Haiphong to capitalise on a good year
Haiphong to capitalise on a good year
From December 2015 to mid-January 2016, industrial parks and economic zones in the northern port city of Haiphong have received $240 million in newly-registered projects and added capital to existing projects from foreign investors.
Notably, the first such project is an apparel production factory of Singaporean Herberton Private Limited in Vietnam-Singapore Industrial Park Haiphong (VSIP Haiphong). The $120 million facility is expected to start operation in January 2019 with a capacity of 22 million items per year.
In December 2015, Haiphong Economic Zones Management Authority (HEZA) granted investment certificates to three Korean projects, including Hallacast Co., Ltd’s $30 million Halla Vina project, the $16 million HKT Electronics Vietnam factory invested by HKT Co., Ltd, and Woosung Molding & Plastics Co., Ltd’s Woosung Electronics Vietnam factory worth $34 milllion. All three factories will produce mobile phone components for Samsung, Microsoft, and LG following their expected start of operation in 2016.
Apart from the new projects, two enterprises added capital to their existing operations in the city. Accordingly, Hong Kong’s Apex Wealth International Limited added $30 million to its existing sock production factory in VSIP Haiphong. Singaporean Dongbu Singapore Pte. Ltd expanded its Dinh Vu Cast-Iron Making factory by $10 million.
Along with newly-registered projects and added capital projects, foreign investors have kicked off the construction of numerous licensed projects. Notably, on December 14, Belgian Rent-A-Port Group held the ground-breaking ceremony of South Dinh Vu II Industrial Park (Deep C II), worth $250 million.
On December 25, Hong Kong-invested Chilisin Holding Limited kicked off the construction of its $22.6 million plant manufacturing inductance coil moulds and transition winding inductance coils in VSIP Haiphong.
“Foreign investment projects not only contributed to creating jobs for local people but promoted the city’s socio-economic development,” said Duong Ngoc Tuan, director of the Department of Planning and Investment of Haiphong.
“The city’s industrial parks and economic zones are luring in foreign investors due to the city’s priority to construct synchronous infrastructure and enhance investment promoting programs,” stated Mai Xuan Hoa, deputy head of HEZA.
In 2015, the city’s industrial parks and economic zones attracted $869 million in FDI, making up 87 per cent of the city’s total and exceeding the initial plan by 31 per cent. To date, over 450 FDI projects in the city with an aggregate capital of $11 billion are valid.
In 2016, HEZA expects to attract $1.8 billion in FDI, create 73,000 jobs for Vietnamese people, and 800 jobs for foreign people, while simultaneously increasing the revenue and the export turnover to between 20 and 30 per cent on-year.
