Hai Phong, 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 is located in a particularly advantageous location for companies looking to produce goods intended for export. Hai Phong ranks first in the country in terms of seaport services and has easy access to land, railway, and waterway routes.
Today, Hai Phong has undergone a dramatic turnabout in its financial fortunes thanks to the local government’s supportive investment policies. The city now attracts the second most FDI in the country, ranking just behind the province of Binh Duong.
Hai Phong is situated on the northeastern coast of Vietnam, just 120 km east of Hanoiand 200 km from the Vietnam-China border gate. The city is also a key transportation hub in the north and for the nation as a whole.
With the largest seaport in the north, Hai Phong serves as an important gateway city to the northern provinces of the country. The city’s strategic location of “two economic corridors-one economic ring” situated between Vietnam and China makes it a center for industry, commerce, services, and tourism for Vietnam and particularly for the northern coast area.
Hai Phong features a humid subtropical climate, with hot humid summers and warm, dry winters.
Agriculture, forestry, and fishing:
As of 2007, one-third of Hai Phong’s labor force was employed in agriculture, forestry and fishing industries. Gross output in these sectors has been increasing significantly over the previous years.
According to the Hai Phong government, 80 percent of the city’s land area is used for rice production. Other agricultural products include maize, sugar, and peanuts. In the same year, gross output in the fishing sector was 79,705 tons, this amount almost doubled between 2000 and 2007.
Hai Phong is more known as a busy port city rather than a tourist destination. Despite this, the city has many famous temples, pagodas and shrines as well as the famous historic site of Bach Dang River.
Do Son Beach, which is 20 km from the city center, is the most well known site in the area. From there, tourists can continue on the tourist trail to Cat Bai National Park and Ha Long Bay.
Hai Phong is pushing ahead with its main economic focus centering on the areas of food processing, light industries, and heavy industries. Major products with the fastest growth include shipbuilding, steel pipes, plastic pipes, and textiles. In 2012, the city’s growth rate was 8.12 percent.
Hai Phong currently has 18 industrial parks in which the Vietnam Singapore Industrial Park (VSIP), established in January 2010, is the largest. Many multi-national investors have built their factories in the area, these include Kyocera, Fuji Xerox, Nipro Pharma, LG, and Bridgestone. The total registered investment capital was US$268.2 million in 2014.
|Area||582 sq miles (1519 km2)|
|Population||1,908 million (2013)|
|GDP (per capita)||US$2,064 (2013)|
|Literacy Rate||96% (2011)|
|FDI||US$2 billion (2013)|
|Principal Languages||Vietnamese, English|
The Hai Phong Thermal Power Plan 1 was put into operation in 2011, with an annual electricity output of 3.6 billion kWh. The two-turbine Thermal Power Plant 2, with a designed capacity of 600 MW, was fully connected to the national grid on February 2014.
The two plants are responsible for providing electricity to local factories’ production processes.
Cat Bi Airport, located five kilometers Southwest of the city, is a standby airport for Noi Bai International Airport. The airport serves three daily flights to Ho Chi Minh Cityand five weekly flights to Da Nang.
Cat Bi Airport is currently in the process of a US$174 million upgrade. The project’s main components are: areas for planes, terminals, and control systems. It is expected to be fully operational in September 2015 and will meet 4E international airport standards.
The Hanoi-Hai Phong high-speed railway has recently finished its planning stages and construction will soon begin on the new transportation network. The railway is intended to meet the increasing demand for cargo transportation to the Hai Phong International Gateway port.
Hai Phong Port is one of the largest ports in Vietnam. It carries 40 percent of the total waterway transport cargo volume of the northern provinces.
The port of Hai Phong is divided into three main docks: Hoang Dieu (near the city center), Chua Ve, and Dinh Vu (downstream to the east). Lach Huyen International Gateway Port is currently under construction. It is located 15 km from the current port and is expected to be one of the deepest ports in Vietnam with a draft of 14 meters, and capable of receiving ships up to 100,000 DWT.
The National Highway No. 10 links Haiphong to the provinces of Quang Ninh, Thai Binh, and Thanh Hoa.
New Highway No.5, which connects Hanoi and Hai Phong, and goes to the Hai Phong International Gateway Port at Lach Huyen, has been under construction since 2008. The 105 km highway is expected to begin operations in 2015.
Additionally, the government has also approved a highway project that will connect Hai Phong with the other northern coastal provinces.
In the first quarter of 2014, the northern port city of Haiphong attracted more than US$235 million in foreign direct investment (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. In 2013, Haiphong attracted almost 30 FDI projects worth a total US$2 billion in registered capital. This amount represented a 60 percent increase year-on-year (Y/Y).
The Haiphong government’s goal for 2014 was to attract US$1.2 billion in FDI. In order to meet this goal, the city announced that it would give priority to:
Hai Phong currently has 18 industrial zones, these include:
1. NUMORA Industrial Park
Location: Huyện An Dương, TP. Hải Phòng
Area: 153 ha
2. ĐÌNH VŨ Industrial Park
Location: Q.Hải An -TP. Hải Phòng
Area : 945 ha
3. TRÀNG DUỆ Industrial Park
Location : Huyện An Dương, TP. Hải Phòng
Area : 349 ha
4. NAM CẦU KIỀN Industrial Park
Location : Huyện Thủy Nguyên – Hải Phòng
Area : 268, 32 ha
5. ĐỒ SƠN Industrial Park
Location : Thị Xã Đồ Sơn – Hải Phòng
Area : 150 ha
6. VINASHIN - SHINEC (SIP) Industrial Park
Location : Huyện Thủy Nguyên - Thành phố Hải Phòng
Area : 320 ha
7. AN DƯƠNG Industrial Park
Location : Huyện An Dương – Hải Phòng
Area : 812,62 ha
8. CỤM CÔNG NGHIỆP TÂN LIÊN
Location : Huyện Vĩnh Bảo – TP Hải Phòng
Area : 153, 3 ha
9. GIA MINH Industrial Park
Location : Huyện Thủy Nguyên – Hải Phòng
Area : 123,7 ha
10. TRÀNG CÁT Industrial Park
Location : Quận Hải An – Hải Phòng
Area: 770, 79 ha
11. Vietnam Singapore Industrial Park
Location: Đình Vũ, Cát Hải, Hải Phòng
Area: 1,600 ha