Hai Phong’s breakthrough in FDI attraction

09:30 | 31/05/2015 Economy

(VEN) - Hai Phong made leaps and bounds in foreign direct investment (FDI) attraction during the 2011-2014 period through securing major projects, said Pham Thuyen, Chief of the Hai Phong Economic Zone Management Board in a recent interview with Vietnam Economic News’ reporter Huong Giang.

What is recent situation in terms of the city’s ability to attract FDI?

During the period from September 2011 to October 2014, Hai Phong licensed 124 FDI projects with a total registered capital of US$6 billion, bringing the total investment in Hai Phong city to US$10.5 billion. Most of these FDI projects are technologically-advanced and environmentally-friendly, and have been made in the city’s industrial production sectors by globally-known investors, including Japan-based Bridgestone Group with a US$1.2 billion tire production project; the Republic of Korea’s LG Electronics Inc. with a US$1.5 billion project; US giant General Electric Corporation with a US$110 million project; Germany’s Knauf Group with a US$50 million project; Japanese Fuji Xerox Co., Ltd. with a US$119 million project; NIPRO Pharma Co., Ltd. – also from Japan – with a US$250 million project; and Japan-based Kyocera Co., Ltd. with a US$188 million project.

An  industrial  park  in  Hai  Phong

Haiphong is completing its strategic infrastructure projects including the upgrade of Cat Bi Airport, the construction of Lach Huyen International Port, as well as Hanoi-Hai Phong expressway and coastal highway. The city has continually improved investment promotion activities with a focus on a combination of local infrastructure modernization, administrative reform promotion, and high quality human resource development. I strongly believe that FDI inflows in Haiphong will increase in the future.

How does Hai Phong attract FDI flows into the field of technology transfer?

Haiphong has a strong record of attracting FDI flows into the field of technology transfer. Recently, the LG Electronics Inc.’s project attracted 15 satellite projects with a total investment of US$300 million, including a 100 percent domestic- invested electronic circuit production project. This is a positive sign for technology transfer from foreign large corporations to domestic enterprises. The city has encouraged local businesses to focus their investment in the development of support industries to service large corporations.

What will the city have to do in order to promote technology transfer through FDI projects?

The state should include in the investment law the technology transfer activities by FDI companies over a 2-3 year operating period, making it a condition for investment. Moreover, it should have preferential credit policies for science and technology so as to encourage domestic enterprises to invest in support industries, as well as a corporate transition roadmap to learn and acquire simple and complex transferred technologies.

Hai Phong should encourage local enterprises to do more in terms of technological innovation, procurement of equipment, and industrial production enhancement in order to be able to support FDI enterprises and to get new technologies transferred.

 

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