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Hai Phong a potential destination for investment

Released at: 15:35, 24/04/2018

Hai Phong a potential destination for investment

Photo: Khanh Chi (VET)

Seminar hears of improvements in infrastructure that help the northern port city attract both local and foreign investors.

by Hong Nhung

Northern Hai Phong city holds potential for local and international investors, the Hai Phong Investment Seminar, co-organized on April 23 by the European Chamber of Commerce in Vietnam (Eurocham) and DEEP C Industrial Zones with support from KPMG and Saigon New Port heard.

Those in attendance were keen to gain a better understanding of the business opportunities in the city. A similar seminar was held in the Japanese language on the same day.

The seminar follows recent major infrastructure developments in Hai Phong that are game changers in FDI attraction and economic growth of both the north in general and Hai Phong in particular.

The development of the Hai Phong International Gateway Port (known as the Lach Huyen Deep Sea Port) is the highlight of key recent infrastructure projects in the city. The Hai Phong International Container Terminal (HICT), a joint venture between Saigon New Port and Japan’s Mitsui OSK Lines (MOL), Taiwan’s Wan Hai Lines (WHL), and Japan’s Itochu Corporation (ITO), is the deepest seaport in the north of Vietnam.

With a draft of 14 meters, vessels with a capacity of 14,000 TEU will soon be able to call upon Hai Phong; a significant improvement compared to the existing port, which is capable of berthing vessels of only 2,000 TEU. With Lach Huyen Port in action from May this year, shipping times to Europe will be substantially reduced, 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 omission of transshipments. The upcoming opening of Lach Huyen will also provide more logistics advantages for projects in the city.

“Lach Huyen Port is connected to the hinterlands by other mega infrastructure, including highway connections to Hanoi, coastal provinces, Quang Ninh, and China, and Cat Bi International Airport,” said Mr. Hans Kerstens, International Business Development Manager of DEEP C.

“These have turned Hai Phong into the main gateway of northern Vietnam to regional and world markets, and lowered barriers for Vietnam’s major trading partners such as Europe, the Americas, ASEAN, and China, making Hai Phong a new Ho Chi Minh City in the north of the country,” he added. “DEEP C Industrial Zones lies at the heart of this infrastructure epicenter, bringing investors not only logistics advantages but also utilities provision of international standard, economic zone tax incentives, and support for investors to get started.”

The seminar also provided practical guidelines from experts at KPMG on setting up an expansion project in the north by companies that are already in the south while maximizing the benefits from tax incentives.

“The development of the region also catches the attention of European investors,” said Ms. Almut Roessner, Executive Director of EuroCham. “This is the reason EuroCham started its north-eastern chapter last year. Investments from market leaders such as the Accor Group, Hilton, Daiwa House, Fujita, AEON, and others have poured into the city to develop facilities for businesses and businesspeople coming to Hai Phong.”

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