Haiphong city now ranks among top five cities and provinces in Vietnam for attracting a large number of domestic and foreign investors. The city has to date drawn up as many as 30 FDI projects worth US$240 million, up 171 per cent in terms of number and 250 per cent in terms of value against last year. The city has also granted licenses to 16 others to raise their registered capital by US$70 million in total. Presently, Haiphong has projects for two industrial parks and one export processing zone: Nomura-Haiphong Industrial Zone, Dinh Vu Industrial Park and Haiphong '96 Export Processing Zone. Among these areas, Dinh Vu IZ has been emerging as an economic complex with the highest development potential in the north. Thanks to its convenient location, sufficient infrastructure and quality services, the DVIZ is known as a destination of choice for both local and foreign investors.
Dinh Vu IZ, developed by the Dinh Vu Development JV Company, was officially put into operation in October 1997. Covering 1,000 hectares of land on the Dinh Vu peninsula, the IZ was planned to have with a wide range of functions suitable for all kinds of industry, including light industry, heavy industry, and chemical and petrochemical industries. In addition, there are ports, a residential zone, bustling commercial centers, and other public services.
Favorable Conditions, Ideal Geographic Position
DVIZ is located on the Dinh Vu peninsula downstream of the Bach Dang river, the essential access channel to Haiphong port. Around seven kilometres away from Haiphong city, DVIZ has an abundant labor force as the city has one million people of working age, one-quarter of whom are qualified laborers that have graduated from universities and colleges. Dinh Vu is also three kilometres from Cat Bi airport, which conducts direct flights to Hue, Danang, and Ho Chi Minh City. National Highway No.5 and other roads linking DVIZ with Hanoi, Quang Ninh, and other cities and provinces and a railway system connecting DVIZ with Chua Ve wharf will meet the transportation demands of the enterprises in the zone.
What makes DVIZ different from other industrial zones is that there is a general commercial port which can accommodate 20,000 DWT. Dinh Vu deep sea port will shorten import duration of materials for production while directly exporting clients' products to the world market. The first two wharves were put into operation on April 2005 with capacity of 12 million tons per annum and another five wharves yet to be constructed will push cargo up to 6 million tons per year.
Good Infrastructure
The Dinh Vu IZ has already installed the Cat Bi power generator of 8MVA in order to ensure sufficient electricity to factories in the zone. In addition, it has also installed another power generator with a capacity of 2250KV as a precautionary measure. The IZ also provides a wide range of communication services with 2,000 telephone lines under technical assistance of Haiphong Post Office. The communication services include hi-speed internet and fax. The Dinh Vu IZ has also developed a hygienic water supply system with capacity of 20,000 cubic meters per day and a waste water treatment plant in the zone.
Incentive Policies
The DVIZ has offered a wide range of incentive policies for local and foreign investors who are commited to setting up factories by the end of this year. Soft land rent, simple administrative procedures and appropriate labor training program have greatly lured more and more investors into the zone.
At the moment, the zone is focusing on developing infrastructure for heavy industry, the agricultural sector and port services to address the needs of large industrial projects. Thanks to these, the DVIZ has developed 11 projects covering 35 per cent of its total surface in the first phase. The zone is expected to attract five additional investors by the end of this year.
Dinh Vu Industrial Zone is on the right track to becoming a modern and comprehensive economic zone taking advantage of its geographic location with great access in the north of Vietnam. "With such advantages, the DVIZ is seen as a strategic destination for local and foreign investors which will help the city reach its socio-economic target set for the 2006-2010 period," said Dao Duc Luyen, the Deputy General Director of Dinh Vu Development JV Company.
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