Creating all favorable conditions for investors to develop industrial zones

On the morning of February 7, Mr. Le Van Thanh, Member of the Party Central Committee, Secretary of the City Party Committee, Chairman of the City People's Council worked with the industrial park infrastructure investors in order to solve difficulties and promote the attraction of the investment on industrial zones in the city and awardedthe investment certification to LG Display Vietnam Hai Phong Company Limited. Attending the meeting were Mr .Nguyen Van Tung, the City Party Committee Deputy Secretary, City People's Committee Chairman, Mr. Le Trung Kien, member of the Standing Committee of Hai Phong City Party Committee, Head of Hai Phong Economic Zone Authority, Mr. Pham Van Lap, member of the Standing Committee of the Party Committee, Secretary of Thuy Nguyen District Party Committee and the leaders of relevant departments, branches and localities.

Hai Phong currently has 12 industrial zones (IZs) which are investing, constructing and trading in infrastructure (including 8 IZs located in Dinh Vu - Cat Hai Economic Zones (EZs) with an area of ​​4,175 ha and 4 IZs outside economic zones the with an area of ​​762 ha).

According to the report of Hai Phong Economic Zone Authority (HEZA), during the past 30 years, IZs and EZs in the city have attracted 570 domestic and foreign projects (in which 403 FDI projects with total investment capital of USD 17.1 billion and 167 domestic investment projects with total investment capital of VND 145,885 billion equivalent to USD 6.2 billion). Foreign investment attraction (FDI) in the 5 years from 2016 to 2020 reachedUSD 8.7 billion, and increased by 47% compared to the period 2011-2015 (USD 5.9 billion), accounting for 53% of the total FDI, attractedsince the establishment the IZs.

Up to 2020, the IZs and EZs have accounted for nearly 80% of the industrial production value, over 70% of the city's export turnover, contributed to increase budget revenues and improved competitiveness and the ability of international integration of the city’s economy. In 5 years, from 2016 to 2020, the IZs and EZs in the city have contributed to the total state budget revenue (Customs duty and domestic revenue) VND 31,769 billion. In 2020, the state budget contribution reached VND 8,803 billion, equal to 88% compared to the same period last year, reaching 107% of the plan.

In the period of 2021-2025, HEZA will establish 15 new IZs with an area of ​​6,418 ha.

At the meeting, Chairman of the City People's Committee Nguyen Van Tung awarded the investment registration certificate to LG Display Vietnam Hai Phong Co., Ltd., which increased by USD 750 million and increased the total investment capital of the whole project to USD 3.25 billion, becoming the largest FDI project in Hai Phong city. The project is expected to start in March 2021 and will officially put into production in May 2021.

The LG company will recruit more 5,000 more workers; address housing needs for about 10,000 workers and specialists; and willannually contribute aboutUSD 5 millionto the state budget (personal income tax). Deeply be aware of the important project, HEZA and the city's departmentfully concentrated on solving investment procedures, granting investment registration certificates for the project in 5 days, demonstrating a very high determination in administrative procedure reform, improving the business investment environment, making Hai Phong become an important destination for domestic and foreign investors.

The investors and enterprises expressed their gratitude to the leaders of the city, HEZA and departments, sectors and localities over the past time for creating favorable conditions for dosmetic and foreign corporations and enterprises to invest successfully in the city. At the same time, they also outlined the difficulties such as clearance of land, investment procedures, impacts of the COVID-19 epidemic on production and business and proposed to the city some solutions to solve those problems in the coming time.

Speaking at the meeting, Mr. Le Van Thanh, Secretary of the City Party Committee, Chairman of the City People's Council highly appreciated the positive contribution ofIZs and EZs, including the important role of the HEZA and departments, branches, localities, infrastructure investors, enterprises for the general development of the city. He also affirmed that with the potentials and advantages of the city which was determined by the Central Government and the Resolution of the 16thCongress of the City Party Committee, in the coming period, industry will be focused to become the major and biggest economic sector of the city as well as be one of the city's three main pillars of economic development.

To achieve the set goal, the Party Secretary requested the City People's Committee, HEZA, sectors and localities to continue the administrative procedure reform to solve difficulties for IZs and EZs. He affirmed that Hai Phong city would create all favorable conditions for infrastructure investors to attract investment and also requested investors and businesses to comly with the approved planning, develop rapidly but be sustainable and not affect the environment.

Mr. Le Van Thanh also requested HEZA, departments, branches and localities to enhance management and supervision of foreign investors to fully understand and strictly obey the provisions of the law, especially in the fields of planning, land, construction to ensure modern and sustainable development of the city.
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