capital - Fri, November 1, 2024 | 2:32 pm GMT+7