Developing deep c industrial park in a sustainable direction = phát triển khu công nghiệp deep c theo hướng bền vững
Urgency of the topic
The emergence of industrial zones is a crucial trend in the modern economy, driving economic restructuring towards industrialization and modernization while attracting both domestic and foreign investment These zones significantly influence urban and rural planning, enhance service industries, and promote a more civilized lifestyle among certain populations However, their development has also highlighted issues related to sustainability, environmental protection, and unresolved social challenges As we enter the 21st century, the need for sustainable industrial zone development aligns with global integration efforts By attracting direct investment, optimizing domestic resource use, and increasing export turnover, industrial zones contribute to budget revenues and job creation Furthermore, they play a vital role in economic restructuring, advancing Vietnam's integration into the global production value chain, fostering urban development, and enhancing regional connections while protecting the ecological environment Overall, the establishment of industrial zones has facilitated institutional improvements, enhanced the business investment climate, and spurred innovation in administrative processes.
Hai Phong, a major city under the Central Government and positioned at the heart of the Northern economic development triangle, has long attracted investors seeking to develop industrial zones due to its advantageous trade connections and ample development potential However, the city faces challenges in achieving sustainable development, as its industrial zones exhibit low growth quality, inconsistent development, and insufficient attention to environmental pollution and land use To address these issues, it is essential for local authorities to prioritize sustainable development strategies for industrial zones.
With such practical requirements, the author chose the topic "Sustainable development of DEEP C industrial zones" as my graduation thesis.
Overview of research situation
In the world, there are a number of typical studies on sustainable development such as Mayer (2008) [101], O'Connor (2006) [102] and Atkinson (1999) [85] proposing assessment of sustainable development according to 4 dimensions or 6 indicator systems
In Vietnam, several case studies highlight the importance of sustainable development, notably by researchers like Le Xuan Ba (2010) and Bui Tat Thang (2006) These studies emphasize that achieving sustainable economic growth requires not only a high growth rate but also significant changes in economic structure, alongside improvements in living standards and environmental protection Le Ha Thanh and colleagues (2014) proposed two sets of criteria for evaluating the sustainable development of industrial clusters: one focusing on internal sustainability and the other on assessing spillover effects The internal sustainability criteria address subjective factors within industrial clusters, while the spillover criteria evaluate impacts across economic, social, and environmental dimensions.
Research on sustainable development highlights that, alongside the traditional criteria of economy, society, and environment, additional institutional criteria are essential for specific economic subjects, such as industrial zones and special economic zones This necessitates a focus on structural economics and economic restructuring that aligns with progressive goals Consequently, the conventional model of industrial zones must evolve towards a sustainable framework that meets international standards.
Research objectives
- First, contribute to clarifying theoretical and practical issues related to industrial zones development from the perspective of sustainable development
- Second, analyze and evaluate the current status of industrial zones development Deep C Hai Phong from the perspective of sustainable development
- Third, propose solutions and recommendations to develop DEEP C industrial zones in a sustainable direction.
Subject and scope of research
The research object of the thesis focuses on studying the current status of developing Hai Phong Deep C industrial zones in a sustainable direction with a system of solutions
- Regarding content: focusing on Hai Phong industrial zones projects following the direction of sustainable economic, social and environmental development - About research space: Deep C area of Hai Phong City, Vietnam
- About time: Data collected from 2019 to July 2024.
Research methods
The methods used to research the topic include: - Researching the Party's guidelines and policies, State laws and Hai Phong city
- Secondary documents and data related to the topic are also collected through publications, documents, the Provincial Statistical Yearbook, legal documents, and
4 reports of neighboring localities , of the Finance sector, websites of other relevant ministries and sectors
- Synthetic analysis method: Analyze and evaluate documents on the conditions and current status of industrial zones development to synthesize relevant secondary data
- Analyze data using the TOWS matrix
Structure of the thesis
In addition to the introduction, conclusion, references, appendices, the thesis is presented according to the structure of 03 chapters as follows:
Chapter 1: Theoretical issues about sustainable development of industrial zones Chapter 2: Current status of sustainable development of Deep C’s industrial zones in Hai Phong city
Chapter 3: Main solutions to develop Deep C industrial zones in a sustainable direction
THEORETICAL ISSUES OF SUSTAINABLE DEVELOPMENT
Some basic concepts
Industrial zones is an area with defined geographical boundaries, specializing in the production of industrial goods and providing services for industrial production (In Clause 1, Article 2, Decree 35/2022/ND-CP)
Industrial zones in Vietnam are established and managed by the Government through the Provincial Industrial Zones Management Board, providing enterprises with comprehensive infrastructure and high-quality public utilities These zones offer numerous incentives, including favorable tax policies and land use regulations, particularly for areas classified as having difficult socio-economic conditions under Decree 82/2018/ND-CP Investment projects in these zones benefit from streamlined administrative processes, supported by competent agencies that facilitate compliance with legal regulations on investment, business operations, land, construction, environment, labor, and trade through a "one-stop, on-site" mechanism.
