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JLL: Hai Phong a 'hot' location for industrial investment

Released at: 18:12, 25/04/2019

JLL: Hai Phong a 'hot' location for industrial investment

Photo: JLL Vietnam

Latest JLL report notes positives for northern port city's development.

by Ngoc Lan

Northern Hai Phong city has been viewed as a “hot” location for industrial investment over recent years after attracting a large amount of FDI, which garnered attention and support from authorities and was supported by a major infrastructure boom and numerous government incentives, according to JLL’s “Northern Vietnam: A Vision for Growth” report released on April 25.

Given its proximity to China, just 200 km from the border, Hai Phong is widely regarded as a China+1 manufacturing base in ASEAN to take advantage of the China-ASEAN FTA.

The Hai Phong Economic Zone, which offers companies preferential treatment when they set up operations, is also acting as a catalyst to tempt more investors to the region.

The city is one of five in Vietnam, with direct connections to central authorities. Home to nearly 2 million people, it is the third-largest city in the country, after Ho Chi Minh City and Hanoi.

Its rapid urbanization has underpinned its exceptional growth over the last five years. Located along the main economic corridor on the northeast coast, Hai Phong is set to become the main gateway for imports and exports in the northern region, which will provide companies with easy access to the transporting of goods globally.

Hai Phong’s infrastructure has also undergone significant improvements through the completion of three core projects: the Hanoi - Hai Phong Expressway, the Tan Vu - Lach Huyen Highway, and Dinh Vu - Cat Hai Bridge. By facilitating links to the Hanoi - Lao Cai Expressway, these projects will help reduce travel times between the northern border province of Lao Cai and the Hai Phong International Gateway Port (HIGP) to approximately six hours.

The central government has also shown its commitment to continuing Hai Phong’s exponential growth by offering numerous special tax incentives, which have paved the way for it to become a foreign investment magnet.

The constant improvement of Hai Phong’s Provincial Competitiveness Index (PCI) demonstrates authorities’ continued efforts to enhance the business environment, which will further bolster the city’s attractiveness.

The report also noted that Hai Phong is gearing up to become an internationally-recognized trading hub and a driving force for development in northern Vietnam.

Mr. Stephen Wyatt, Country Head of JLL Vietnam, said there are many examples of port cities around the world, including London and Amsterdam, which once developed successfully can drive economic activity and serve as a crucial connection between sea and land transport. “Hai Phong has all the necessary ingredients to develop into a true global port city, and with continued investment in the development of new roads, improvements to the city’s traffic management and rail and inland waterways, increases to workplace productivity, efficient customs and administrative procedures, development of support industries, and the embrace of innovation and technology, we firmly believe that Hai Phong has a vision for growth that is set to continue for many years to come,” he added.

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