Hai Phong speeds up to lead Vietnam’s development

(VOVWORLD) -Despite socio-economic difficulties caused by the post-COVID global slowdown, Hai Phong city’s Gross Regional Domestic Product (GRDP) grew 9.65% in the first three months of this year, nearly three times faster than the national average. Strong, stable economic growth will allow Hai Phong to become a growth engine of the Red River Delta region and the country.
Hai Phong speeds up to lead Vietnam’s development - ảnh 1Prime Minister Pham Minh Chinh (first row, second from right) inspects several key projects in Hai Phong and encourages investors and businesses. (Photo: VOV)

In the first months of the year, the Hai Phong Economic Zone Authorities (HEZA) coordinated with functional agencies and localities to hold dialogues to remove difficulties for businesses in industrial parks and economic zones. 

New ways have been devised to attract investment - for example, by sending a delegation to South Korea to promote Hai Phong’s potentials and strengths. Trade promotion programs have been held with China’s Taiwanese businesses and EuroCham and the infrastructure of industrial parks has been upgraded and renovated to handle the expansion of companies and economic groups.

As a result, Hai Phong has so far this year attracted about 500 million USD in foreign direct investment (FDI), with 17 new projects and nine projects registering to adjust their capital, and 47 million USD in domestic direct investment capital (DDI).

At a working session with the HEZA to survey investment in the city, Chen Hung Chin, Chairman of the Wieson Technologies Company, said that they’ve impressed with the potentials, advantages, investment attraction policies, and, above all, the municipal support for investors.

Chen, who is also head of China’s Taiwan Electrical and Electronic Manufacturers' Association said, “Based on which Taiwanese businesses can outline investment plans in industrial parks and economic zones in Hai Phong.”

The timely support measures have helped Hai Phong’s index of industrial production (IIP) grow 13.37% this year. Its construction and service industries grew steadily, helping Hai Phong achieve a GRDP growth rate of 9.65% in the first quarter, three times faster than the national average and more than Vietnam’s centrally-run cities.

Le Gia Phong, Director of the municipal Statistics Office, said, “A number of new projects have come into operation, helping us maintain our growth rate."

The construction and service sectors remain the top contributors. Since the pandemic was controlled and the city’s support policies on service and tourism were promulgated, tourism has enjoyed strong growth, leading to growth in retail and other sectors, according to Phong.

Hai Phong maintaining its top position is partly due to the disbursement of public investment capital. By the end of April, Hai Phong had disbursed about 174 million USD, fulfilling 31% of the plan assigned by the Prime Minister and almost double the national average.

According to Nguyen Hoang Long, Director of the municipal Department of Planning and Investment, “This is the first time in the first quarter Hai Phong has achieved the highest rate of disbursement of public investment.

“All project management boards have had relatively high disbursement rates, especially the Urban Development and Civil Engineering Department. In the first quarter, Hai Phong made strides in upgrading and expanding urban space and opening important traffic and urban projects,” Long said.

At the end of March, the Prime Minister approved an adjusted master plan for Hai Phong until 2040, with a vision to 2050, under which the city will become a leader in industrialization and modernization, and a growth leader of the Northern region and Vietnam. Under the vision to 2050, Hai Phong will become one of the most developed cities in Asia and the world.

While attending a recent groundbreaking ceremony for Xuan Cau Industrial Park and Non-Tariff Zone Project in Cat Hai district, Prime Minister Pham Minh Chinh asked Hai Phong to prove its leading role in regional and national development.

“Located in the development triangle, Hai Phong has developed but has to make more breakthroughs,” said the Government leader, adding he believes Hai Phong can fulfill its responsibility to the nation.

“I suggest that Hai Phong link more closely with provinces and cities nationwide, develop rapidly but sustainably, and ensure national security and defense,” said Mr. Chinh.

To achieve its goals, Hai Phong city continues to refine its growth model and restructure its economy by developing high-tech industry, seaport-logistics, and tourism-commerce.

In the short term, it is promoting digital transformation and focusing on solving difficulties and removing obstacles to facilitate production and business activities, accelerating industrial projects, and creating new products toward achieving the target economic growth rate of 12.7 to 13%.