Hai Phong, an industrial and port city in Vietnam, is well-known for its competitively advantageous industries, including mechanical engineering, shipbuilding, metalworking, electronics, and textiles. These traditional industries serve as the foundation for investing and developing supporting industries.
Here are some key takeaways:
Success and Challenges in Supporting Industry Development
The city has achieved great success in the supporting industry development sector. For example, Hai Phong Paint Joint Stock Company has made a name for itself with its ship paints, industrial coatings, and traffic paints, while other companies like Tan Long Casting Factory and My Dong Village have been successful in manufacturing metal equipment, steel structures, and other industrial goods.
In the high-tech supporting industry sector, Hai Phong is recognized for its oily water separators, fireproofing materials, and ships. The industrial zones in the city are now focusing on attracting supporting industry projects that are part of global production chains, such as electrical wires, audio systems, and plastic resins. Nomura Industrial Park is currently leading the way in supporting industry development, and in the future, the leading position is expected to belong to VSIP Hai Phong, Dinh Vu Industrial Park, and Saigon – Hai Phong Industrial Park (Trang Due).
Future Prospects with Japanese Investment and Initiatives by the City
Recently, Japanese investors have been speeding up large-scale projects in Hai Phong, including Bridgestone rubber tire factory, Kyocera Mita Vietnam office equipment production factory, and Component B of Lach Huyen International Port. This signals a new wave of Japanese investment in the city. Japan is currently the biggest foreign investor in Hai Phong with projects and capital worth $3.145 billion.
Despite these successes, the supporting industries in Hai Phong remain small and weak. The city faces challenges such as limited access to modern manufacturing technologies, qualified human resources, financial resources, and production premises, while state support mechanisms and policies are not attractive enough. Consumer markets and environmental protection pressures are also obstacles to the growth of supporting industries.
To create an attractive environment for Japanese partners, Hai Phong is preparing production grounds and accelerating the construction and upgrading of infrastructure systems, such as the Hanoi – Hai Phong Express Motorway, Cat Bi Airport, and Hai Phong International Port in Lach Huyen. The city is also encouraging the development of Japan-standard vocational training establishments, the teaching of the Japanese language, and the broadcasting of radio, television, and newsreels in Japanese.
The city has proposed that the government consider some preference mechanisms and policies for infrastructure developers and operators in specialized industrial zones, and has asked the government and Japanese economic organizations to fund infrastructure construction, design, and construction consulting and supervision. To streamline administrative procedures and create a more welcoming environment, the city is also preparing to launch Japanese-speaking services in existing industrial parks.
In conclusion, Hai Phong has made great strides in supporting industry development, and with the recent influx of Japanese investment, the future looks promising. However, there is still much work to be done to support the growth of these industries and make them more competitive on a global scale.