Vietnam’s northern port city of Hai Phong has plans to build new industrial parks (IPs) to prepare for an anticipated increase in foreign direct investment (FDI) amidst a supply chain value shift to the Southeast Asian region.
The city has worked out a plan to construct an additional 13 IPs with a combined area of nearly 5,000 hectares. Of them, it has submitted applications to the Ministry of Planning and Investment for four IPs, namely Nam Trang Cat, Thuy Nguyen, Trang Due 3, and Giang Bien.
Hai Phong, one of the five centrally-administered cities in Vietnam, last year secured prime ministerial approval of the 752-ha Xuan Cau IP and non-tariff zone and the 410-ha Tien Thanh IP. Infrastructure construction is under way, and they are expected to come into operation in 2024-2025.
The city has 14 operational IPs with a combined area of over 6,000 ha and an average occupancy rate of 60.5%.
Under its master plan, the city will have 25 IPs by 2050, covering 15,777 ha, and an economic zone in the south with some 20,000 ha.
To ride a global trend, Hai Phong is calling for investment in eco-industrial parks, with a focus on green transition and low carbon emissions.
Serving as Vietnam’s northern gateway to maritime routes, Hai Phong had attracted 1,130 FDI projects worth a combined $29 billion as of February, according to official data. Among the largest foreign investors are LG, SK, and Kyocera Document Solutions.
Suan Teck Kin, executive director at UOB Global Economics & Market Research, said in January that Vietnam was well-positioned to attract more FDI, given its competitiveness and an ongoing supply chain shift to the Southeast Asian region.
Investment from China has rapidly grown over the past years, taking the fourth place in 2023 with $421 million, government data showed.