Haiphong welcomes golden opportunity to attract high-quality foreign investment flow

Jul 1st at 15:26
01-07-2020 15:26:14+07:00

Haiphong welcomes golden opportunity to attract high-quality foreign investment flow

These times present an unprecedented opportunity for Vietnam to welcome a fresh wave of high-quality foreign investment flows in the wake of the upcoming enforcement of landmark deals and new-generation free trade agreements. The northern port city of Haiphong has spared no effort to seize the initiative by preparing its facilities, policies, and workforce.

At the end of May 2020, Germany’s Tesa, a special industrial adhesive tape manufacturer, has confirmed to invest $55 million into Haiphong. Tesa is a prime example of the “China + 1” production strategy adopted by multinationals, and shows how investment flows are drawn towards Vietnam on account of agreements like the EU-Vietnam Free Trade Agreement or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Haiphong welcomes golden opportunity to attract high-quality foreign investment flow
Haiphong Industrial College has signed a co-operation agreement with Japan’s Anabuki College Group in January 2019

With Haiphong’s “hard” and “soft” infrastructure being generally readied to fulfil the requirements of investors, while improvements in human resources have been a key factor encouraging investors to choose the province.

According to Prof. Dr. Nguyen Mai, president of the Vietnam Association of Foreign-Invested Enterprises, in order to receive the investment flow that is moving out of China, human resources is a key factor for success: high-quality labour will bring good investors such as Samsung or Intel, besides political stability, quality of facilities, and open and transparent policies.

Haiphong Economic Zone’s Board of Management has been actively discussing with representatives from Apple, a global tech giant. At the discussions, besides concerns over infrastructure, labour availability was also significantly emphasised. The EZ’s representatives have taken a proactive approach by requesting the investor to outline their HR requirements so that they can co-ordinate with relevant authorised agencies, universities, and colleges to provide intensive training in the most relevant skills, as well as begin recruitment even while students are in the middle of their studies or prior to their graduation.

Availability of high-quality labour

The Provincial Competitiveness Index (PCI) Ranking 2019 published in early May indicated that enterprises highly appreciated Haiphong city's training and education policies, ranking it on top of the nation with 8.24 point. This component index witnessed the highest level of satisfaction from local companies since 2017.

For years, a number of industrial zone developers have been taking the initiative in supporting secondary investors not only with legal and administrative issues and factory construction but also in HR recruitment in order to ensure the prompt operation of their factories.

Haiphong welcomes golden opportunity to attract high-quality foreign investment flow
Sao Do Investment Group always focuses on training to improve the quality of its staff for quality improvement of the labourers to meet investors’ demands

From the developer's perspective, Nguyen Thanh Phuong, general director of Sao Do Group, primary investor of Nam Dinh Vu Industrial Park, commented, “Currently, Vietnam witnesses a golden opportunity to welcome a new wave of high-quality foreign investment. The infrastructure, policies, and legal corridor of Vietnam are generally adequate but need constant improvement.

“The quality of HR is not in fact identical among municipalities. Haiphong has a great advantage in this regard, in addition to transportation infrastructure, social utilities, and industrial zones being among the top of country."

During the period 2015 – 2020 when Haiphong welcomed a record volume of capital-intensive billion-dollar investment projects, the number of employment in city-based industrial zones and economic zones has jumped sharply to meet the set demands.

During 2015-2020 when the port city welcomed a record volume of capital-intensive billion-dollar investment projects, employment in city-based industrial zones (IZs) and economic zones (EZs) has jumped sharply. In 2015, there were about 48,500 Vietnamese workers in these IZs and EZs. By the end of May 2020, this figure has risen to 133,000, by 2.7 times. The average monthly income of workers had doubled in five years from VND4.85 million ($210) to VND10.5 million ($460).

Several industries are in high demand such as IT, accounting, agriculture, and commerce, automotive technology, driver training, hospitality, welding, mechatronics, and electrical engineering, among others. Especially, some vocational and training institutions are interested in investing in key occupations.

International co-operation in training highly skilled personnel is extremely appreciated by Haiphong city. Up to now, there have been 20 foreign-invested projects in the city related to vocational education. The training institutions have been proactively implementing and receiving technical support from experts under diverse programmes funded by international organisations like the ADB and volunteer specialists. As a result, many big investors in the field of high-tech such as LG and Vinfast are operating smoothly their factories in Haiphong, with a steady and stable labour supply.

SAO DO INVESTMENT GROUP JSC

Address: No. 768B Ngo Gia Tu street, Thanh To ward, Hai An district, Haiphong city, Vietnam

Tel: + 84 225 3814 301

Website: www.saodogroup.com/ www.namdinhvu.com

Email: sales@saodogroup.com

Hotline: + 84 965 469 469

Facebook: facebook.com/NAMDINHVUIP

VIR





NEWS SAME CATEGORY

Administrative reforms – key to unlocking EVFTA

In the times of post-pandemic recovery, the EU-Vietnam Free Trade Agreement (EVFTA) and administrative reforms will be the key to boosting trade relations between...

Fitch Solutions revises up Vietnam GDP growth forecast in 2020 to 3%

Vietnamese economy’s resilience, the government’s capable handling of the pandemic, and it being a beneficiary of supply chain relocation could help the country...

Covid-19 affects 30.8 million employees in Vietnam

Some 30.8 million employees aged over 15 in Vietnam had been left reeling from the coronavirus pandemic by June, with roughly eight million being laid off or having...

Vietnam’s consumer prices up 4.19% in Jan-Jun, highest in 5 years

Core inflation in the first six months of 2020 rose by 2.81% year-on-year.

Thai Binh builds nest to attract investors

Along with the general policy line of the state, investors are offered unique incentives and support if they decide to invest in a new project or start a business...

Vinh Phuc invests technical infrastructure to lure investors

Vinh Phuc province is making an effort to complete technical infrastructure while simultaneously accelerating investment promotion programmes in order to attract...

Pay rises hinging on recovery policy

If adopted, an increase in the region-based minimum wage for non-state employees next year will further pressurise local businesses, almost all of which are making...

Ha Noi devises two growth scenarios for second half of year

Ha Noi authorities have devised two growth scenarios for the remaining six months of the year.

Administrative reforms would help unlock EVFTA's potential: EuroCham

Administrative procedure reform is the key to unlocking the full potential of the Europe-Viet Nam Free Trade Agreement (EVFTA), said participants at a conference on...

PM approves list of SOEs for divestment in 2020

Prime Minister Nguyen Xuan Phuc has approved a list of 124 State-owned enterprises (SOEs) for divestment this year.


MOST READ


Back To Top