The northern coastal city of Hai Phong plans to establish a coastal economic zone (EZ) with a total area of about 20,000 hectares.
According to the plan, the city’s second EZ will span the districts of Do Son, Kien Thuy, An Lao, Tien Lang and Vinh Bao, the city’s EZ management board said at a conference on Tuesday.
The South Hai Phong Economic Zone will house important infrastructure projects including Tien Lang airport, Nam Do Son port, and two logistics centers in Kien Thuy and Tien Lang, along with a port system along the Van Uc river, said Le Trung Kien, head of the management board.
In the economic zone, Hai Phong plans to establish a number of industrial parks such as Tan Trao (500-550 hectares), Ngu Phuc (450-500 hectares), Tien Lang 1 (600-700 hectares), Tien Lang 2 (500-550 hectares), Tien Lang Airport IP (450-500 hectare), and Tran Duong-Hoa Binh Industrial Development Area (800-900 hectares).
According to Kien, the establishment of the new EZ will help the city optimize the development potential of its existing IPs and the Dinh Vu-Cat Hai EZ.
It will effectively exploit the development of the coastal highway, Nam Do Son port and Tien Lang airport, and connect with EZs in neighboring localities to create a chain of coastal EZs serving as a growth momentum for the Red River Delta, he said.
He added that the EZ will contribute to developing Hai Phong into a modern and professional city, truly becoming a breakthrough growth engine for the Red River Delta and the whole country.
According to Kien, after 30 years, the city’s industrial parks and Dinh Vu-Cat Hai Economic Zone have attracted 688 investment projects with total capital of up to $36.32 billion. Of these, there are 473 FDI projects with combined registered capital of $22.39 billion, and 216 domestic investments worth $13.93 billion.
Since 2008, they have lured 408 foreign investment projects worth $22.19 billion (18.5 times higher than the figure in the 1993-2007 period), and 203 domestic projects worth $13.68 billion (up 54.7 times), he said.
These include a complex of projects by South Korea’s LG Group with total registered capital of $9.24 billion; a $7.6 billion automobile manufacturing complex by VinFast, a subsidiary of Vietnamese private conglomerate Vingroup; a $1.22 billion project of Japan’s Bridgestone Corporation; and a $900 million project of Taiwan’s Pegatron Corporation.
These projects have made important contributions to the city's socio-economic development, Kien said, adding the value of industrial production in industrial parks and economic zones in 2022 reached VND683.7 trillion ($28.35 billion), accounting for 82% of the local economy.
They contributed more than VND80 trillion ($3.32 billion) to the local state budget in the 2008-2023 period, making up 11.6% of the city’s total. The IPs and EZ now employ over 191,000 workers, with an average income of VND10.2 million ($423) per month.
They have also helped accelerate the process of industrialization, modernization and urbanization; promote technology transfer, and economic restructuring; create jobs and increase labor productivity.
In 2011-2020, Hai An, An Duong, Thuy Nguyen and Cat Hai districts located in the Dinh Vu-Cat Hai EZ boasted a combined investment capital equivalent to 68% of the city’s total figure, with high average economic growths rate such as 27.8% in An Duong and 21% Hai An.
Earlier, Hai Phong expanded the industrial area of the Dinh Vu-Cat Hai EZ by 300 hectares under an updated plan.
Accordingly, the EZ will cut 65 hectares of its public utility service area, 200 hectares of alluvial water surface, and 70 hectares of port area to make way for industrial development and warehousing with 300 hectares, traffic infrastructure with 33 hectares, and military purposes with two hectares.