Hai Duong Emphasis on foreign investment advances

You recently joined a delegation led by National Assembly Chairman Vuong Dinh Hue on an official visit to South Korea. How much interest did South Korean investors show in Hai Duong?

Pham Xuan Thang, member of the Party Central Committee and Secretary of Hai Duong Party Committee

During the visit, many South Korean groups expressed their interest in investing in Hai Duong. For its part, the province signed MoUs with Daewoo D&C, Korea Energy Agency, Korea Smart City Association, and Sein I&D, who wish to work with Hai Duong in urban and industrial zone (IZ) infrastructure development and smart city development.

In December 2021, the province’s major IZ developer Dai An JSC signed an investment cooperation agreement with Sein I&D Vietnam Co., Ltd to invest in Gia Loc Industrial Park (IP), an urban and service complex of over 490ha with a total investment capital value reaching $298 million. This is one of the solutions helping to bolster the charm of local enterprises engaged in IP infrastructure development, of whom Dai An JSC acts as a pioneer, aiding the province’s efforts to improve the investment environment as well as strengthen promotion activities.

Outside South Korean interest, Indian businesses have also been keen to invest in pharmaceutical and high-tech industrial infrastructure development in the province.

Hence, each provincial leader would be a key point for investment promotion. Hai Duong would focus on foreign direct investment (FDI) attraction not only in manufacturing or agriculture but across the board, from healthcare and education to trade and tourism, among others.

How has Hai Duong prepared to best serve investors?

Hai Duong has many advantages in terms of infrastructure to promote FDI attraction. By the end of 2020, the province was home to 10 IZs and 40 industrial clusters (ICs) with the occupancy rate surpassing 82 per cent.

In 2021, six new IZs were completed with a total area of 1,176ha, along with several ICs. In general, the province’s total industrial land area available for investment now exceeds 2,000ha. They are all qualified to welcome investors from the beginning of 2022.

Before 2030, Hai Duong will be developing 15 new IZs over 10,000ha in total industrial land area, especially a pivotal industrial development centre in Binh Giang and Thanh Mien districts, which connects with Hanoi-Haiphong Expressway, only 25 minutes by car from Hanoi.

Simultaneously, the province is proposing the government on economic zone establishment in the locality with a raft of incentives. In particular, we are launching the construction of two more intersections connecting to Hanoi-Haiphong Expressway in Binh Giang and Thanh Ha districts, helping tackle traffic congestion in many areas.

Hai Duong has been well-prepared for foreign investment attraction in terms of infrastructure and transport connections. In addition, the plentiful labour supply, reasonable rental price, and administrative procedure reforms are valued advantages that help the province to draw investors.

How can foreign investors help promote Hai Duong’s image to a wider audience?

The province currently operates 492 foreign-invested projects valued at nearly $9.23 billion in total committed capital. The investors have come from 26 countries and territories, led by Japan and South Korea. Some of them have raised investment volume for production and business expansion many times over, including Ford Vietnam, Hyundai Kefico Co., Ltd., Japanese-backed Sumidenso Co., Ltd., and others that have been Hai Duong’s long-term companions for many years.

Hai Duong is one of the localities taking the lead in the country when it comes to infrastructure preparation and development to compete head-on with other cities and provinces in the vicinity.

Besides that, Hai Duong also facilitates legal setup, quickly resolving problems related to administrative procedures and labour management. The provincial leaders are also ready to propose to central management agencies seeking ways to tackle the obstacles facing the investors. Amid the pandemic complexities, Hai Duong has prioritised inoculating foreign experts and employees, as well as workers at IZs and factories to maintain business continuity.

Which factors have made Hai Duong an attractive destination to such investors?

Primarily, it is the province’s consistent policy in investment attraction synchronisation, focusing on planning and infrastructure development, particularly inter-regional transport infrastructure. The province is always proactive in labour resources with over 60 per cent of people of working age (about 1.4 million people) who are highly skilled, along with putting the focus on administrative procedure reform, preparing necessary conditions to welcome foreign capital inflow to the province.

Secondly, we don’t attract foreign investment at any cost, but on a selective and sustainable basis. The guiding policy is not achieving economic development at any cost, but gearing investment attraction towards serving sustainable development, green growth, environmental protection, and ensuring the harmony of the interests of the state, businesses, and the people.

Third is giving all-sided support to investors and businesses – from reforming investment promotion, ensuring consistent management in tackling difficulties during project implementation, to maintaining social order and security. This aims to make businesses and investors feel secure when doing business in the province.

Last but not least, leaders at all levels and sectors don’t hold a subjective view, but always frankly look into limitations, from there providing solutions and orientations effectively, serving Hai Duong’s long-term and sustainable development and leveraging the province’s advantages.

What were the highlights of provincial successes in development last year?

Thanks to the proactive implementation of pandemic prevention and control measures, simultaneously breaking bottlenecks, Hai Duong’s growth reached 8.6 per cent in 2021, exceeding the set target. Such growth ranked eighth out of 63 cities and provinces nationwide, and placed fourth out of 11 localities in the Red River Delta, after Haiphong city, and the provinces of Quang Ninh and Ha Nam. The growth in the agriculture, forestry, and fishery sector reached 6.8 per cent; that of industry and construction rose 13.5 per cent; and the services sector expanded 0.8 per cent. Taxes and product subsidies increased by 7.6 per cent. Budget revenue reached $915 million, exceeding the estimate by 62 per cent.

The scale of Hai Duong’s economy is estimated at $6.48 billion in 2021, ranking 11th in the country, with regional GDP per capita fetching around $3,350, ranking 16th.

The bright spot in the province’s economic development in 2021 was the significant increase in agricultural production output of most crops, along with stable poultry production and pig herd rebounds. Industries such as textiles and garments, iron and steel, and automobiles and auto parts all increased too.

Significantly, two turbines at the Hai Duong build-operate-transfer thermal power project will be fully running from this February, entailing a 52.7 per cent hike in the province’s electricity production.

In 2022, Hai Duong is set to take on the approach of flexible adaptation for breakthrough growth. What goals and solutions are attached to realise this vision?

This year, Hai Duong has boldly set a target of reaching double-digit growth of at least 10 per cent. We have basically completed forming and revising district-level planning, general urban planning, and provincial planning for the rest of the decade, with a vision to 2050.

Efforts also gear towards building a land-use master plan with a fresh development mindset and breakthrough vision, focusing on crafting programmes and projects to implement the resolution of the Party.

Hai Duong has made careful preparations for implementation of public and foreign investment projects. The state budget has been actively prepared and would be disbursed at the beginning of 2022, channelling into a series of key projects with a total capital value reaching tens of millions of US dollars.