Haiphong private sector emerges as key engine of economic growth

Haiphong private sector emerges as key engine of economic growth

The northern port city of Haiphong is leveraging its dynamic private sector to sustain double-digit growth and transform into a regional economic powerhouse.

Haiphong, one of Vietnam’s most rapidly growing cities, is placing the private sector at the heart of its development strategy. With impressive contributions to the city’s regional GDP over the past decade, the private economy is fast becoming a critical pillar of growth and innovation.

Sustained high growth with private sector at the core

Nam Dinh Vu Port, part of Nam Dinh Vu IP, developed by Sao Do Group. Photo: Sao Do Group

Between 2019 and 2023, Haiphong maintained an average regional GDP growth rate of 12.6 per cent - 2.44 times the national average - marking a decade of uninterrupted double-digit expansion.

Per capita GDP rose by an annual average of 11.64 per cent, nearly three times the national average. Total factor productivity contributed over 43 per cent to the city's GDP, underscoring an increasingly efficient and competitive economy.

These achievements reflect the city’s implementation of Resolution No.45/NQ-TW by the Politburo and, crucially, the rising influence of the private sector. Private enterprises are not only making financial contributions but are also reshaping Haiphong’s industrial and investment landscape with a series of major projects.

Flagship developments like the VinFast manufacturing facility, the Vu Yen Island residential and ecological park, and various commercial housing and industrial park projects demonstrate the sector’s reach.

These initiatives have helped draw in high-quality foreign direct investment (FDI), aligned with Haiphong’s sustainable and tech-oriented growth model.

Nam Dinh Vu Industrial Park (IP), developed by Sao Do Group - a major developer in the northern region - stands as a prime example.

As Haiphong’s only IP with its own international seaport, it hosts specialised terminals and a synchronised logistics ecosystem.

Its four functional subdivisions are designed to support a diverse range of industries, creating a continuous value chain for infrastructure services, workforce training, and manufacturing.

“This is creating a strong pull for logistics services and high-tech manufacturing, both domestically and internationally,” said Le Tien Chau, Secretary of Haiphong Party Committee. “The private sector’s rise clearly shows the effectiveness of our development policies.”

Currently, Haiphong is home to nearly 40,000 private enterprises, with about 90 per cent categorised as small and medium-sized enterprises active in logistics, mechanics, electronics, seaports, and services. Over the last five years, the private sector has contributed 40-48 per cent to the city’s economic output.

Sao Do Group signs an MoU on investment cooperation with JBS Brazil at the Vietnam-Brazil Economic Forum on March 29 in Hanoi. Photo: Sao Do Group

Looking ahead, Haiphong aims for an ambitious 12.5 per cent regional GDP growth target in 2025, identifying the private economy as a primary engine to achieve this. Key to this strategy is an ongoing effort to refine the investment climate and boost institutional support.

Alongside national policies, Haiphong is pushing digital transformation, simplifying administrative procedures, and encouraging private enterprise-led innovation. These reforms are designed to help businesses upgrade technology, raise productivity, and meet rising standards for quality and sustainability.

Nguyen Thanh Phuong, general director of Sao Do Group, emphasised the need for better access to resources.

“Many private enterprises have strong ideas and sound plans, but lack capital, land, and skilled labour,” he said. “Without support, they’re often forced to sell to bigger or foreign firms, losing their growth potential.”

Despite policy reforms, private businesses continue to face significant obstacles. While they make up over 97 per cent of Vietnam’s total enterprises, private firms often encounter more hurdles in accessing land, credit, and state support than state-owned or foreign-invested entities.

“Preferential policies are still geared towards state or large-scale projects,” Phuong added. “Meanwhile, SMEs struggle with limited support, complex procedures, overlapping inspections, and unofficial costs.”

Many private businesses are also excluded from public procurement opportunities and major supply chains. Experts argue that reducing these disparities is essential for unlocking the sector’s full potential.

Political support for stronger private economy

The importance of empowering the private sector is receiving high-level political backing.

In a recent article titled “Developing the Private Economy - A Lever for a Prosperous Vietnam,” Party General Secretary To Lam declared the private sector ‘the most important driving force for national economic growth and innovation.’

He called for the creation of large-scale private economic conglomerates capable of leading Vietnam’s development at a global and regional level. “With strong institutions and favourable policies, private enterprises will have the leverage they need to thrive,” he said.

Echoing this, Phuong from Sao Do Group stressed that supportive frameworks - such as easier access to loans, tax incentives, and reduced administrative burdens - would be crucial in helping enterprises grow and contribute more meaningfully to the national and local economy.

The launching of Haiphong Business Association's Executive Committee on April 13. Photo: Thanh Son

To help realise this vision, the recently-established Haiphong Business Association will serve as a bridge between the business community and the government.

Its role includes advocating for policies, addressing regulatory bottlenecks, and facilitating communication between businesses and city authorities.

The association also aims to support SMEs in building competitiveness and integrating into global supply chains. Through consultation, networking, and resource-sharing, it hopes to position Haiphong’s private sector as a key player in the city’s sustainable development.

VIR