Hai Phong proposes southern economic zone to draw investment

Vietnam's northern city of Hai Phong is urgently finishing documentation, procedures, and other related work to submit to Prime Minister Pham Minh Chinh for a project to establish a coastal economic zone in the second quarter.

Le Trung Kien, head of the Hai Phong Economic Zone management board, delivered the aforementioned material at a conference themed "Southern coastal economic zone: a new driving force for Hai Phong economic development" on Sunday.

Kien stated that the construction of the southern Hai Phong economic zone is critical to the process of reforming the city and the country's economy. This has been demonstrated by the establishment and growth of the Dinh Vu-Cat Hai Economic Zone.

The Dinh Vu-Cat Hai Economic Zone was founded in 2008 and covers 22,540 hectares. It currently contains nine industrial parks. Dinh Vu-Cat Hai has been the country's most successful coastal economic zone due to the coordinated development of seaport facilities, transportation, services, urban regions, and social housing. It has various projects in the domains of high technology, processing, and manufacturing from top domestic and international organizations, attracting a total of $32 billion in investment.

The economic zone's expansion has helped to restructure industries, promote industrialization and modernization, and increase Hai Phong and Vietnam's participation in global value chains. However, the land in the area is nearly depleted, with an occupancy rate of 80%. Clearance of the remaining areas in the zone presents numerous challenges due to congestion and a shortage of land for resettlement. As a result, the zone is becoming increasingly constrained.

Kien reiterated that the development of the southern Hai Phong economic zone will catch a wave of investment in the fields of high technology and semiconductors, as well as creating green economic zones.

Furthermore, the zone can leverage the city's advantages and potential by integrating with nearby economic zones and efficiently utilizing development orientations at Nam Do Son seaport and Tien Lang airport, maximizing the Dinh Vu-Cat Hai Economic Zone's potential.

Many delegates at the conference agreed that the southern Hai Phong economic zone is vital. Ko Tae Yeon, chairman of KOCHAM Hai Phong, stated that the establishment of the zone is appealing to South Korean investors. There are currently 106 Korean investors' projects in Hai Phong with total investment capital of more than $10 billion.

According to the Hai Phong Economic Zone Authority, the southern economic zone spans 20,000 hectares along the coastal highway and benefits from a favorable geographical location, traffic, infrastructure, and development potential. The zone's industrial parks include Tien Lang 1, Tien Lang 2, Tan Trao, Ngu Phuc, Tien Lang airport, and Tran Duong.

The city plans to encourage the construction of the zone between 2024 and 2025. From 2026 to 2030, relevant agencies will create and submit for approval general plans for the creation of more economic zones, infrastructure investment, functional area construction, and secondary project attraction.

Hai Phong is Vietnam's sixth largest economy. According to its 2050 vision, Hai Phong will become a major seaport with three development pillars: seaport services (logistics), green industry, and an international marine tourism center. The city’s population is approximately 4.5 million people, with a high level of development that puts it among the leading cities in Asia and around the world.