Hải Phòng, a new HCM City

The recent infrastructure development in the northern region is a game changer in attracting foreign investment and spurring economic growth, especially in Hải Phòng, the Hải Phòng Investment Seminar heard in HCM City yesterday.

Organised by Eurocham and Deep C Industrial Zones with the support of KPMG and Sài Gòn New Port, the seminar attracted investors and business executives keen to get a better understanding of business opportunities in the port city.

At the seminar, participants were provided with an overview of the investment situation and recent changes in the northern region.

The North including Hải Phòng City accounted for 42 per cent of the total investment in Việt Nam, thanks to its transportation infrastructure developments.

These includes developments in deep sea port, international airports and highways.

 DEEP C Industrial Zones at the centre of Đình Vũ Port, Bạch Đằng Bridge to Hạ Long, Hải Phòng – Hà Nội Highway, Tân Vũ Road to Lạch Huyện Deep Sea Port.

Nội Bài International Airport in Hà Nội, which has a new passenger terminal and runways, and its capacity has doubled. Cát Bi International Airport, which opened in 2016, has direct flights to Thailand, South Korea, Singapore, and Japan.

The new deep-sea port (Hải Phòng International Gateway Port or Lạch Huyện Deep Sea Port) has also made the region more attractive to investors. The opening of the port will offer more logistics advantages for investors in the dynamic city.

With a draft of -14m, vessels with a capacity of 14,000TEU can berth in Hải Phòng, a significant improvement compared to the existing port of 2,000TEU.

With Lạch Huyện Deep Sea Port in action from May this year, shipping times to the EU will fall substantially from 30 days to 23-25 days, to the US West Coast from 35 days to 27-30 days and to the US East Coast from 20 days to 13-15 days, thanks to new direct routes and the cessation of the need to tranship.

“The Lạch Huyện port project is connected to the hinterland with other mega infrastructure, including highways connecting with Hà Nội, coastal provinces, Quảng Ninh, China and the Cát Bi International Airport,” said Hans Kerstens, international business development manager of Deep C Industrial Zones.

The Hải Phòng – Hà Nội Expressway has cut the travel time between the two cities to 1.5 hours. The Hải Phòng – Quảng Ninh – China Expressway is expected to open to traffic in the second quarter of this year. The four-lane, 25 kilometres expressway allows people to reach China in three hours.

A coastal highway from Quảng Ninh to Thanh Hoá is under construction. When finished, it will pass through Hải Phòng and the five provinces of Quảng Ninh, Thái Bình, Nam Định, Ninh Bình, and Thanh Hoá.

Kerstens quoted a report from CBRE as saying, “Hải Phòng has the necessary infrastructure, reliable utilities and labour supply at strategic locations for investors to make the best of new opportunities from various FTAs such as EVFTA, CPTPP, etc.”

Apart from being a port city and an international gateway to northern Việt Nam, Hải Phòng also possesses high quality services for business such as International banks, accommodation, restaurants, hospitals which are all readily available.

"These upgrades have turned Hải Phòng into the main gateway for Northern Việt Nam to regional and work markets, lowered the barriers for Việt Nam’s major trading partners such as the EU, America, ASEAN, China, making Hải Phòng a new HCM City in the north of Việt Nam.”

One more attraction for investors, it was pointed out at the seminar, is the availability of land at industrial zones including the Deep C Industrial Zones.

The Deep C Industrial Zones have expertise in land development, port engineering and investment and enjoys strong local authority support, developed by Rent-A-Port Group (Belgian) with partnership from Haiphong People’s Committee.

The Deep C Industrial Zones consist of five sub-projects in the epicenter of Hải Phòng infrastructure developments, namely Deep C Hải Phòng I, II and III and Deep C Quảng Ninh I and II. All of the five zones are located in the vicinity of Lạch Huyện Deep Sea Port, Red River Delta Highway system and with convenient links to international airports.

The zones offer land on lease for industrial development and ready-built workshops/warehouses for small and medium businesses, with connection to reliable utilities of international standard and a dedicated team providing effective support to investors. DEEP C I is also equipped with a common-use liquids jetty and petrochemical area unique in the north of Việt Nam.

“We support the projects of our customers by providing an integrated support package in an unconditional and transparent way, allowing them to do their business hassle-free,” Kerstens said.

Over the last 20 years Deep C Industrial Zones have evolved into one of the biggest and most reliable industrial land developer groups in Việt Nam. To date they have over 70 projects and a total investment of around US$3 billion in Việt Nam from Europe, America, Japan, South Korea, Việt Nam, including big corporations such as Bridgestone, Knauf, C.Steinweg, Yusen, Nippon Express, Shinetsu, etc.