FDI attraction: Motivation for the city’s "take off"
City People's Committee Chairman Duong Anh Dien confirmed, in the context of severe difficulties in 2012 which was considered the most difficult one in the past 10 years, the city had gained important achievements in some areas in which FDI was a "bright spot". Hai Phong was ranked 2nd nationally in terms of FDI attraction. This contributed positively to local socio-economic development.
Growing better
While the national FDI attraction in the first eight months declined, Hai Phong’s increased dramatically, both in terms of "quality" and "quantity". The city has never received such a great number of economic groups including corporations who are doing the first investment abroad or in Vietnam, but they have chosen Haiphong with big investments of hundreds of USD millions. They are Bridgestone doing car tire factory project in Dinh Vu Industrial Zone with an investment of more than USD 575 million; Nipro Pharma Corporation investing in a drugs and medical equipment factory with a capital of USD 250 million in Hai Phong VSIP. This is the group's first factory in a foreign country with the world's leading innovative technology. Another major project is the factory to manufacture copiers and printers of Fuji Xerox Corporation with a total capital of USD 119 million. Last year, the city also attracted a large-scale project in the same field from Kyocera Mita Corporation costing USD 187 million. Shortly afterwards, the investor deployed factory building, and now the construction is basically completed. The factory is expected to be under operation in lately this year. Notably, all those projects are invested by Japanese businesses. This is thanked to the Japanese’s love to the country and people of Vietnam and the strategic cooperation between the two countries which are the foundation for sustainable bilateral cooperation and development. The presence of the world's leading business groups in Hai Phong proves the port city's potentials interested by the investors. Additionally, many small and medium businesses in support industries, with high technology from Japan are now interested in doing business in Hai Phong. The city is promoting to build supporting IPs to welcome Japanese investors.
In addition to large projects from Japanese investors, the city received various investors from other countries and regions such as Switzerland, the Czech Republic, Australia etc. visiting to explore local market and seek for investment opportunities in the city.
Opportunities
If as before, the FDI in the industrial sector was mostly small-scale projects with such modest initial capitals as tens of USD millions, and many projects failed to meet requirements on technology standards, equipments, then now, the city is having great opportunities to choose from. City leaders are determined to reject a number of projects with a large-scale investment, but risky referring to environmental pollution and outdated technologies. The projects without investment incentives and no prohibition, low value-added and low investment rate projects and the ones on large land areas are to be scrutinized and at the risk of being denied. Industrial projects are provided with investment guidelines and gathered in the local industrial zones with available infrastructure and wastewater treatment systems as well as other services up to the investor’s requirement.
The actual success of the FDI enterprises in recent years with strong growths is the best answer to attract further FDI projects to the city this year and the following years. Many businesses like Toyta Boshoku, Toyda Gosei, Pioneer etc. have many times raised tens of USD millions in their investment capital. GE leaders from the U.S., investing in Nomura-Haiphong Industrial Zone, in an interview on Vietnam Television recently absolutely confirmed their right investment choice in Vietnam - Hai Phong and they only needed 27 seconds to make the decision. Recently, GE has decided to increase USD 43 million capital to the plant in Haiphong.
Hai Phong is now having great opportunities for foreign investments. The city is actively improving its infrastructure system. When the projects are completed in two or three years, Hai Phong will be not only a destination for investors in the field of industrial production, but also a destination for tourism and culture.
For the first eight months, the city has attracted 20 new FDI projects with a total capital of USD 1,037.5 million; 18 projects increased by USD 77.64 million. Total new and added FDI capital is USD 1,115.15 million, an increase of 2.24 times over the same period last year, reaching 111.5% of the yearly plan. Hai Phong ranked second nationally, behind Binh Duong province in FDI attraction. Most FDI projects in Hai Phong are in high-tech industries from the world's leading corporations, that is in conformity with the local investment orientation.