Located in the Northern key economic region and at the bridgehead of the economic ring with China, Haiphong is making every effort to become an industrialised city. Vietnam Business Forum magazine (VIB Forum)’s reporter Nguyen Mai interviewed Chairman of Haiphong People’s Committee Trinh Quang Su.
Could you tell us about the achievements and shortfalls of the city in the implementation of the five-year plan (2001-2005)?
Haiphong has successfully implemented the five-year plan (2001-2005) with GDP growth rate of 11.1 per cent a year, or 1.5 times the growth rate of Vietnam. In 2005, the GDP growth rate increased 12.25 per cent over 2004, higher than the average growth rates of Vietnam in all sectors: industry, agriculture and service, and GDP per capita of US$1,070 a year.
The economic structure is developing in line with the industrialisation and modernisation and efficient exploitation of the potentials and advantages of the city, increasing industry and services while reducing agriculture. In 2005, for the first time, the service turnover of the city exceeded 50 per cent of GDP (industry-construction 36.58 per cent, service 50.44 per cent, agriculture-forestry-fisheries 12.98 per cent).
However, the city has seen certain shortfalls. The economy is small in size, Haiphong GDP is only 3.2 per cent of Vietnam. The growth fails to achieve the potential and role of the key economic region. Sea economy, aquaculture, trade and tourism have not been developed. Business efficiency and competitiveness remain low and unstable.
In addition to seaports, what other advantages attract local and foreign investments?
In the first place, the city is determined to improve investment formalities and apply efficient strategy to attract investment. Together with the building of important infrastructure projects approved by the Prime Minister such as Lach Huyen pier, Hanoi-Haiphong highway and railway, Dinh Vu - Cat Hai bridge, Cat Bi airport, Haiphong will make everything ready to receive the influx of investments into industrial zones of Nomura, Dinh Vu and industrial complexes of Trang Due, Cau Kien, and Tan Lien..
Important partners in shipbuilding, heavy machine manufacturing, urea fertiliser, and electronics have visited the city and major groups such as Toyota, Metro, Citizen, and Pioneer have invested in Haiphong and found the city increasingly attractive to investors.
At the end of 2005, Haiphong has attracted FDI of over US$2.1 billion with 193 projects under operation. In 2005 alone, over US$320 million was invested, 2.5 times the expected rate. The main resources came from East Asia with Japan leading in the number of projects. 70 per cent of the investment capital are in industrial sector, the rest is in infrastructure, transport, trade and service. Investment in industrial zones is doing well, especially Nomura IZ with the land almost fully rented by 12 new projects valued at over US$74 million.
How are you improving the business environment?
The business environment of the city has been improved in all aspects, more attractive and favourable for socio-economic development. Concerned authorities provide faster formalities for investment, business activities, land rent and construction permission. The city has set specific tasks to achieve each year to improve this attractive investment environment. The implementation of the Enterprise Law and administrative reform of one-stop shop have facilitated businesses and investments.
2006 will be Year of administrative reform of the city to create a better and more attractive environment for investments. The city will continue with more preferential treatment and incentives for investments, facilitating businesses with equal treatment, free and healthy competition. Chairman and Vice-Chairman of the city will have regular meetings (monthly, quarterly or twice a year) with the businesses to listen and find solutions to the constraints of the business community.
How do you forecast the economic development and investment in 2006 and in the next five-year plan (2006-2010)?
2006 is the first year of the next five-year plan. The successful implementation of 2006 plan will facilitate the achievement of the objectives of the five-year plan. The city GDP in 2006 is expected at 12-13 per cent more than 2005 (14.2-14.5 per cent in industry-construction, 4-4.5 per cent in agriculture-forestry-fisheries, and 12.9-13.6 per cent in service).
In 2010, Haiphong will try to contribute 4-4.5 per cent of the national GDP with a growth rate of 12-13 per cent a year, 1.5 times that of the average of Vietnam (13-14 per cent in service, 13.5-14 per cent in industry-construction, and 4.5-5 per cent in agriculture-forestry-fisheries). GDP per capita will be US$1,800. The total investment capital in 2006-2010 will be over VND80,000 billion (over VND16,000 billion a year) including 30 per cent in foreign investment (ODA and FDI).
Thank you very much!
Vietnamese