The recent decree addresses six key labor recruitment and related challenges in project implementation It also introduces regulations for new models of Industrial Zones, including Supporting Industrial Zones, Eco-industrial Zones, and Industrial-Urban-Service Zones, providing a solid legal framework for developers.
To enhance the competitiveness of Vietnam's industrial zones, the government is actively promoting investments and providing support for organizations and individuals looking to establish new industrial zones or convert existing ones This initiative aligns with the approved planning by relevant authorities and focuses on developing supporting industries and eco-industrial zones as outlined in the recent decree.
Industrial zones have the following characteristics:
- No residential population: Industrial zones are usually not used for settlements, but are mainly places where factories, enterprises, production facilities and support services for industrial production gather
Enterprises in industrial zones specialize in the manufacturing and processing of industrial goods while also offering essential support services, including logistics, consumer goods, and construction materials.
- Preferential policies: Enterprises investing and operating in industrial zones often enjoy preferential policies such as corporate income tax exemption and reduction, land rent exemption
Each industrial zone operates under its own separate management board, which possesses legal status and is equipped with official accounts and seals featuring the national emblem These boards are funded by the State budget to oversee essential administrative functions and career-related activities.
1.1.2 The concept of sustainable development:
Sustainable development, as defined in the 1987 Brundtland Commission report "Our Common Future," refers to development that fulfills the needs of the current generation while ensuring that future generations can also meet their own needs This concept emphasizes the importance of balancing present requirements with long-term sustainability.
This concept emphasizes the need to balance:
- Economic development: Ensuring continued and stable economic growth without harming the environment or society This includes using natural resources in a rational and efficient manner, ensuring long-term economic benefits
Social development focuses on achieving social equity and enhancing the quality of life for all individuals by improving health, education, and employment opportunities It emphasizes the protection of human rights and the promotion of gender equality, ensuring that everyone has equal access to essential resources and services.
- Environmental protection: Maintaining and conserving natural habitats, ensuring sustainable use of natural resources and minimizing negative impacts on ecosystems This involves protecting biodiversity, reducing pollution and addressing climate change
Sustainable development does not focus on one element alone but must harmoniously combine all three aspects to create a prosperous, equitable and environmentally friendly future
Sustainable development in a country entails a holistic approach that enhances essential capabilities while ensuring human security and maintaining the nation’s sustainable competitiveness This competitiveness is founded on various criteria and pillars that collectively contribute to the overall growth and stability of the nation.
Figure 1.1 Sustainable development house model
Source: Prof.Dr Nguyen Bach Khoa, Associate Professor, PhD Hoang Dinh Phi, 2015
Sustainable business development involves proactive strategies by owners to ensure long-term competitiveness and prevent bankruptcy, thereby safeguarding career stability Key elements contributing to an enterprise's sustainable growth include effective resource management, innovation, social responsibility, and adaptability to market changes.
Sustainable competitiveness in an enterprise refers to its ability to effectively meet market demands while simultaneously enhancing its brand, ensuring profitability, fulfilling social responsibilities, and complying with environmental regulations in a free and fair market This competitiveness is closely linked to the enterprise's management capabilities, which encompass various aspects such as executive management, human resources, technology, finance, production, marketing, and sales.
Figure 1.2 Pyramid of sustainable competitiveness of enterprises
Source: Associate Professor, PhD Hoang Dinh Phi, 2014
To enhance competitiveness, an enterprise must systematically build and develop its foundation of essential capabilities and resources tailored to the production and trading of specific products or product groups.
