The Southern Coastal Economic Zone will become a new driving force for Hai Phong's development.

Thanks to sound policies, the Dinh Vu - Cat Hai Economic Zone, after 16 years of establishment, has developed vibrantly and effectively, ranking first in the country. To date, the Dinh Vu - Cat Hai Economic Zone has attracted over 19.7 billion USD in investment with more than 300 domestic and foreign projects.

According to Mr. Le Trung Kien, Head of the Hai Phong Economic Zone Management Board, as of the end of 2023, the Dinh Vu - Cat Hai Economic Zone's investment attraction efficiency reached US$1.81 million/hectare, the highest in the country. This economic zone achieved the highest budget revenue efficiency, contributing 11.82% to the state budget since its establishment. Simultaneously, the economic zone also attracted the largest workforce (over 185,000 people) with the highest income (an average of VND 11.5 million/person/month).

It can be affirmed that the Dinh Vu - Cat Hai Economic Zone has truly been a major growth engine, making a significant contribution to the economic restructuring and breakthrough development of Hai Phong. Many large investors are present here, deeply involved in the global value chain, such as projects by LG Group (over US$8.2 billion); VinFast automobile manufacturing complex (approximately US$7.6 billion), Bridgestone factories (US$1.2 billion), Regina Miracle International (US$1 billion), Pegatron (nearly US$900 million), SK (US$500 million), etc.

Electric cars are manufactured on a highly automated production line using world-leading technology at the VinFast Hai Phong automobile factory (Dinh Vu - Cat Hai Economic Zone). Photo: Thanh Son

Building on the success of the Dinh Vu - Cat Hai Economic Zone, Hai Phong City has carefully researched and prepared, proactively proposing to the Central Government the establishment of a second economic zone - the Southern Coastal Economic Zone. The formation of this second economic zone will expand the potential for breakthrough development, contributing to the realization of the goals and targets for the construction and development of Hai Phong and the entire Red River Delta region, as outlined in the Politburo's resolutions.

Over 30 years of implementing reforms and 15 years of implementing Resolution No. 32/NQ-TW of the Politburo have created new momentum and strength for the city. However, to develop Hai Phong to its full potential and position, it needs the attention of the Central Government and sufficiently 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 until 2030, with a vision to 2045, as a continuation of Resolution No. 32 on building and developing Hai Phong City during the period of industrialization and modernization of the country.

Accordingly, Resolution No. 45 clearly stated: "Focus on researching, evaluating, and analyzing mechanisms, policies, experiences, and best practices both domestically and internationally, especially those mechanisms and policies being applied in successful free trade zones around the world, in order to apply them appropriately to the conditions of Hai Phong."

To concretize 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 until 2030, with a vision to 2045, is "Developing coastal economic zones".

Therefore, establishing and developing the Southern Coastal Economic Zone, including a free trade zone model, is a concrete step in fulfilling the tasks set out in Resolutions 30 and 45 for Hai Phong. Establishing the Southern Coastal Economic Zone provides a suitable and feasible space to apply mechanisms and policies currently used in successful free trade zones around the world in Hai Phong.

Furthermore, the development of the Southern Coastal Economic Zone is entirely consistent with the Red River Delta Regional Planning 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 prioritized for investment. The Hai Phong City Planning for the period 2021-2030, with a vision to 2050, approved by the Prime Minister in Decision No. 1516/QD-TTg, also clearly identifies the breakthrough in port and logistics service development as "establishing the Southern Hai Phong Coastal Economic Zone, including research into a free trade zone with groundbreaking and outstanding mechanisms and policies currently applied in successful free trade zones worldwide."

At the 15th Conference of the Hai Phong City Party Committee, Mr. Le Tien Chau, Secretary of the Hai Phong City Party Committee, emphasized: “For many years, the main driving force of the city's growth has been the Dinh Vu - Cat Hai Economic Zone, but currently, the occupancy rate is nearly 80%. Therefore, at this moment, the most urgent and necessary task is to unlock new growth drivers, ensuring the future development of the city in the next 10, 15, and 20 years. With a decisive spirit and the highest effort, 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.”

The new driving force, the main and important one.

The Southern Hai Phong Coastal Economic Zone, covering approximately 20,000 hectares, is a multi-sector, third-generation ecological economic zone focusing on high-tech industries, seaports, modern logistics, and smart cities. By 2030, the Southern Hai Phong Coastal Economic Zone will become the main driving force of Hai Phong City's economy, equivalent to 80% of the capacity of the Dinh Vu - Cat Hai Economic Zone. This second economic zone will play a particularly important role in connecting with neighboring economic zones, forming a chain of coastal economic zones and acting as a driving force for the development of the entire region. Furthermore, the Southern Hai Phong Coastal Economic Zone is expected to contribute 550,000 billion VND to the national budget and create 301,000 jobs.

Perspective view of the planning for the Southern Hai Phong Coastal Economic Zone.

Strategically located as the northern gateway to the sea, Hai Phong is situated within the northern growth engine region (Hanoi - Hai Phong - Quang Ninh), part of the Kunming (China) - Lao Cai - Hanoi - Hai Phong - Quang Ninh economic corridor; the Nanning (China) - Lang Son - Hanoi - Hai Phong - Quang Ninh economic corridor; and the coastal economic corridor (Quang Ninh - Hai Phong - Thai Binh - Nam Dinh - Ninh Binh), playing a particularly important role. Developing the southern coastal economic zone is not only beneficial for Hai Phong but also creates regional development linkages, enhances national competitiveness, and maximizes the advantages of its strategic location and the gradually improving regional transportation infrastructure.

In addition, the coastal road running through the heart of the southern Hai Phong coastal economic zone is gradually taking shape. At the same time, the Ninh Binh - Hai Phong expressway, planned for completion before 2030, will help shorten the travel distance for goods from the northern coastal provinces and facilitate access to the Nam Do Son port.

Wharf at the international gateway port in Lach Huyen, Cat Hai. Photo: Viet Dung

In the context of developing an "open" economy, Hai Phong's potential extends to southwestern China, specifically Guangxi and Yunnan provinces, as the Ministry of Transport is currently developing a pre-feasibility study for a new railway line connecting Lao Cai - Hanoi - Hai Phong - Quang Ninh with Kunming, Yunnan province, China. Along with seaports, expressways, railways, and inland waterways, the southern coastal economic zone is also planning to build an international airport in Tien Lang district with a capacity of 12 million passengers per year.

The early establishment of the second economic zone is essential to "race" to attract the wave of investment from large domestic and foreign corporations and businesses 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 that implements high-level integration policies, creating a superior advantage in attracting foreign investment and being competitive in the region.

At the conference summarizing the 5-year implementation of Resolution 45-NQ/TW of the Politburo, Associate Professor Dr. Bui Tat Thang, former Director of the Institute for Development Strategy, Ministry of Planning and Investment, stated: “There are four main objectives to accelerate the establishment of a free trade zone in Hai Phong. These are: piloting new, more effective management models, mechanisms, and policies; creating a strong attraction for investment capital and promoting exports and industrialization; attracting high-quality labor; and accelerating the pace of infrastructure construction and urbanization. In addition, tax exemptions and reductions, along with streamlined 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, globally-scale projects, contributing to the diversification of Hai Phong's economy and accelerating the city's industrialization process.”