Haiphong as epicentre of investment in north Vietnam
Haiphong as epicentre of investment in north Vietnam
On April 23, the European Chamber of Commerce and Deep C Industrial Zones co-organised a Haiphong Investment Seminar for the business community in Ho Chi Minh City, with the support of KPMG and Saigon New Port.
The seminar followed recent major infrastructure developments in the northern city of Haiphong involving intermodal transport (seaway, airway, road, waterway, and railway) that are game changers for foreign direct investment attraction and economic growth of both Haiphong and the northern region.
Haiphong is home to the biggest deep sea port in northern Vietnam, Haiphong International Gateway Port or Lach Huyen Deep Sea Port. 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–will develop the first two container berths.
With a draft of 14 metres, vessels with a capacity of 14,000 twenty-foot equivalent units (TEU) will be able to make calls at Haiphong, which is a significant improvement compared to the existing 2,000 TEU port. Once put into use in May, the port will lead to greater cross-border connectivity for the city and its
surroundings. Specifically, shipping time to Europe will be substantially reduced from 30 to 23-25 days, time to the US East Coast will drop from 35 to 27-30 days, and time to the US West Coast will shrink from 20 to 13-15 days, thanks to new direct routes and the omission of transhipment.
Haiphong International Gateway Port is connected to the hinterland with other giant infrastructure projects, including highway connections to Hanoi, the coastal provinces, Quang Ninh, and China, as well as Cat Bi International Airport.
The development of infrastructure and transportation networks has turned Haiphong into northern Vietnam’s main gateway to regional and world markets. In particular, it lowered the barriers to Vietnam’s major trading partners, such as Europe, the US, the ASEAN, and China, turning Haiphong into northern Vietnam’s “new Ho Chi Minh City.”
According to Hans Kerstens, international business development manager of Deep C, Haiphong is the fastest-growing city in Vietnam, with a GDP growth rate of 14 per cent. The city has the necessary infrastructure, reliable utilities, labour supply, and a strategic location for investors to make the best of new opportunities from various free trade agreements. Haiphong has become a destination for established brand names such as Accor Group, Hilton, Daiwa House, Fujita, and AEON. Investments from these market leaders have been pouring into the city, aimed to develop facilities for business, but also forming a vibrant expatriate community.
As a result, foreign investors can enjoy convenient access to a wide range of amenities like international banks, accommodation, restaurants, hospitals, and international schools. Deep C Industrial Zones is poised to become a regional hub for foreign investment. It possesses excellent connectivity to transport infrastructure, including the existing Dinh Vu Port and Lach Huyen Port, in addition to the aforementioned highway and airport connections.
The industrial zone itself is a modern facility integrating international standards and a philosophy of reliability into its operations. Investors are connected to a reliable utilities system ensuring stable operations throughout (including power, water, wastewater, fire-fighting, and drainage). It also promotes renewable energy sources such as wind and solar power for sustainable development.
“Deep C lies in the heart of Haiphong’s infrastructure network, offering investors advantages not only in logistics, but also international-standard utilities provision, economic zone tax incentives, and support for investors to start businesses,” said Kerstens. This tax package allows savings on corporate income tax for 15 years and on personal income tax for the project’s lifetime.
“The development in the region also catches the attention of European investors. This is the reason EuroCham started its northeastern chapter last year,” said EuroCham’s executive director Almut Roessner.
