Dinh Vu - Cat Hai Economic Zone - a stepping stone for development

Established in 2008 under Decision No. 06/2008/QD-TTg of the Prime Minister, Dinh Vu - Cat Hai Economic Zone (EZ) has become a great growth driver, contributing significantly to promoting Hai Phong's development towards industrialization and modernization.

DEEP C Hai Phong Industrial Park Complex (Dinh Vu - Cat Hai Economic Zone). Photo: Huy Dung

With the right policies, Dinh Vu - Cat Hai Economic Zone after 16 years of establishment has developed vigorously and effectively, leading the country. Up to now, Dinh Vu - Cat Hai Economic Zone has attracted investment of more than 19.7 billion USD with more than 300 domestic and foreign projects.

According to Mr. Le Trung Kien, Head of the Hai Phong Economic Zone Management Board, by the end of 2023, the investment capital attraction efficiency of Dinh Vu - Cat Hai Economic Zone will reach 1.81 million USD/ha, the highest in the country. This economic zone has the highest budget collection efficiency, with a state budget contribution rate of 11.82% since its establishment. At the same time, the economic zone also attracts the largest workforce (more than 185,000 people), with the highest income (average 11.5 million VND/person/month).

It can be affirmed that Dinh Vu - Cat Hai Economic Zone has truly been a major growth driver, making an important contribution to the economic restructuring process and the breakthrough development of Hai Phong. Here, there are the presence of many large investors, deeply participating in the global value chain such as projects of LG Group (over 8.2 billion USD); VinFast automobile manufacturing complex (about 7.6 billion USD), Bridgestone factories (1.2 billion USD), Regina Miracle International (1 billion USD), Pegatron (nearly 900 million USD), SK (500 million USD)...

Electric cars are produced on a highly automated production line with world-leading technology at the VinFast Hai Phong Automobile Factory (Dinh Vu - Cat Hai Economic Zone). Photo: Thanh Son

From the success of Dinh Vu - Cat Hai Economic Zone, Hai Phong City has researched, prepared carefully, and proactively proposed to the Central Government to establish a second economic zone - the Southern coastal economic zone. When this second economic zone is established, it will expand the space for breakthrough development, contributing to realizing the goals and targets for the construction and development of Hai Phong and the entire Red River Delta according to the Resolutions of the Politburo.

More than 30 years of implementing the renovation process, 15 years of implementing Resolution No. 32/NQ-TW of the Politburo have created new positions and strengths for the city. However, to develop Hai Phong in line with its potential and position, it requires the attention of the Central Government and strong and appropriate policies and mechanisms. Therefore, on January 24, 2019, the Politburo issued Resolution No. 45-NQ/TW on building and developing Hai Phong City to 2030, with a vision to 2045, as a continuation of Resolution No. 32 on building and developing Hai Phong City in the period of national industrialization and modernization.

Accordingly, Resolution No. 45 clearly stated: "Focus on researching, evaluating, and analyzing mechanisms, policies, experiences, and good practices domestically and internationally, especially mechanisms and policies being applied in successful free trade zones around the world so that they can be applied appropriately to Hai Phong's conditions."

To specify Resolution 45, one of the contents stated in Resolution 30/NQ-TW of the Politburo on socio-economic development and ensuring national defense and security in the Red River Delta region to 2030, with a vision to 2045, is "Developing coastal economic zones".

Therefore, the establishment and development of the Southern coastal economic zone, including the free trade zone model, is a concrete step to realize the tasks set forth in Resolution 30 and Resolution 45 for Hai Phong. The establishment of the Southern coastal economic zone is a suitable and feasible space to apply the mechanisms and policies currently applied in successful free trade zones in the world in Hai Phong.

In addition, the development of the Southern coastal economic zone is also completely consistent with the planning of the Red River Delta region for the period 2021-2030, with a vision to 2050 approved by the Prime Minister in Decision 368/QD-TTg and is included in the list of important projects in the region that are prioritized for investment. The planning of Hai Phong city for the period 2021-2030, with a vision to 2050 approved by the Prime Minister in Decision 1516/QD-TTg also clearly identified the breakthrough in the development of seaports and logistics services as "establishing the Southern coastal economic zone of Hai Phong, including studying a free trade zone with breakthrough and outstanding mechanisms and policies that are being applied in successful free trade zones in the world".

