The northern city of Hai Phong on Saturday commenced construction of the Xuan Cau industrial, logistics and non-tariff zone, the biggest of its kind in Vietnam, in Dinh Vu-Cat Hai Economic Zone.
The VND11.1 trillion ($473 million) complex, located at Lach Huyen Port, is poised to become an international logistics hub, according to municipal authorities.
The 752-hectare project was approved by the Prime Minister in April 2021. The first phase of construction is slated for completion in 2025, the second in 2030, and the third in 2033, at which point it will employ 40,000-50,000 people.
Of the total, 369 hectares have been earmarked for manufacturing facilities and 173 hectares for warehouses and logistics.
The zone will offer various incentives, including import-export tax, VAT, and special consumption tax exemptions. Businesses located in the zone will also enjoy simplified administrative procedures.
Xuan Cau-Lach Huyen Investment JSC, the project's investor, has pledged to support enterprises "at the highest level" in acquiring construction licenses and in production, and ensuring adequate supplies of electricity, water, and telecom services, along with wastewater and solid waste treatment.
Another advantage is the zone's proximity to Hai Phong's center (28 kilometers), Cat Bi International Airport in the city (25 km), and Noi Bai International Airport in Hanoi (128 km).
A representative of Xuan Cau-Lach Huyen Investment JSC, a Hai Phong-based firm, said the zone will be attractive to leading global businesses in the maritime transport-logistics sector and transform Hai Phong into a foreign investment magnet in the northern region.
Hai Phong, home to three LG factories, transported 44.9 million tons of goods via seaports in the first four months of this year, down 1.28% year-on-year, with a revenue of VND2.05 trillion ($87.17 million), down 2.68%.