9 products of the enterprise such as: technological capacity, financial capacity, human resource capacity
- The competitiveness of an enterprise with both production and business activities has some differences compared to a commercial enterprise or specializing in purchasing and exporting goods
Investing in and developing fundamental capabilities such as corporate governance, security, technology, capital, human resources, marketing, training, and culture is essential for enhancing the quality of an organization's resources These activities are crucial for businesses to thrive and remain competitive in today's market, serving as a key driver of overall business success.
Labor productivity is a crucial indicator of a company's technical capabilities, production organization, and management efficiency High product quality signifies compliance with economic and technical standards while effectively meeting consumer demands Additionally, competitive pricing plays a vital role in influencing a business's market share and overall profitability.
- Market share (domestic, export, brand)
To enhance competitiveness in the market, businesses must refine their product offerings, adapt marketing strategies, and strengthen brand identity to elevate their market position and expand export opportunities A product brand—comprising names, terms, symbols, and designs—serves to identify and differentiate a business's goods or services from competitors Ultimately, a company's value is significantly influenced by its brand reputation.
- Profit (social responsibility and environmental protection): When a business is profitable, it needs to pay attention to social responsibility and environmental protection.
Role and purpose of sustainable development of industrial zones
Attracting investment capital is crucial for fostering innovation and driving local economic development, as capital does not inherently gravitate towards a region; rather, its influx is influenced by the area's overall appeal.
Localities are increasingly competing to attract domestic and foreign investment by leveraging various factors such as natural conditions, economic development, political and social environments, natural resources, institutional frameworks, human resource quality, and investment attraction policies Each region employs distinct methods and strategies to enhance its business environment and secure investment capital.
Localities actively compete to attract investment to drive economic development, aiming to enhance export efficiency, boost budget revenue, and elevate technological capabilities This investment not only generates job opportunities but also fosters management skills and market development, creating a conducive environment for local businesses Furthermore, it facilitates connections between domestic and foreign economies and integrates various business sectors to achieve overarching economic goals.
1.2.1 Economic goals for industrial zones development
The development of industrial zones is a crucial first step in reducing poverty, as it generates a significant number of jobs and lowers the unemployment rate In 2023, the General Statistics Office reported that the unemployment rate for the working-age population dropped to 2.28%, a decrease of 0.07 percentage points from the previous year, highlighting the positive impact of industrial zones These zones not only boost local economic growth but also enhance budget revenues, create numerous job opportunities, and expand the scale and number of local businesses.
The development of industrial zones in Vietnam necessitates enhancements in technical infrastructure alongside the expansion of supporting services This dual focus not only bridges the gap between rural and urban areas but also significantly elevates the material and spiritual well-being of local communities As a result, the quality of life for residents improves, social security is fortified, and traditional values are preserved and promoted, fostering a gradual shift towards modernization across the region and the nation.
To enhance connectivity and attract investment, it is essential for the 11 regions to establish a cohesive network linking their infrastructure systems This initiative should also address the housing and recreational needs of migrant workers from a regional perspective The Government's Decree 35/2022/ND-CP aims to provide detailed guidance for projects and businesses investing in industrial zone infrastructure, thereby promoting the development of urban high-speed industrial zones in the surrounding areas.
Industrial zones play a crucial role in enhancing technology transfer, management expertise, and production skills amid international economic integration This technology transfer occurs through various methods, including training workers to operate advanced machinery and equipment, as well as the introduction of modern production technologies.
Positive results have been shown through the ability to use advanced technology and gradually improved production skills of the workforce in industrial zones
The state is prioritizing innovation to enhance the uniform quality of education and improve teaching staff capabilities Numerous universities have established training partnerships and are committed to delivering high-quality human resources to local businesses.
Environmental protection is crucial for businesses, yet individual companies often face high costs for inadequate waste treatment systems In light of the severe pollution challenges in Vietnam today, industrial zones play a vital role in enhancing environmental sustainability by providing shared, efficient waste management solutions that improve output quality and reduce overall pollution.
The State promotes the establishment of Industrial Zones as a key strategy to enable businesses to reduce costs while maintaining environmentally sustainable production practices Additionally, these zones facilitate the relocation of production activities from urban centers and densely populated areas, thereby alleviating congestion and enhancing overall community well-being.
The establishment of 12 suburbs not only minimizes pollution risks in inner-city residential areas but also fosters conditions for business expansion To support the ongoing innovation in industrial zones, the government has swiftly enhanced economic and legal frameworks related to environmental protection in Vietnam Furthermore, it mandates that industrial zones obtain environmental permits prior to commencing operations This approach aims to ensure the rational and efficient use of mineral resources, prevent land degradation, protect water quality, effectively manage water resources, reduce air pollution in urban and industrial areas, and centralize the management of solid and hazardous waste.
