Producing cars at VinFast Automotive Manufacturer (VinFast)
In 2020, Hai Phong achieved a GRDP growth rate of 12.23%, four times higher than national average and is one of provinces with the highest economic growth rate of country. This result marked Hai Phong's efforts in improving business and investment environment.
Removing "bottlenecks"
At the beginning of 2015-2020 term, in the first conferences, Hai Phong City Party Committee analyzed city’s socio-economic situation. Municipal Party Committee shared the same concerns: Hai Phong has a special geo-economic position, has the largest seaport in the North, and has been a locality with many breakthroughs in early years of innovation (Doi Moi) period, but over years, Hai Phong still has not yet developed equivalent to these favourable conditions . Budget revenue, especially domestic revenue, remained low level. Business investment environment is not highly competitive, investment resources are still at modest level
In many meetings, Mr. Le Van Thanh, Secretary of Municipal Party Committee emphasized: For city’s development, Hai Phong must clearly identify "bottlenecks" for removing, and must have strong innovation and reforms to clear up, improve business and investment environment, as well as strongly attract resources for city development investment.
Along with restructuring economy, reforming growth model for in-depth development, the "break through” action program into the "bottlenecks" has been actively implemented with 5-year consecutive action theme: "Strengthening the discipline of budget revenues and expenditures – Improving the investment and business environment". This theme has been a cross-cutting direction for all levels, branches and localities throughout the city to focus on striving and implementing.
The city step by step re-established the "steel" discipline in management of financial revenues and expenditures with direction of increasing revenue, preventing loss of state budget revenue; ensuring correct expenditures, saving expenses, spending resources on investing development and enhancing social security. Along with consolidating and arranging a contingent of strong officials to strengthen budget revenue, expenditure and investment attraction activities, Hai Phong City Party Committee has strong and appropriate reform mechanisms and policies for this mission.
Investment environment has been increasingly favorable
Along with focusing on timely solving problems arising in production and business activities through monthly dialogues between businesses with leaders of Municipal People's Committee and functional departments; Hai Phong City has established a center for investment, trade and tourism promotion as a focal point under "one-stop-shop" model for investment activities..., contributing to attracting large domestic and foreign investors.
Director of Hai Phong Department of Planning and Investment Mr. Nguyen Hoang Long said that along with advising city to promptly implement socio-economic development plans, mobilizing maximum and using effectively resources, Department has focused on implementing solutions to improve business environment, enhance national competitiveness, improve PCI index and build city's e-government. Head of Hai Phong Economic Zone Authority Mr. Le Trung Kien shared that the identification of economy three pillars including state economy, private economy, and foreign-invested economy (FDI), must be together interested in strong development which has helped Hai Phong to have steady steps. In recent years, projects of private economy and FDI sector have positively contributed to city’s economic growth. In 2020, industrial parks and economic zones attracted 39 new FDI projects with a capital of more than USD 1.1 billion and up to 25 FDI projects adjusted to increase capital with an additional capital of more than USD 428 million, bringing total attracted capital reached more than USD 1.5 billion, up 21% over previous year. By the end of year, total FDI investment capital reached more than USD 16.2 billion. Along with that, there are 10 new domestic investment (DI) projects and three adjusted capital projects, bringing total number of DI projects to 167 projects with a total investment of nearly VND 146 trillion .
Determination for breakthrough development
Thanks to high determination, drastic direction and support of Hai Phong people, many large projects, such as Vinfast of Vingroup, have been completed and produced "Made in Vietnam" cars only after 21 months. Hai Phong City is being selected as the most important investment destination of Vingroup. Also in a short time, LG Group's high-tech electronic equipment factory is worth nearly USD two billion; Aeon Mall-Japan trade center with a total investment of USD 200 million, and many big projects completed and put into operation ...
Party Committee's policy on investment innovation, clearing all resources, mobilizing all social resources for investment and development has been successfully implemented. Total investment capital of city in past 5 years reached more than VND 564 trillion, tripled 2010-2015 term, of which investment capital from social resources accounts for about 90%, investment capital from state budget is 10%. Investment, production and business environment have been improved, Hai Phong has strongly attracted social resources for investment and development. Production development contributed to bringing total state budget revenue to more than VND 408 trillion, of which domestic revenue in 5 years was nearly VND 121 trillion, 2.65 times higher than 2010 - 2015 period. Secretary of Hai Phong City Party Mr. Le Van Thanh emphasized that strong economic growth of city has contributed to consolidating people’s confidence in leadership of Party Committees and authorities at all levels. This is belief and solid foundation for Hai Phong to continue with given goals. In coming times, in 2021, Hai Phong will continue to strive to achieve a GRDP growth rate of 13.5%; GRDP per capita is 6,600 USD; total state budget revenue is more than VND 89 trillion, of which domestic revenue is VND 35 trillion; total social investment capital is VND 204 trillion. With determination of entire Party Committee, authorities and people of city, Hai Phong is aiming to complete industrialization and modernization by 2025, becoming one of modern cities of Asia by 2030 and is modern city of the world by 2045 in line with spirit of Politburo's Resolution No. 45-NQ/TW dated January 24, 2019, which is gradually becoming reality.