Haiphong boosts FDI attraction through key infrastructure connectivity
Haiphong boosts FDI attraction through key infrastructure connectivity
With the recent major infrastructure developments, the northern city of Haiphong has stepped up its game for FDI attraction to drive economic growth.
The information was stressed at the Haiphong Investment Seminar organised by Eurocham and DEEP C Industrial Zone with the support of KPMG and Saigon New Port. The seminar gave an insight into the investment climate and potential business opportunities at Haiphong city.
The development of Haiphong International Gateway Port, also known as Lach Huyen Deep Sea Port, is a recent key infrastructure project in the city. Haiphong International Container Terminal, a joint venture between local company Saigon Tan Cang Port and its partners Mitsui OSK Lines, Wan Hai Lines, and Itochu Corporation, pioneer the deepest seaport in the north of Vietnam.
With a draft of minus 14 metres, vessels with a capacity of 14,000 TEU will be able to make calls to Haiphong, a significant improvement compared to the existing 2,000 TEU port. Once Lach Huyen Port is in action from May this year, shipping times to Europe will be substantially reduced from 30 to 23-25 days, to the US West Coast from 35 to 27-30 days, and to the US East Coast from 20 to 13-15 days, thanks to new direct routes and the omission of transshipment. Accordingly, the incoming opening of Lach Huyen Port will bring more logistics advantages for the projects in the active city.
Substantially, the Lach Huyen port project is connected to the hinterland with other mega infrastructure projects, including highway connections to Hanoi, the coastal provinces, Quang Ninh, and China, as well as Cat Bi International Airport. These projects have turned Haiphong into the main gateway of North Vietnam to regional and world markets. In particular, they lowered the barriers to Vietnam’s major trading partners, such as Europe, America, the ASEAN, China, turning Haiphong into the new Ho Chi Minh City in the north of Vietnam.
"DEEP C Industrial Zones lies in the heart of this infrastructure network, bringing to investors advantages not only in logistics but also international-standard utilities provision, economic zone tax incentives, and support for investors to start business," stated Hans Kerstens, international business development manager of DEEP C.
The seminar also brings practical guidelines from experts of KPMG on setting up an expansion project in the north by companies that are already present in the south, while maximising the benefits of tax incentives.
The development in the region also caught the attention of European investors. This is the reason why EuroCham started its northeastern chapter last year, said Almut Roessener, executive director of EuroCham. Investment from market leaders, such as Accor Group, Hilton, Daiwa House, Fujita, and AEON have been pouring into the city to develop facilities for business.
