Attracting FDI in industrial parks: continuing to set a new record

EDITOR: THANH NHA - PHOTO: DUY LE

After many capital increases, LG Group's factory complex is the largest FDI project in Hai Phong with USD 7.24 billion. In the photo: LG Electronic Factory workers in production line.

According to Hai Phong Economic Zone Authority, in the first eight months of 2021, total FDI invested in industrial parks (IPs) and economic zones (EZs) reached more than USD 2.8 billion, more than 5 times higher than the same period in 2020, nearly completing the year 2021 plan. Under normal conditions, this result is remarkable, but under the context of COVID-19 pandemic spreading across whole country, this is a real miracle. With this momentum, Hai Phong will exceed the target of attracting FDI capital of USD 2.5-3 billion this year.

More large projects

With many potentials of Hai Phong expansion, from the beginning of 2021, LG Group (Korea) decided to continue pouring more USD 750 million at LG Display Factory (LGD) project in Trang Due Industrial Park, specializing in manufacturing products: OLED TV screen, plastic OLED screen for devices, LCD screens... This huge capital decision increased LGD's total investment capital to USD 3.25 billion, becoming a project with the highest foreign investment capital in Hai Phong City. Moreover, by August 31, LGD's investment increased by USD 1.4 billion, bringing total investment capital in Hai Phong to USD 4.65 billion. With this investment, company increased production of plastic OLED screen from 9.6 -10 million products/month to 13-14 million products/month. It is expected that export revenue will increase by about USD 6.5 billion /year contributing about USD 25 million /year to state budget, and creating more jobs for 10,000 workers. Up to now, LGD employs about 25,000 workers, and despite the pandemic, company has managed to maintain stable production, being one of the major contributors to city's budget. With this decision to increase capital at LGD, LG Group invested about USD 7.24 billion in Trang Due Industrial Park and is continuing to invest more billions USD.

In the past 8 months, Hai Phong has also had many projects to increase capital with tens of million USD such as: Project on Hiltron Technologies company in VSIP Industrial Park increased capital by USD 33.8 million; Ohsung Vina Company in Trang Due Industrial Park increased by USD 19 million; Fujimold Company in Nomura Industrial Park increased by USD 12 million; Tongwei Electronics Co., Ltd in An Duong Industrial Park increased by 31 million USD…

Among newly granted projects, there are some projects with quite large capital scale such as: Vision Best Holdings Company invested nearly USD 20 million to build a factory to process and manufacture mobile phone equipment in An Duong Industrial Park. Shanghai Moons Electronics Company implemented a project with USD 18 million at VSIP Industrial Park. In Nam Cau Kien Industrial Park, there are projects of Hangzhou GreatStar Company to process hand tools and measuring equipment with USD 18.5 million; Toyo Globe Vietnam factory with USD 15 million. In Nam Dinh Vu Industrial Park, there are projects of Yoshino Gypsum Co., Ltd. With USD 19.5 million; SLP Park Co., Ltd. with USD 17.2 million. Sunny Hose New Factory Project in Dinh Vu Industrial Park has just been licensed with USD 15 million…

Notably, attracting FDI capital in industrial parks and economic zones has been shifting from quantity to quality, focusing on attracting large-scale projects in terms of investment capital, using high, advanced and environmentally friendly technologies, products created with high added value in the global product chain of large economic groups and multinational companies over the world such as: LG Group (Korea) with 4 major projects (LG Display, LG Electronics, LG Innotek, LG Chem); Brigestone Group (Japan) with an investment capital of USD 1.224 billion USD; Regina Miracle (Hong Kong) with an investment capital of USD 900 million; Rorze Robotech with USD 426 million and some other big projects such as GE project (USA); Roze Roboted, Nipro Pharma, Kyocera, Fuji Xerox (Japan); USI with USD 200 million; Pegatron with USD 481 million …

Affirming attraction and belief about investment environment of Hai Phong City

The attractiveness of industrial parks and economic zones clearly showed the efforts to renew thinking, comprehensive reform, and drastic actions of Municipal Party Committee, Municipal People's Council, Municipal People's Committee, all levels and branches, who are always ready to meet the requirements of Investors. Secretary of Municipal Party Committee and Chairman of Municipal People's Committee spent a lot of time working with big investors, especially leaders of LG Group, Ren A Port Group... Typically as: LGD's USD 750 million capital increase is a big project, but Hai Phong Economic Zone Authority and city's agencies focused on handling investment procedures and granting investment registration certificates in just 5 day; next adjustment of capital increase for LGD with a total amount of USD 1.4 billion was also completed quickly, in only 3 days, showing great determination in reforming administrative procedures and improving the business investment environment, helping Hai Phong become an important destination for domestic and foreign investors. In particular, Hai Phong's success in preventing and controlling COVID-19 pandemic created admiration, great trust and investment desire of businesses.

According to Mr. Le Trung Kien, Head of Hai Phong Economic Zone Authority, in the complicated context of COVID-19 epidemic, investment promotion works were carried out methodically with clear innovation. From the beginning of 2021 until now, Hai Phong Economic Zone Authority has worked directly and online with hundreds of investors to provide information on business investment environment and preferential policies as well as call for investment in the City. At the same time, there is a close connection with Korea Trade-Investment Promotion Agency (KOTRA); Korea Business Association in Vietnam (KOCHAM); Japan Trade Promotion Organization (JETRO)… Hai Phong Economic Zone Authority is constantly innovating, reforming and strengthening the planning management, land and environment management; supporting secondary enterprises to solve difficulties and problems, especially labor, electricity, water and other essential services; organizing the implementation of project on solutions to ensure labor resources for Hai Phong IZs and EZs... Those efforts bring satisfaction to investors, therefore, more and more businesses, corporations want to invest in Hai Phong.

According to leaders of Hai Phong Economic Zone Authority, potentials to attract FDI investment of Hai Phong is still very large. Currently, there are many investors requesting to increase capital or invest in new projects such as: Regina Company proposed to increase capital by 100 million USD; Factory producing rare earth products of Shin- Etsu Company in Dinh Vu Industrial Park increased capital by more than USD 31 million; Pegatron Company proposed to invest USD 73 million in building worker housing; Greenwork Co., Ltd. proposed to implement a project on manufacturing and assembling garden machinery and equipment with USD 35 million in Nam Dinh Vu Industrial Park… LG Group is also looking forward to soon allocating land in Trang Due Industrial Park phase 3 to carry out new projects. Therefore, in the last months of this year, Hai Phong continues to accelerate the progress of site clearance as well as construction of industrial parks, focusing on Trang Due Industrial Parks phase 3, VSIP Industrial Park, Hai Phong International Gateway Port Industrial Park… From there, Hai Phong is always ready to have clean land with modern and synchronous infrastructure to welcome large investment flows into the City.

After nearly 30 years of construction and development, Hai Phong currently has 12 Industrial Parks which are investing, constructing and trading in infrastructure (including 8 Industrial Parks located in Dinh Vu - Cat Hai Economic Zone with an area of 4,175 ha and 4 Industrial Parks outside Economic Zone with an area of 762 ha). Industrial parks and economic zones in Hai Phong city have attracted 589 domestic and foreign projects (418 FDI projects with total investment capital of 17.37 billion USD and 171 domestic investment projects with total investment capital of VND 146,270 billion equivalent to USD 6.3 billion; creating jobs for nearly 170,000 employees, of which, more than 160,000 Vietnamese workers; and more than 5000 foreign workers. The average income of employees is VND 10.5 million /person/month. According to plan, the City will continue to develop 15 new industrial zones with an area of 6,418 ha.

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