Hai Phong City: A “Bright Spot” for FDI Attraction

DNHN - Hai Phong is the engine fueling the development of the Northern region and the whole country. The port city's socioeconomic development has always included luring foreign direct investment.

Setting a record in drawing FDI capital

In 2023, Hai Phong’s foreign direct investment (FDI) capital attraction reached a record high. As of December 20, 2023, Hai Phong maintained its position as the second largest city in the country after Ho Chi Minh City with a total FDI capital of 3.4 billion USD. In total, there are currently 933 valid FDI projects in Hai Phong with a total investment capital of 28.9 billion USD.

The foreign investment capital (FDI) sector in 2023 is estimated to reach 65,068 billion VND, an increase of 8.15% over the same period. The implemented capital is mainly concentrated in 3 factories of the LG Group in Hai Phong. In addition, some other enterprises have also stepped up their investment, such as Regina Miracle International Vietnam Co., Ltd.; Pegatron Vietnam Co., Ltd.; Shin-Etsu Magnet Materials Co., Ltd.; and Tesa Site Hai Phong Co., Ltd. In 2023, Hai Phong granted 100 new projects with a newly registered capital of 1.3 billion USD; and adjusted the investment capital of 46 projects with an additional investment capital of more than 1.9 billion USD.

Hai Phong has 933 valid foreign investment projects with a total investment capital of 28.9 billion USD. The total foreign investment capital attraction, including newly registered capital, adjusted registered capital, and capital contribution and share purchase by foreign investors, reached 3,402.7 million USD. There are currently 16 countries and territories with investment projects in Hai Phong (from the beginning of the year to December 20, 2023), of which South Korea leads with a total registered capital of 540.6 million USD, accounting for 36.67% of the total investment capital; Singapore ranks second with a total investment capital of 454.8 million USD, accounting for 31.69% of the total investment capital; and China ranks third with a total registered capital of 204.2 million USD, accounting for 14.23% of the total investment capital.

Among the newly granted projects from the beginning of the year to December 20, 2023, the Ecovance high-tech biodegradable material production plant project of the investor Ecovance Co.Ltd (South Korea) has the largest registered capital, reaching 500 million USD; The Nam Long - Thuy Nguyen housing project of the investor VSIP Hai Phong Co., Ltd. (Singapore) with a total registered capital of 93.4 million USD; The Vanani battery and redox flow battery production and assembly plant project for energy storage of the investor VRB Energy International Pte. Limited (Singapore) with a total registered capital of 83.7 million USD; The container ship exploitation project of the investor Zim Integrated Shipping Services LTD (Israel) with a total registered capital of 60 million USD.

Among the projects with increased investment capital from the beginning of the year to December 20, 2023, the project with the largest increased capital is the LG Innotek Hai Phong plant project of LG Innotek Vietnam Hai Phong Co., Ltd., with an adjusted investment capital increase of 1 billion USD; followed by the machinery and equipment manufacturing project of Kyocera Office Machinery Technology Vietnam Co., Ltd. with an increase of 237.5 million USD and the plastic components and electronic components manufacturing plant project of Hanmiflexible Vina Co., Ltd. with an increase of 80 million USD.

Promoting domestic and foreign investment attraction

In 2024, to continue promoting the attraction of resources for the development of Hai Phong city into a modern, smart, and sustainable industrial city of regional scale in Southeast Asia, Hai Phong aims to attract 2.0-2.5 billion USD of FDI capital, while taking advantage of its strengths and existing potential to promote and attract domestic investment. Effectively implement domestic investment projects and works, ensuring progress and bringing positive effects in the socio-economic development of the City.

To achieve the above goal, the City has set out some solutions and tasks to implement, including:

Accelerate the progress of implementing key traffic projects, promptly complete and put into use important traffic infrastructure works, and maximize the design capacity for socio-economic efficiency.

Implement the Program for the Development of Supporting Industry in Hai Phong City to 2025, with a vision to 2030; accelerate the construction of workers’ housing projects. Study and propose the establishment of a free trade zone in the southern coastal economic zone of Hai Phong. Attract investment in the construction of new logistic centres.

Encourage and create favourable conditions for the development of enterprises providing logistic services, arrange suitable land funds to attract investment in a system of logistic centres of national and international scale.

Focus on promoting on-site investment, and online investment, attracting large high-tech projects with a leading role, making great contributions to the City. Step up administrative reform, improve the investment and business environment, and enhance provincial competitiveness in association with the implementation of the Government’s Decision approving the Project on the Development of Application of Population Data for Identification and Electronic Authentication.

State management agencies regularly engage in dialogue, listen to the opinions of the business community and people to have timely policy responses; promptly and thoroughly resolve difficulties and problems in the investment and business environment.

Strengthen budget revenue and expenditure discipline, improve the investment and business environment, and prioritize economic growth. Accordingly, effectively manage the state budget estimates so that in 2024, the City ensures the completion and over-fulfillment of the estimates assigned by the City People’s Council, creating resources for the City’s development.

Nam Tri Duc