Hai Phong chases $500m foreign investment

News - Industrial zones (IZs) and Economic Zones (EZs) in the northern port city of Hai Phong aim to boost both foreign and domestic investment significantly this year.

Specifically, they aim to attract US$500 million in foreign direct investment (FDI), a 42 per cent increase over last year, while domestic direct investment (DDI) was expected to reach VND8 trillion ($381 million), a 21 per cent increase over 2011, said the city's head of IZs and EZs Management Board Pham Thuyen.

FDI enterprises operating in the EZs and IZs would strive to achieve $1.38 million in turnover, 20 per cent more than last year. An 82 per cent increase in DDI was expected, equivalent to VND10 trillion ($476 million), he said.

This year, the global economy was forecast to continue coping with difficulties while the domestic economy would also have a tough year, Thuyen said, adding that the set targets would be achieved despite of the challenges because the city had attracted a huge inflow of FDI, especially from Japan.

Last year, the city attracted $910 million in FDI capital, nearly double the set target and six times higher than 2010. FDI investment from Japan accounted for two-thirds of the total investment in which EZs and IZs attracted $600 million.

Bridgestone is investing $497 million for the first phase of a radial tyre production plant in the Dinh Vu IZ.

Covering 1.02 million sq.m, a full one-third of the IZ's area in the second phase, the plant will serve as an export base for replacement tyres sold in the European, North American, and Japanese markets. Production will primarily focus on passenger car radials.

Bridgestone said the plant would be its largest and most modern plant in the world.

Dinh Vu Polyester Fibre Plant will also become operational this year.

A representative from the Dinh Vu IZ said that last year it had attracted seven projects with $67 million in total investment. Three of the projects totalling $40 million were funded by Japanese investors.

Other IZs including Trang Due, Viet Nam-Singapore Industrial Park (VSIP), Nam Cau Kien and Do Son are equipped with the infrastructure and waste water disposal plants to receive FDI.

The city submitted a request to Prime Minister Nguyen Tan Dung to build a 1,000ha specialised IPs in the Dinh Vu-Cat Hai IZ in Hai An District for Japanese investors. The IZ aims to attract investment in clean and hi-tech.

Several plants have begun expansions in the Nomura and Dinh Vu IZs.

The city has been in a rush to ensure the progress of key projects including the Ha Noi-Hai Phong Expressway, road No 365 to Dinh Vu IZ and dredging in the Hai Phong Port for vessels of up to five million tonnes.

It also approved a project to build a vocational training school funded by Japanese ODA to provide high quality labour forces for IZs and EZs.