Criteria for evaluating sustainable development of industrial zones
1.3.1 Criteria for evaluating sustainable economic development within industrial zones - Location of industrial zones
- Size of area, land use structure in industrial zones - Ratio of industrial land that can be rented to natural land area - Occupancy rate of industrial zones
- A stable increase in output in production and business activities of enterprises in the industrial zones
- Efficiency of business operations in industrial zones
- Technology level and industrial applications in enterprises in industrial zones
- Scope, scale, level of specialization in economic integration - Criteria reflecting the satisfaction of investors' needs
1.3.2 Criteria for evaluating sustainable economic development of areas with industrial zones
- Local social issues affected by the development of industrial zones: security and order, labor structure and changes in the lives of people in areas where industrial zones are located
- Life of workers in industrial zones: income, social welfare, material and spiritual life of workers in industrial zones
1.3.3 Criteria for evaluating environmentally sustainable development of areas with industrial zones
- Criteria for evaluating wastewater treatment from industrial zones: Scale, speed, wastewater treatment flow, wastewater standards; ratio of number of zones Industry has a centralized wastewater treatment system
- Evaluation of solid waste treatment in industrial zones: rate, volume, classification, collection and treatment
Air pollution criteria are essential for assessing air quality both inside and outside industrial zones, particularly influenced by production activities Key indicators include the concentration levels of toxic gases such as sulfur dioxide (SO2), nitrogen dioxide (NO2), ozone, carbon dioxide (CO2), carbon monoxide (CO), and suspended particulate matter (TPM) Additionally, the effectiveness of air pollution control equipment and the investment in operational strategies by enterprises within these zones play a critical role in managing air quality.
- In addition, noise and light pollution are also problems being raised in industrial zones.
The relationship between sustainable development and economic growth
Economists addressing sustainable development emphasize three key concerns: first, they investigate the compatibility of economic growth with sustainable development and social security, questioning whether these elements hinder economic progress Second, they analyze the economic factors contributing to the imbalances in sustainable development Lastly, they explore the necessary actions governments must take to promote and ensure sustainable development effectively.
Many development economists argue that sustainable development and social justice are often seen as luxury goods, with the belief that regulations for sustainability may hinder economic growth However, as the negative effects of environmental issues increasingly threaten quality of life and long-term development, opposition to sustainable development has diminished The discussion has shifted from whether economic growth can coexist with sustainable development to analyzing the economic factors contributing to the imbalance in sustainable development.
Research and assessments reveal a decline in environmental quality and social justice, prompting economists to propose various solutions aimed at promoting sustainable development.
The concept of sustainable development in industrial zones emphasizes stable and long-term industrial growth while ensuring a balance between economic advancement, social equity, and environmental protection This approach aims to address social and economic challenges while maintaining ecological integrity.
Figure 1.3 Three pillars of sustainability
Table 1.1: System of criteria and indicators/indicators for evaluating sustainable development of industrial zones Issue Criteria Criteria/evaluation methods
1 Internal economic sustainability within the industrial zones
(1) Location of the industrial zones
Planning of industrial zones in regions and localities
Accessibility to infrastructure such as roads, ports, airports…
Possibility of negative impacts from the industrial zones location on other sectors other
(2) Scale of industrial zones area
Compare the average size and area structure of industrial zones with the size effective industrial zones model
Evaluation by each stage: Infrastructure construction; Attracting investment according to Decree 29/2008/ND-CP
(3) Area occupancy rate Occupancy rate of S rented x 100 %
(4) Number of investment projects and total investment capital
Scale of investment capital/project Capital/labor ratio…
Sustainability of the local economy with
(1) Contribution to economic growth, economic
Scale and proportion of GDP of industrial zones in GDP of the industrial sector and local GDP
16 industrial zones restructuring of the locality
(2) Impact on local technical infrastructure
Impact of industrial zones on changes in infrastructure outside the industrial zone fence: roads, electricity, water, communications, etc
1 Localities affected by industrial zones development
(1) Number of local workers working in industrial zones
Size and ratio of local workers to total number of workers in industrial zones
(2) Shift in local labor structure
Shift in labor structure by industry, nature of work and by labor qualifications
Rate of local labor use in total number of industrial zone workers
(3) Employment and life of people whose land is recovered for the construction of industrial zones
Change in nature of work and income of households before and after land recovery
2 Workers' life in industrial zones
Average income/month/worker of workers in industrial zones compared to workers in the same profession in other industrial zones and outside industrial zones
Conditions for daily living of workers
Conditions for daily living of workers
Number of cultural, sports, entertainment points serving workers
Number of cultural and spiritual activities organized by enterprises and industrial zone management boards annually
Rate of time spent after work by workers…
Localities and areas with industrial zones
1 Assessment of wastewater treatment in industrial zones
The increasing scale of wastewater discharge from industrial zones poses significant environmental challenges It is crucial to assess the quality of wastewater treatment in these areas, particularly focusing on the percentage of industrial zones that comply with discharge standards Currently, a notable portion meets Type A standards, while others achieve Type B compliance, with some failing to meet even the minimum Type B requirements Addressing these discrepancies is essential for protecting the environment and ensuring sustainable industrial practices.
