FDI Inflows Soar in Haiphong
HANOI – In the first quarter of 2014, the northern port city of Haiphong attracted more than US$235 million in FDI. The city licensed 11 newly registered projects and saw five existing projects register to increase their level of investment capital. The projects’ investment areas included support industries, housing construction, services, trade and automobile spare parts manufacturing.
As of February 2014, the port city had 400 effective FDI projects worth US$8 billion in total registered capital.
Haiphong, which can be translated as “coastal defense,” is Vietnam’s third largest city and is the most important seaport in Northern Vietnam due to its large marine facilities and deep water harbor.
The northern port city of Haiphong is located in a particularly advantageous location for companies looking to produce goods intended for export. Haiphong ranks first in the country in terms of seaport services and has easy access to land, railway and waterway routes.
Historically, Haiphong has been unable to attract a high level of investment – the projects it was able to attract tended to be small. However, due to a proactive city government, the Haiphong of today’s world has seen a drastic turnabout in its financial fortunes. The city now attracts the second most FDI in the country, ranking just behind the province of Binh Duong. Ho Chi Minh City ranks third in FDI.
In particular, Haiphong has attracted large projects from Japan and the Republic of Korea, such as LG, Fuji Xerox, Nipro Pharma, Bridgestone and Kyocera. These have been projects with a high added value arising from their use of high technology and manufacturing techniques. These initial projects have created a highly attractive investment environment for other international corporations.
Haiphong has 12 industrial zones, the most successful being Nomura, which has leased out its entire operating space. Other prominent zones include the Vietnam-Singapore Industrial Park (VISIP), Trang Due Industrial Zone and Dinh Vu-Cat Hai Industrial Zone.
The Haiphong government has stated that the city’s goal for 2014 is to attract US$1.2 billion in FDI.
In order to meet this goal, the city has announced that it will give priority to:
- Environmentally friendly projects;
- Support industry projects; and
- Projects with high added value.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam in addition to alliances in Indonesia, Malaysia, Philippines and Thailand as well as liaison offices in Italy and the United States.
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