Hai Phong ranked 2nd in the country in attracting FDI with a total registered investment of more than 2.8 billion USD, accounting for 10.9% of the country’s total investment thanks to natural advantages and policies, attractive incentives that attract foreign investors to build factories in Hai Phong.
Economic development potential in Hai Phong
Prime geographical location with the largest port in the North
Hai Phong, located in the development triangle of Hanoi – Quang Ninh – Hai Phong, is one of 7 provinces in the key economic region of Northern. Bordering 3 provinces of Quang Ninh, Hai Duong, Thai Binh, Hai Phong has a 125 km long coastline and converges 5 major estuaries: Lach Tray, Bach Dang, Cua Cam, Van Uc and Thai Binh.
Hai Phong has a number of ports accounting for 17.6% of Vietnam’s total ports and owns the largest Hai Phong port in the North, the second largest in the country after Saigon port. This is also the port city closest to the Southwest region of China compared to other provinces, serving as a pivotal trading hub linking Northern Vietnam and China, Southeast Asian countries and international markets.
Developed transportation infrastructure, converging all 5 important modes of transport.
Converging all 5 types of transportation including airway, seaway, inland waterway, railway and road, Hai Phong becomes an industrial gateway and an important trading hub connecting with coastal provinces in the Northern coastal region and international maritime traffic hubs.
- Hai Phong owns Cat Bi airport connecting with countries such as Thailand, Korea and Chinese provinces such as Guangzhou and Yunnan, creating favorable conditions for domestic and foreign trade.
- The dense seaport system including 52 ports such as Lach Huyen port, Nam Dinh Vu port, Tan Vu port… is potential for the development of the logistics industry.
- The inland waterway network spans nearly 2,700km, accounting for nearly 40% of the country’s total inland waterway length.
- The Hanoi – Hai Phong railway passes through Hung Yen and Hai Duong provinces to make goods movement more convenient.
- The road system is typically invested and developed such as the construction of Hanoi – Hai Phong expressway, Hai Phong – Ha Long – Mong Cai expressway, Tan Vu – Lach Huyen overpass… connecting economic hubs to help reduce travel time and cost effectively.
The developed transportation infrastructure is one of the key factors that helps attract more and more investors to build factories in Hai Phong.
Industrial zone infrastructure has developed outstandingly
Currently, Hai Phong has 14 active industrial zones with an industrial production land fund of 4,028.46 hectares and an occupancy rate of about 60.5%.
Besides, Hai Phong also promotes the leasing of warehouses and factories. Some industrial zones that focus on leasing high-quality factory systems include VSIP , DEEP C industrial zones equipped with modernly developed water supply, electricity, wastewater treatment, communication systems and fire protection.
In addition, Hai Phong has invested nearly 1,600 billion VND to build a social housing area comprising 2,538 apartments for workers in Trang Due industrial zone, creating favorable conditions for workers and low-income labor in the industrial zone.
Nam Dinh Vu II Industrial Zone – Hai Phong (perspective photo)
Up to now, the city had 913 valid foreign-invested projects with a total registered investment of 29.42 billion USD. From the beginning of the year to November 2023, Hai Phong attracted FDI of 2.8 billion USD, ranking second in the country after Quang Ninh.
Policies for development and investment incentives to attract building factory in Hai Phong
Development policies
To attract foreign investment in building factories in Hai Phong, the city has many favorable policies for investors.
- Encouraging the transfer and application of high-tech science and clean production to improve the efficiency of resource usage, aiming for green growth and sustainable development.
- Developing high-quality vocational training projects in a number of industrial fields such as electronics, semiconductor manufacturing, information technology, logistics…
- Building e-government to enhance the quality of public services.
- Implementing administrative reform: establish an investment, trade and tourism promotion center to help quickly resolve investment procedures so that investors in Hai Phong can quickly operate factories
Incentives for industrial zones
In addition to favorable policies aiming at attracting FDI investors to build factories in Hai Phong, the city also has attractive incentives for industrial zones.