Percentage and number of industrial zones with centralized wastewater treatment systems
2 Assessment of solid waste treatment in industrial zones
Percentage and number of industrial zones with solid waste treatment and classification systems Methods of industrial zone waste treatment: classification, recycling; on-site treatment…
Percentage and volume of waste collected and treated, especially hazardous waste
Indicators reflecting air quality inside and outside industrial zones: Concentration of toxic gases SO2, NO2, Ozone, CO, TSP; lead…
The issue of investment and operation of air pollution treatment equipment of enterprises in industrial zones.
Develop strategies for sustainable development
1.5.1 External environment analysis and assessment tools
According to Fred R David (2006), the following environmental factors
18 affect businesses: economic environment, political environment, law, natural environment, socio-cultural environment, population and technological environment
The economic environment significantly influences business strategies, often more directly than other external factors Key elements such as the economic growth rate, trends in gross domestic product (GDP), and gross national product (GNP) are crucial for companies to consider when formulating their plans.
The political-legal environment encompasses the guidelines, opinions, and policies of the prevailing legal system, significantly influencing business formation and growth Business activities across nations are governed by legal regulations, international trade practices, and agreements, shaping the operational landscape for enterprises.
Businesses have long acknowledged the significant impact of natural environments on their operations Key natural influences include geographical location, climate, pollution, energy resources, and natural materials These environmental factors are crucial not only for everyday life but also serve as vital inputs for various economic sectors Often, natural conditions play a pivotal role in establishing a competitive advantage for products and services.
The socio-cultural environment significantly influences various aspects of the macro environment, directly affecting economic and social changes that impact business operations Key demographic data is essential for administrators in strategic planning, marketing, distribution, and advertising efforts.
Technology - engineering - science environment: Technology - engineering
Scientific advancements present both opportunities and risks in the strategic management process for businesses The progress in technology and science can lead to the emergence of new markets and products while also rendering existing products and services obsolete.
19 obsolete In this environment, the influence is strong and related to the fields of production, energy, information
According to the model of Michael E Porter (1985), 5 basic elements that form the competitive context are: competitors, buyers, suppliers, potential competitors and substitute products
Competitors: Every business has its strengths and weaknesses Identifying competitors is very important, from which businesses proactively plan their strategies
Customers play a crucial role in the survival of a business, as their trust is one of its most valuable intangible assets The pressure exerted by customers arises from various factors, including purchasing decisions and supply chain dynamics.
Suppliers: Suppliers can assert their power by threatening to increase prices or reduce the quality of products and services provided, or stop providing
Emerging competitors in the industry can significantly impact profits and customer retention by leveraging advantages such as superior production capacity, competitive pricing, or higher quality products Therefore, it is essential to implement effective strategies aimed at maintaining market share and fostering customer loyalty.
Substitute products: Substitute products can reduce potential profit levels, displacing suppliers Substitute products are: trending products that can compete on price, and industries that are highly profitable
Figure 1.4 Forces regulating competition in the business industry
Source: Porter 1.5.1.3 EFE analysis tool:
The External Factors Evaluation (EFE) matrix is a strategic tool used to summarize and assess external information impacting an enterprise, including economic, governmental, legal, social, and technological factors Developing an EFE matrix involves five key steps, with the first step focusing on identifying and cataloging 10 to 20 relevant external factors.
