10:06 | 04/04/2015 Economy
(VEN) - Despite a subdued economic forecast, the Hai Phong People’s Council has set a target to mobilize about VND47.5 trillion this year in development investment capital, up more than five percent over the previous year.
Infrastructure construction projects are being rapidly deployed in Hai Phong
Orientation for implementation
As funding from the state budget becomes increasingly limited, the Hai Phong Department of Planning and Investment has advised the city to continue raising development investment capital for the year on the principle that foreign capital is important and domestic capital is decisive. The state funding should primarily focus on the city’s key sectors and industries such as technical infrastructure, urban and port infrastructures, cargo traffic enhancement, tourism development, and new rural area construction. In addition, the investment structure will also be adjusted towards green growth, as well as economic and business restructuring, with a focus on an increased proportion of investment in hi-tech, environmentally-friendly and high value-added sectors.
Hai Phong’s economic development achievements in recent years have created more favorable conditions for raising capital for development investment this year.
To hit the VND47.5 trillion target, the city has continued to adopt solutions which were previously applied, and which yielded positive results in previous years. Specifically, in the private sector, total investment is expected to reach VND17.2 trillion, up by 3.7 percent over last year, accounting for 36.21 percent of the total investment. Meanwhile, the foreign investment sector is expected to reach VND14.4 trillion, accounting for 30.3 percent.
Positive results indicate bright prospects
According to the Hai Phong Department of Planning and Investment, many large and socio-economically important infrastructure projects are being accelerated and will be put into operation this year. Such projects include the section running through Hai Phong of the Hanoi-Hai Phong Motorway, Cat Bi International Airport, and the Tran Chau-Cat Ba Fisheries Logistics Zone.
Hai Phong boasts accelerated construction in its modern infrastructure projects and has become the focal point for many large domestic corporations including Vingroup, Him Lam and FPT. Meanwhile, many other businesses, such as Hai Phong Paint JSC, Tien Phong Plastic JSC and Vico Co., Ltd. have plans for investment expansion and technological innovation here, which are tailored to the economic development trends for the year.
Last year, Hai Phong successfully attracted a large amount in foreign direct investment (FDI), registering 124 new FDI projects with a total registered capital of US$4.15 billion, and 91 capital-adjusted projects with a total capital increase of US$1.25 billion, bringing the total FDI amount to US$5.4 billion.
The credit market in Hai Phong has been developing to cater to the needs of local businesses. “We have applied measures to reach the annual loan amount of VND61.05 trillion, up by 12 percent compared to the previous year,” said a representative from the State Bank in Hai Phong.
By Quoc Cuong