Southern Hai Phong Economic Zone: A Strategic Development for Vietnam’s Future
By
Vy Anh, Minh Hue
Thu, June 6, 2024 | 2:54 pm GMT+7
A significant development project is on the horizon in Vietnam’s booming northern port city, Hai Phong. Authorities have unveiled plans for a 3.0 generation, multi-sector ecological economic zone focusing on high-tech industries and modern logistics. This ambitious project aims to solidify Hai Phong’s significance within regional and global value and supply chains.
An Ecological Model for Economic Growth
The Hai Phong Economic Zone Authority (HEZA) is spearheading the development of the Southern Hai Phong Economic Zone (EZ). This new ecological model is set to be the backbone of the city’s economic strategy, aimed at fostering sustainable and balanced growth. Spanning an impressive 20,000 hectares, the EZ will be situated along the coastal highway, seamlessly integrating with the Van Uc River area and the Nam Do Son port. The zone is also strategically located near the envisioned Tien Lang airport.
Timeline and Future Plans
From 2026 to 2030, relevant agencies will formulate and submit plans for the construction of the EZ. This includes developing infrastructure facilities and various functional areas designed to attract secondary projects. Le Trung Kien, the head of HEZA, has highlighted that the Southern Hai Phong EZ will not only boost local economic activity but also play a crucial role in enhancing national defense and security.
The zone will incorporate major industrial parks such as Tien Lang 1, Tien Lang 2, Tan Trao, Ngu Phuc, and Tran Duong-Hoa Binh. By 2030, it is expected to emerge as a significant economic driving force, transforming Hai Phong into a pivotal hub within Vietnam.
Infrastructure Development
The economic zone is part of a comprehensive development plan for Hai Phong covering the years 2021 to 2030, which integrates a modern and cohesive infrastructure system. This includes vital projects like the Lach Huyen international gateway port, Nam Do Son international transshipment port, and the Cat Bi international airport. Observers can look forward to the Tien Lang airport becoming an integral part of this infrastructure, enhancing connectivity within the region.
Regional Economic Corridors
The Southern Hai Phong EZ is strategically positioned along several key economic corridors, enhancing its appeal as a regional commercial hub. Notably, the coastal economic corridor and the Kunming-Lao Cai-Hanoi-Hai Phong-Quang Ninh corridor are essential in connecting southern China to northern Vietnam.
The latter corridor features the upcoming Lao Cai-Hanoi-Hai Phong-Quang Ninh railway, which will span 392 kilometers with a projected speed of 160 km/h. This railway is expected to handle up to 10 million tons of cargo annually, with its construction set to kick off in 2025, funded by a substantial VND 100 trillion ($3.93 billion) investment.
Investor Interest
The Southern Hai Phong EZ has already attracted considerable attention from investors, with expected investments reaching approximately $2.5 billion. Additionally, Hai Phong has established memoranda of understanding with ports in Los Angeles, New York, and New Jersey. This collaboration aims to develop an extensive complex of seaports, airports, urban, industrial, energy, and logistics areas, projecting a cost between $5 billion to $10 billion.
Current Economic Successes
Currently, Hai Phong’s Dinh Vu-Cat Hai Economic Zone stands as one of Vietnam’s most successful economic zones, showcasing an impressive investment rate averaging $12 million per hectare. In certain areas, such as the Trang Due Industrial Park, this figure can soar up to $37 million per hectare, indicating robust investor confidence and potential for economic expansion.
The Southern Hai Phong Economic Zone represents a strategic and forward-looking initiative that promises to greatly enhance not only the local economy but also Vietnam’s position in the global market. Through focusing on high-tech industries and sustainable development, it seeks to foster an environment ripe for innovation and growth.