(opportunities and threats) that are critical to the company's long-term success Step
2 : Rate the importance for each of these factors from 1.0 (most important) to 0.0
To assess a company's current strategic position, it's essential to evaluate the influence of various factors over time and their significance levels By comparing successful competitors with those that have struggled, we can effectively classify these factors It's important to ensure that the cumulative importance of all identified factors equals one.
Step 3: Rate each factor from 4 (outstanding-good) to 1 (poor) based on how the company's current strategic direction responds to these factors Thus, this ranking is unique to each company, while the importance ranking in step 2 is industry-specific
Step 4: Multiply the importance of each factor by the ranking score to determine the importance score of each factor
Step 5: Add up the importance scores of all external factors to determine the company's total importance score The total weighted score ranges from 4.0 (Good) to 1.0 (Poor)
A total weighted score of 4.0 reflects that the organization effectively capitalizes on current opportunities and mitigates threats in its environment, while a score of 1.0 suggests that the company's strategies fail to leverage opportunities or evade external risks This scoring system enables a comparison of the company's performance against its industry competitors.
1.5.2.1 Analyze the internal environment and value chain
Philip Kotler (2009) emphasizes the importance of assessing and analyzing the internal environment of a business to identify its strengths and weaknesses This evaluation encompasses various aspects, including resources, marketing strategies, financial health, production processes, operational efficiency, research and development initiatives, and information systems.
Human resources: Human resources are the first important factor in analyzing the internal environment of a business It is necessary to clearly analyze managers at all levels and their executors
Marketing is the process of identifying, forecasting, and satisfying consumer needs for products and services According to Philip Kotler, it encompasses key tasks such as market analysis, target market selection, and the development of marketing programs The nine essential functions of marketing include customer analysis, buying, selling, product and service planning, valuation, distribution, market research, opportunity analysis, and social responsibility.
Finance and accounting play a crucial role in evaluating a company's competitive position and its appeal to investors Key functions in this field include making investment decisions, financing choices, and determining dividend distributions Analyzing financial indicators is essential for identifying an organization's strengths and weaknesses, making it a fundamental practice in finance and accounting.
Key indicators of financial health include solvency and solvency assessment, which reflect the company's ability to meet its short-term obligations Leverage indicates the degree to which the company's debt is supported by its sponsor, while performance and growth indices demonstrate the organization's capacity to sustain its competitive position amid economic growth.
CURRENT STATUS OF SUSTAINABLE DEVELOPMENT OF
General economic and social situation of Hai Phong city
The international and domestic landscape remains complex and unpredictable, with the global economy on a recovery path yet facing significant challenges, including persistent high inflation and tight monetary policies in major economies While global trade, consumption, and investment are declining, the domestic macroeconomy shows stability, controlled inflation, and promoted economic growth, ensuring major economic balances However, the modest scale and limited resilience of the economy have made it vulnerable to the downturn in global trade, impacting production, exports, and financial sectors Despite these challenges, the city has demonstrated a strong commitment to implementing the resolutions from the 16th City Party Congress and the City People’s Council's 5-year Socio-Economic Development Plan (2021-2025), achieving notable progress in socio-economic tasks in 2023.
(1) GRDP growth rate (2010 comparative prices) increases by about 11.5%
- 12.0% compared to 2023, of which: industry and construction groups increase by 13.30% - 13.75%; service group increased by 10.20% - 10.75%; Agriculture, forestry and fisheries group increased by 0.98%; Product tax minus product subsidies increased by 7.40% - 8.40%
(2) GRDP per capita (at current prices) reaches 9,000 USD;
The Index of Industrial Production (IIP) has risen by approximately 15%, with the processing and manufacturing sectors contributing 46.6% to the Gross Regional Domestic Product (GRDP) Furthermore, high-tech industrial products now account for 64% of the total value within these industries.
(4) State budget revenue in the area is 106,761.592 billion VND, of which domestic revenue is 45,000 billion VND; Revenue from export and import activities is 60,000 billion VND
(5) Total social investment capital reached 210,000 billion VND;
(6) Output of goods through the port reached 190 million tons;
(7) Export turnover reached 33 billion USD;
In 2023, the initiative for new rural construction aims to finalize the establishment of 35 model rural communes Following this, from 2024, the focus will shift to implementing model new rural construction in 13 communes located in Thuy Nguyen and An Duong districts.