At the 15th Hai Phong City Party Committee Conference, Mr. Le Tien Chau, Secretary of the Hai Phong City Party Committee, emphasized: “For many years, the main growth driver of the city has been the Dinh Vu - Cat Hai Economic Zone, but currently the occupancy rate is nearly 80%. Therefore, at this time, the very urgent and necessary task is to open up a new growth driver, ensuring the future development of the City in the next 10, 15, 20 years. With a spirit of determination, highest effort, and acceleration, the City has urgently completed the Project to establish the Southern Coastal Economic Zone to submit to the Central Government for consideration and approval in 2024”.

New, important driving force

The Southern Coastal Economic Zone of Hai Phong has an area of ​​about 20,000 hectares - a multi-industry 3.0 generation ecological economic zone, focusing on high-tech industry, seaports, modern logistics and smart cities. By 2030, the Southern Coastal Economic Zone of Hai Phong will become the main driving force of the Hai Phong city economy, equivalent to 80% of the capacity of Dinh Vu - Cat Hai Economic Zone. The second economic zone will play a particularly important role in connecting with neighboring economic zones, forming a chain of coastal economic zones, serving as the driving force for the development of the whole region. In addition, the Southern Coastal Economic Zone is also expected to contribute VND 550,000 billion to the budget and create 301,000 jobs.

Perspective of planning of Hai Phong Southern Coastal Economic Zone

With its strategic location, the gateway to the sea of ​​the North, Hai Phong is located in the Northern growth engine area (Hanoi - Hai Phong - Quang Ninh), belonging to the economic corridor of Kunming (China) - Lao Cai - Hanoi - Hai Phong - Quang Ninh; the economic corridor of Nanning (China) - Lang Son - Hanoi - Hai Phong - Quang Ninh; the coastal economic corridor (Quang Ninh - Hai Phong - Thai Binh - Nam Dinh - Ninh Binh), playing a particularly important role. Building a coastal economic zone in the South is not only for Hai Phong but also creates regional development linkages, increases national competitiveness, makes the most of the advantages of its strategic location and the gradually improving regional transport infrastructure.

In addition, the coastal route through the center of the southern coastal economic zone of Hai Phong is gradually taking shape. At the same time, the Ninh Binh - Hai Phong expressway, planned to be completed before 2030, will help goods from the northern coastal provinces shorten the connection distance and facilitate connection with Nam Do Son port.

Wharves at the International Gateway Port in Lach Huyen, Cat Hai. Photo: Viet Dung

In the trend of developing an “open” economy, Hai Phong’s space can also open up to the Southwest region of China, directly to the two provinces of Guangxi and Yunnan when the Ministry of Transport is building a Pre-Feasibility Study Report on the construction of a new railway line Lao Cai - Hanoi - Hai Phong - Quang Ninh connecting with Kunming, Yunnan province of China. Along with seaports, highways, railways, inland waterways, in the Southern coastal economic zone, an international airport is planned to be built in Tien Lang district, with a capacity of 12 million passengers/year.

The early construction of the second economic zone is essential to “race” to welcome the “wave” of investment from large domestic and foreign corporations and enterprises heading to Hai Phong, especially in the chip, semiconductor and electronics industries. At that time, the Southern coastal economic zone will be the only place in Vietnam to date implementing high integration policies, creating outstanding advantages to attract foreign investment, and being competitive enough in the region.

At the conference to review 5 years of implementing Resolution 45-NQ/TW of the Politburo, Associate Professor, Dr. Bui Tat Thang, former Director of the Institute of Development Strategy, Ministry of Planning and Investment said: “There are 4 main goals to accelerate the establishment of the Free Trade Zone in Hai Phong. That is, piloting new models, mechanisms, and more effective management policies; creating strong attraction of investment capital flows and promoting exports and industrialization; attracting high-quality labor; accelerating the pace of infrastructure construction and urbanization. In addition, tax exemption and reduction policies, minimizing regulations and administrative procedures will create a favorable investment environment, making the Hai Phong Free Trade Zone an attractive project, attracting and stimulating large foreign investors to invest in new, high-tech projects of global scale, contributing to the diversification of Hai Phong's economy and accelerating the industrialization process of the City”.

Source: https://baodautu.vn/south-side-of-the-sea-economic-zone-will-tro-thanh-dong-luc-phat-trien-moi-cua-hai-phong-d221499.html