Hai Phong to expand industrial zone to welcome Japanese firms

A corner of the Japan-Hai Phong Industrial Zone in Hai Phong city, northern Vietnam.

Photo courtesy of the facility

Hai Phong to expand industrial zone to welcome Japanese firms

By Tri Duc

Fri, February 17, 2023 | 11:23am GTM+7

The Japan-Hai Phong Industrial Zone in the northern coastal city of Hai Phong is set to expand by 200 hectares to welcome more investors, particularly Japanese firms, the Hai Phong Economic Zone Authority (HEZA) announced on Thursday.

The facility, previously known as the Nomura-Hai Phong Industrial Zone, initially received investment of $140.83 million and covered 153 hectares. The occupation ratio currently stands at 90%, thanks to its modern infrastructure, such as an independent 50-MW power plant, clean water supply of 13,500 cubic meters a day, and wastewater treatment of 10,800 cubic meters a day.

The expansion of the industrial zone also marks the 50th anniversary of Vietnam-Japan ties (September 21), HEZA added.

Japan is the second-biggest foreign investor in Hai Phong with 146 valid projects worth $3.9 billion, focusing on sectors of electricity, electronics, automobile components, machinery, and logistics, among others.

In 2022, Japan-invested firms in the city posted a total revenue of $2.2 billion, exports of $3.08 billion and imports of $2.3 billion, and paid VND1,313 billion ($55.21 million) to the state budget, according to HEZA. They employed 39,667 people, including 359 foreigners.

The Japan-Hai Phong Industrial Zone attracted 56 foreign investments with total registered capital of $1.67 billion as of February 15, including 44 Japanese firms worth $1.32 billion.

In a move to achieve gross regional domestic product (GRDP) growth of 12.7-13% in 2023, Hai Phong is looking to develop more industrial parks and clusters as the industrial sector currently accounts for 49% of the city’s GRDP.

This year, the city eyes to complete the legal procedures to establish four new industrial parks, namely Nam Trang Cat, Thuy Nguyen, Trang Due 3, Giang Bien 2, while completing site clearance and infrastructure construction for others like VSIP Hai Phong, Tien Thanh, An Duong, and Nam Dinh Vu.

https://theinvestor.vn/hai-phong-to-expand-industrial-zone-to-welcome-japanese-firms-d3749.html