(10) The proportion of total factor productivity (TFP) contributing to growth reached 44%;
(11) Attracting 2.0 to 2.5 billion USD of foreign investment capital
(12) Urban unemployment rate is at 3.5%
(14) The rate of trained workers reaches 87%, of which the rate of workers trained for 3 months or more with a degree or certificate is 39%;
(15) The proportion of the population participating in health insurance reaches 94%;
(16) The reduction in poverty rate (according to the national poverty line for the period 2022-2025) is 0.38%
(17) The rate of households using clean water according to standards is 100%;
(18) The rate of solid waste collected and treated hygienically: in urban areas reaches 100%; Rural areas: collection and treatment reached 98%, hygienic treatment reached 80%
(19) The rate of urban wastewater treated to meet technical standards is 40.77%
(Report No 447/BC-UBND dated December 4, 2023 of Hai Phong City People’s Committee on Results of implementing economic – social, defense – security tasks in 2023; Objectives, targets, tasks , 2024 solution)
Figure 2.1 Contribution of five centrally-run cities to 2023 socio-economic development
Socio-economic results in the first 7 months of 2024:
- Index of industrial production (IIP): increased by 15% compared to 2023 Implementation results: July 2024 is estimated to increase by 13.76%, 7 months of
2024 is estimated to increase by 15.01% compared to the same period in 2023
In the region, the state budget revenue has reached a total of 106,761.592 billion VND, with domestic revenue contributing 45,000 billion VND and import-export activities generating 60,000 billion VND In July alone, the revenue was 9,088.5 billion VND, comprised of 3,098.1 billion VND from domestic sources and 5,990.4 billion VND from import-export activities Over the first seven months, total revenue accumulated to 59,901.3 billion VND, reflecting a 33.32% increase compared to the same period last year, which is 71.44% of the estimate set by the Central Government and 65.47% of the City People's Council's estimate Domestic revenue for this period reached 32,960.3 billion VND, marking an 85.1% increase and accounting for 87.71% of the Central Government's estimate and 73.25% of the City People's Council's estimate Meanwhile, revenue from import-export activities totaled 35,996.8 billion VND, showing an 8.58% increase over the previous year, which is 61.22% of the Central Government's estimate and 59.99% of the City People's Council's estimate.
In July, tourist arrivals reached approximately 1,254.8 thousand, marking an 18.02% increase compared to the previous year, with international visitors accounting for 92.2 thousand, a rise of 1.3% Over the first seven months, total arrivals are estimated at 5,545.1 thousand, reflecting a 17.07% growth and achieving 60.94% of the annual target, while international arrivals reached 594.8 thousand, up 1.82% from the same period last year.
In the first seven months of 2024, foreign direct investment (FDI) attracted reached 1,671.8 million USD, marking an impressive increase of 82.05% compared to the same period in 2023, which saw 2,037.52 million USD This achievement represents 83.59% of the annual FDI target for 2024, which is set between 2.0 and 2.5 million USD.
- The index of industrial production development (IIP) in July 2024 is estimated to decrease by 8.13% over the previous month and increase by 13.76%
In the first seven months of 2024, the Industrial Production Index (IIP) is projected to rise by 15.01% compared to the same period last year Notably, the processing and manufacturing sector is expected to see an increase of 15.68% Conversely, the mining industry is anticipated to experience a significant decline of 56.74%, while the production and distribution of electricity, gas, hot water, steam, and air conditioning is forecasted to drop by 16.39% Additionally, the water supply industry is also facing challenges during this period.
Waste and wastewater management and treatment activities experienced a slight decline of 0.6% In contrast, commercial activities showed positive growth, with total retail sales of goods and service revenue in July reaching an estimated 19,079.7 billion VND, marking a 2.66% increase from June 2024 and a 13.83% rise compared to the same period last year Over the first seven months, total retail sales of goods and service revenue are estimated at 127,789.6 billion VND, reflecting a 13.35% increase and achieving 57.4% of the annual plan Specifically, retail revenue of goods is estimated at 106,357.1 billion VND (up 13.75%), hotel and restaurant revenue at 14,801.9 billion VND (up 14.81%), travel tourism revenue at 183.7 billion VND (up 11.20%), and other services at 6,446.8 billion VND (up 4.33%).
