Hai Phong city has kicked off construction of a VND1,066 billion ($45.42 million) road linking its central administrative-political area to urban areas and economic sites, including VSIP Hai Phong Industrial Park.
The project of extending Do Muoi road in the northern coastal city was funded by the municipal budget and is set to complete in 2024. The 1.6-kilometer road, with a designed speed of 60 kilometers per hour, is expected to establish a land bank of 44.15 hectares for developing nearby urban areas.
At the groundbreaking ceremony on Friday, Hai Phong Vice Chairman Le Anh Quan affirmed the city is focusing on investing in traffic infrastructure to facilitate socioeconomic growth, with Thuy Nguyen district, home to VSIP Hai Phong, as a priority.
Construction of the $1-billion VSIP Hai Phong was kicked off in 2010. It features 500 hectares of industrial facilities and 1,000 hectares for residence and services. The facility offers special tax incentives of low corporate income tax (CIT) of 10% in 15 years, CIT exemption in four years, 50% reduction in CIT in the next nine years, and 50% reduction in personal income tax (PIT).
Hai Phong had attracted 852 foreign investment projects with a total registered capital of $24.57 billion as of December 15, 2022, according to the municipal statistics office.
Vietnam-Singapore Industrial Park (VSIP), a joint venture between Sembcorp and Vietnamese industrial developer Becamex, is the investor behind VSIPs across the country. VSIP’s 12 industrial parks in Vietnam are located in Bac Ninh, Hai Phong and Hai Duong in the north; Nghe An, Quang Tri and Quang Ngai in the central region; and Binh Duong and Can Tho in the south.
Sembcorp Industries received an investment license on October 17 to develop a 293.7-hectare IP in Can Tho city, its first in Vietnam's Mekong Delta. A VSIP could also take shape in the central province of Ha Tinh next year.