- Exemption from corporate income tax for the first 02 years, followed by a 50% reduction of tax payable for the next 04 years.
- From the first year of taxable income, enterprises only need to pay an income tax rate of 17% instead of the standard 20% tax rate.
- Enterprises are exempt from land rent and water surface rent for the entire lease term as prescribed in Decree No. 46/2014/ND-CP.
With the above incentives and development policies, the city has attracted many large-scale investors to build factories and workshops in Hai Phong. Big worldwide corporations respectively invested and designed factories in Hai Phong and located their headquarters in the city such as LG Group with registered capital of 9.24 billion USD, Bridgestone Group with 1.224 billion USD, Pegatron with 900 million USD…
List and map of industrial zones in Hai Phong
Deep C Hai Phong Industrial Zone I:
- Area: 541 hectares.
- Location: Dinh Vu – Cat Hai Economic Zone, Dong Hai 2 Ward, Hai An District, Hai Phong.
- Operating time: 50 years (from 1997 – 2047).
Deep C Hai Phong II Industrial Zone:
- Area: 645 hectares.
- Location: Tan Vu – Lach Huyen Bridge Roundabout, Dong Hai 2 Ward, Hai An District, Hai Phong.
- Operating time: 50 years (from 2018 – 2068).
- Occupancy rate: 70%.
Deep C Hai Phong III Industrial Zone:
- Area: 520 hectares.
- Location: Dinh Vu – Cat Hai Economic Zone, Cat Hai District, Hai Phong.
- Operating time: 50 years (from 2014 – 2064)
- Industries attracting investment: Renewable energy industry components; Logistics and services, automobile and spare parts manufacturing; chemical and petrochemical industry.
Trang Due Industrial Zone
- Location: Le Loi Commune, An Duong District, Hai Phong
- Total area: 1,088 hectares.
- Operating time: 50 years (from 2011 – 2061)
- Occupancy rate: 86%
- Industries attracting investment: investment in manufacturing high-tech products, environmentally friendly products, electrical assembly, supporting industries…
VSIP Hai Phong Industrial Zone
- Location: Dinh Vu – Cat Hai Economic Zone, Tan Duong Commune, Thuy Nguyen District, Hai Phong.
- Area: 1,600 hectares.
- Operating time: 50 years (from 2008 – 2058)
- Occupancy rate: 71.38%.
- Industries attracting investment: green industry.
Nam Cau Kien Industrial Zone
- Location: Kien Bai, Thien Huong, Lam Dong and Hoang Dong communes, Thuy Nguyen District, Hai Phong.
- Total area: 263.47 hectares.
- Operating time: 50 years (from 2008 – 2058)
- Occupancy rate: 60%.
- Industries attracting investment: manufacturing equipment to support investment technology, exported interior/exterior decoration products, supporting technology, high technology, service industries serving production in industrial zones…
Nam Dinh Vu Industrial Zone
- Location: Dinh Vu – Cat Hai Economic Zone, Dong Hai 2 Ward, Hai An District, Hai Phong.
- Area: 1,329 hectares.
- Operating time: 50 years (from 2009 – 2059)
- Occupancy rate: 32 – 40%.
- Industries attracting investment: electronic components, Logistics, warehouse business, petroleum and liquefied gas, heavy industry, energy
An Duong Industrial Zone
- Location: Bac Son and Nam Son communes, An Duong District, Hai Phong
- Area: 196.1 hectares
- Operating time: 50 years (from 2008 – 2058)
- Occupancy rate: 92%
- Industries attracting investment: electronics, refrigeration, high-end consumer goods and projects with modern, environmentally friendly technology
Nomura Industrial Zone
- Location: National Highway 5, An Duong District, Hai Phong.
- Area: 153 hectares.
- Operating time: 50 years (from 1994 – 2044)
- Occupancy rate: 100%.
