Hai Phong is the largest port city in Northern Vietnam and the third largest city in the country after Hanoi and Ho Chi Minh City. Hai Phong is also one of the country's important industrial centers.
Over the past 5 years, Hai Phong has been one of the cities with the fastest GRDP growth rate in the country.
With an upgraded infrastructure system, favorable geographical location and great support from the government, Hai Phong has great potential for foreign investment opportunities.
Located about 120 km east of Hanoi, Hai Phong is not only the largest coastal city in the Northern region of Vietnam but also one of the major economic centers of the country. Hai Phong is among the five centrally run cities of Vietnam, along with Hanoi, Ho Chi Minh City, Can Tho and Da Nang. With an area of 1.527 square kilometers and a total population of 2,07 million in 2021, it is the seventh most populous city in the country.
Located in a strategic location of the Red River Delta, Hai Phong serves as a major trading hub. As the only city in the North with 5 modes of transportation including rail, road, air, inland waterway and maritime, Hai Phong has the potential to develop into a manufacturing center and industrial park. , a large-scale economic zone in Southeast Asia.
In recent years, Hai Phong has always maintained its position in the top two localities with the fastest growing gross regional product (GRDP) in Vietnam. Hai Phong's average annual growth rate in the period 2017-2021 is 15,26%, nearly double that of the period 2012-2016 and 2,9 times higher than the national average.
In 2021, Hai Phong ranks first in the country in GRDP growth rate, reaching approximately 13,58 billion USD (current price), an increase of 12,38% over the same period. Despite having a low growth rate compared to the 2017-2019 period partly due to the pandemic, the city is one of two localities in Vietnam to achieve a double-digit GRDP growth rate in 2021 (ranked 2nd is Quang Ninh with GRDP growth rate of 10,28%). .
In the first half of 2022, Hai Phong's GRDP continued to increase by 10,04 percent compared to 13,22 percent over the same period last year.
Industry growth
The industrial and construction sector continues to grow the fastest at 19,04% in 2021. Compared to 2020, the construction sector increased by 7,43%, while the industrial sector with a growth rate of 20,75 .XNUMX% plays an important role in the city's economy.
The service sector increased by 5,13%. The agriculture, forestry and fisheries sector increased slightly by 1,49%.
The economic structure
Hai Phong's economic structure continues to shift towards industrialization with the goal of economic development, in which the proportion of industry and services in the city's GDP will increase while the proportion of the agricultural sector will increase. industry will decrease.
As of 2021, the industrial and construction sector still dominates, accounting for the highest proportion of 52,86% of the city's GRDP, followed by the service sector at 37,35%. The agriculture, forestry and fisheries sector only accounts for 3,97%.
Trade
Compared to the same period last year, Hai Phong's total export turnover in 2021 is estimated to reach 26,51 billion US dollars, an increase of 23,99% over the same period last year. Meanwhile, the total turnover of imported goods in 2021 is estimated to reach 25,77 billion USD, an increase of 25,84% over the same period.
The infrastructure
In addition, local authorities are promoting the city's infrastructure system. Hai Phong plans to build 100 more bridges with a total investment of 3,6 billion USD. Lach Huyen Port of Hai Phong - the largest deep-water port in Northern Vietnam will also be expanded with the construction of terminals 5 and 6. Once completed, these two terminals are expected to be able to receive 100.000 DWT vessel, creating favorable conditions for shipments from Northern Vietnam directly to the EU and US markets.
Hanoi - Hai Phong Expressway and Hai Phong - Ha Long Expressway are part of a series of important infrastructure projects in the region. When the Van Don - Mong Cai expressway in Quang Ninh is completed, it will create the longest expressway in Vietnam, connecting all major economic centers, industrial parks and international airports in the North, including Noi Bai (Hanoi) - Cat Bi (Hai Phong) and Van Don (Quang Ninh), all the way to Mong Cai international border gate. This will reduce transportation time and costs, promoting cross-border trade between Vietnam and China and other ASEAN countries.
FDI foreign investment activities
According to the Ministry of Planning and Investment, by 2022, Hai Phong will always be in the top position in receiving foreign direct investment capital in Vietnam with a total registered investment capital of 24,15 billion USD. As of January 1, the city has 2022 industrial parks in operation, including 12 FDI projects of foreign investors from 420 countries and territories. Most investors come from Japan, Korea, China, EU, US and Taiwan.
Some major projects include the LG Display project from Korea, the Bridgestone tire factory from Japan and the assembly partner of Microsoft and Apple - the Pegatron electronics factory from Taiwan.
According to a report by the Hai Phong Economic Zone Authority (HEZA), FDI projects in Hai Phong industrial zones account for more than 60% of the city's industrial output and more than 70% of the city's export turnover. city.
By 2022, Hai Phong aims to reach 2,5 - 3 billion USD in foreign direct investment. In the first 5 months of 2022, the total value of newly registered capital is 30 projects; Capital adjustment of 19 existing projects and capital contribution and share purchase of foreign investors in Hai Phong reached 832,72 million USD. This number accounts for 33,5% of the 2022 target.
Most new foreign capital invested in the manufacturing and processing industry.
Implementing Resolution No. 45-NQ/TW of the Politburo on "Building and developing Hai Phong city to 2030, vision to 2045", Hai Phong authorities encourage foreign investment into the fields of high technology, seaport-logistics and tourism-trade as the three pillars of Hai Phong's economy. HEZA also aims to build 15 new industrial parks with a total area of 6200 hectares, to prepare for a new wave of foreign investment.
Hai Phong – production center
With its rapid development into a major manufacturing center, Hai Phong is a strategic investment location for foreign investors considering supplementing their manufacturing activities. Investors can choose to set up production facilities in another competitive market like Vietnam to diversify the supply chain. In May 5, Tesa, a German industrial adhesive tape manufacturer, confirmed an investment of US$2020 million in Hai Phong.
Hai Phong ranks 2nd out of 63 provinces and cities in Vietnam in terms of provinces with the most favorable business environment, according to the assessment of the Provincial Competitiveness Index (PCI) in 2021. Industrial Production Index (IPP) Hai Phong in 2021 is estimated to increase by 18,5% over the same period last year, being one of the provinces with the highest growth rate among provinces and cities with large industrial production scale in Vietnam.
With a favorable geographical location, along with the promotion of infrastructure as well as many incentives to attract FDI from all levels of government, Hai Phong's continuous industrial development will not only enhance connectivity. of Vietnam with the global supply chain but also makes Hai Phong one of the ideal destinations for investors who are considering moving production activities and increasing trade with East Asian and Southeast Asian countries. .
Source: Vietnam – Briefing