Haiphong yields strong investments

Haiphong city - illustration photo source:zing.vn

According to the Haiphong Department of Planning and Investment, as of September 12, 2016, the city has lured more than $2.7 billion in foreign direct investment (FDI) capital, committed towards 34 new and 25 existing projects seeking supplemental capital, taking the lead nationwide.

Notably, the city’s FDI has experienced a remarkable quality improvement, with most projects employing cutting-edge and environmentally-friendly technologies, concentrated in high-tech, processing industries, and the production of electronic equipment and components.

The most sizable project in the city is the $1.5 billion South Korean LG Display project at the city’s Trang Due Industrial Park (IP). The project will produce and process plastic OLED screens for many items such as smart phones, smart watches, and laptops.

Most recently, the IP welcomed LG Innotek Co., Ltd. who have received an investment certificate to implement a $550 million LG Innotek Haiphong camera module plant, which is LG’s third project in Haiphong.

Other noteworthy investments include a $42 million project producing components for washing machines, fridges, and motorised vehicles by South Korea’s SL Electronics Co., Ltd.; a $200 million solar energy glass plant by Hong Kong’s Flat Company Limited; a $250 million high-standard drug production plant by Japan’s Nipro Pharma; and a $119 million printer, photocopier, and multi-function device plant project by Japan’s Fuji Xerox.

In addition to the newly-licensed projects, a raft of others asked for supplemental capital. The most significant of these was UK’s Bridgestone tire manufacturing plant project, which increased its investment capital from $574.8 million to $1.2 billion. Additionally, the project by Hong Kong’s Regina Miracle International Ltd. making lingerie, sportswear, and shoes at the Vietnam-Singapore Industrial Park (VSIP) Haiphong, raised its investment from $150 million to $235 million.

According to Le Trung Kien, director of the Haiphong Department of Planning and Investment, the city is currently home to 478 active foreign invested projects worth more than $13.611 billion.

Foreign investors in the city’s coastal economic zone (EZ) have enjoyed numerous tax incentives specifically earmarked for EZ-based investors. These include a four-year corporate income tax exemption and a 50 per cent reduction in the following nine consecutive years after incurring taxable income. A 50 per cent personal income tax reduction is also available.

The city has also concentrated on accelerating the construction of infrastructure projects at Dinh Vu-Cat Hai EZ, Trang Due IP, Dinh Vu IP, and specialised IPs for Japanese and Korean investors.

Haiphong is now home to a comprehensive infrastructure system. The $2 billion Hanoi-Haiphong expressway, which is regarded as Vietnam’s most modern highway, was opened to traffic late last year. Cat Bi International Airport was put into operation in early May after more than two years of upgrade work. Haiphong International Gateway Port, which once completed will be the north’s largest deep-water port, associated important component projects in building Tan Vu-Lach Huyen Highway and Bridge, and National Highway 10 expansion are now under intensive construction for proposed completion in late 2017.

Haiphong is also focusing on training high-quality human resources to meet investors’ burgeoning demand. Due attention has been paid to investment promotion in an effective manner, with emphasis placed on sizable projects producing items of high added value, and employing eco-friendly technologies to ensure sustainable development.