- Industries attracting investment: machine manufacturing, mechanics; manufacturing car and motorbike components, electrical and electronic equipment components, textiles and garments, marine equipment, packaging.
Dự án xây dựng nhà máy Kyoritsu Việt Nam tại KCN Nomura, An Dương, Hải Phòng do Delco làm nhà thầu thiết kế & xây dựng
MP Dinh Vu Industrial Zone
- Location: Dong Hai 2 Ward, Hai An District, Hai Phong.
- Area: 231 hectares.
- Operating time: 50 years (from 2008 – 2058)
- Occupancy rate: 100%
- Industries attracting investment: investment in high-tech product production, electrical assembly…
Do Son Industrial Zone
- Location: Ngoc Xuyen Ward, Do Son District, Hai Phong.
- Area: 150 hectares
- Operating time: 50 years (from 2004 – 2054)
- Occupancy rate: 50%
- Industries attracting investment: green technology projects, electronic equipment; tourism; fresh food, seafood, refined agricultural products; machinery for construction, industry, agriculture; packaging printing, interior/exterior decoration…
Trang Cat Industrial Zone – Urban Area
- Location: Trang Cat ward, Hai An district, Hai Phong.
- Area: more than 800 hectares.
- Operating time: 50 years (from 2020 – 2070)
- Industries attracting investment: information technology, clean, environmentally friendly industry…
Cau Cuu Industrial Zone
- Location: Quang Trung commune, An Lao District, Hai Phong.
- Area: 106 hectares.
- Operating time: 50 years (2020 – 2070)
- Occupancy rate: 60%
- Industries attracting investment: investment in production with high-tech products, electrical assembly…
Ben Rung Industrial Zone
- Location: Dinh Vu – Cat Hai Economic Zone, Quang Trung commune, An Lao District, Hai Phong.
- Area: 1964 hectares.
- Operating time: 50 years (2020 – 2070)
- Occupancy rate: 60%
- Industries attracting investment: shipbuilding, mechanical processing, machine manufacturing, energy industry, ports, warehouses..
List of industrial zones planned for the period 2021 – 2025
Thuy Nguyen Industrial Zone
- Location: Thuy Nguyen, Hai Phong
- Area: 319 hectares
Xuan Cau industrial and non-tariff zone
- Location: Cat Hai island district
- Area: 752 hectares
Nam Trang Cat Industrial Zone
- Location: Hai An District, Hai Phong
- Area: more than 200 hectares
Kien Thuy Industrial Zone
- Location: Kien Thuy District, Hai Phong City
- Area: 900 hectares
Vinh Quang Industrial Zone
- Location: Vinh Bao district, Hai Phong city
- Area: nearly 500 hectares
Tien Thanh Industrial Zone
- Location: Tien Lang district
- Area: more than 400 hectares
Tien Lang 1, 2 Industrial Zone
- Location: Tien Lang district, Hai Phong
- Area: nearly 1,000 hectares
Trang Due Industrial Zone (Phase 3)
- Location: An Duong District, Hai Phong
- Area: 687 hectares
Giang Bien 2 Industrial Zone
- Location: Vinh Bao district, Hai Phong
- Area: 350 hectares
An Hoa Industrial Zone
- Location: Vinh Bao district, Hai Phong
- Area: 200 hectares
An Hung – Dai Ban Industrial Zone
- Location: An Duong District, Hai Phong
- Area: 450 hectares
Cai Trap Island Industrial Zone
- Location: Cat Hai district, Hai Phong
- Area: 250 hectares
Sao Mai Industrial Zone
- Location: Tien Lang district, Hai Phong Area: 407 hectares
With a series of industrial zones that have been prepared for implementation, Hai Phong is forecasted that it will continue to be in the top supply of industrial real estate, attracting investors to build factories in Hai Phong in the future because of owning the largest lease land fund.
According to Hai Phong Economic Zone Management Board
See more: List of Industrial Zones in Vietnam – 2023
See more: Vietnam’s 2023 GDP and 2024 Growth Forecast