(Report No 267/BC-UBND dated August 8, 2024 of Hai Phong City People's Committee on the city's socio-economic situation in July 2024)
Hai Phong city is one of the five major industrial hubs in Vietnam, playing a crucial role in the inter-regional economic development of Northern Vietnam It attracts numerous domestic and foreign investors, establishing itself as a significant industrial center The local industrial zones serve as key focal points for large-scale investment projects, contributing to the economic development of the coastal and island regions With a strategic location that enhances both economic growth and national security, Hai Phong currently boasts 11 industrial zones, varying in size and capacity.
1 DEEP C Hai Phong Industrial Zones Complex
2 VSIP Hai Phong Industrial Zones
3 Nam Dinh Vu Industrial Zones
5 Nam Cau Kien Industrial Zones
7 Japanese Industrial Zones - Hai Phong
8 MP Dinh Vu Industrial Zones
In addition, other industrial production projects have also been implemented in economic zones:
VinFast is developing a significant automobile production complex on Cat Hai Island, covering an area of 347.81 hectares, where technical infrastructure is nearing completion and several factories are already operational Additionally, a supporting industrial production complex, spanning 48.0 hectares, is currently under construction to enhance the technical infrastructure on the island.
Hai Phong city strategically plans its industrial and economic zones at key locations in the Northeast, leveraging its advantageous geopolitical and economic position This city serves as a vital hub for inter-regional and international exchanges, with the Hai Phong international gateway port acting as the main maritime access point for the North and the entire country It connects the Economic Zone to major ports such as Hai Ha, Cai Lan, Nghi Son, Vung Ang, Chan May, Da Nang, Van Tuong, Van Phong, Quy Nhon, and Vung Tau Additionally, the Dinh Vu - Cat Hai Economic Zone boasts convenient access to Cat Bi International Airport and an extensive road transport network, primarily consisting of highways that link various provinces and cities across the North and the entire nation Key infrastructure, including the Tan Vu - Lach Huyen bridge and various road systems, further enhances connectivity with Hai Duong, Thai Binh, and Quang Ninh provinces, as well as facilitating waterway and railway transport.
In terms of foreign affairs: located on a cooperation belt and 02 economic
The 32 corridors connecting Kunming, Lao Cai, Hanoi, Hai Phong, and Nam Ninh to Lang Son serve as vital gateways for regional connectivity This network facilitates access from the mountainous inland province of Guangxi in China to ASEAN countries, enhancing trade and economic collaboration Within the China-Vietnam coastal economic corridor, the economic zones (EZ) integrate with urban and port systems along the coastal regions of China, Vietnam, and Southeast Asia Key ports include Sanya, Beihai, Qinzhou, and Phong Thanh in China, as well as Hai Phong, Da Nang, and Vung Tau in Vietnam, extending trade routes to major cities like Phnom Penh, Bangkok, Kuala Lumpur, Singapore, and Manila.
In the area, there are favorable intersection relationships with the coastal urban chain of Mong Cai, Quang Ha, Cam Pha, Ha Long, Hai Phong,
Diem Dien, Tien Hai, Phat Diem, and Tam Diep are strategically linked via the coastal highway to the inland urban chain of Lao Cai, Hanoi, Hai Phong, and Lang Son, Quang Ninh This connectivity is enhanced by the Expressway Hanoi-Hai Phong, facilitating access to Hai Phong urban area and four major urban centers in the coastal belt corridor: Quang Ninh, Thai Binh, Nam Dinh, and Ninh Binh through National Highway 10 The region offers convenient connections to international seaports, promoting collaboration with the neighboring Quang Yen economic zone and expanding opportunities for industrial and logistics development.
Up to now, there have been 7 new industrial zones in operation and 13 are under construction, bringing the total number of industrial zones nationwide to
As of now, there are 412 industrial zones covering a total area of 217.5 thousand hectares Among these, 293 zones are operational, utilizing approximately 92.2 thousand hectares of natural land and 63 thousand hectares designated for industrial use Additionally, 119 industrial zones are currently under construction, encompassing around 37.5 thousand hectares of natural land and 24.7 thousand hectares allocated for industrial purposes.
According to Savills Vietnam, the occupancy rate of industrial zones across the country exceeds 80% in 2023, especially key provinces in the North and South have occupancy rates of 83% and 91%, respectively
Regarding rental prices, CBRE Vietnam forecasts that in the period 2024-
By 2025, industrial land rental prices in both the North and South of Vietnam are projected to rise by 6-10% annually, while ready-built warehouse rental prices are anticipated to see a modest increase of 2-4% per year over the next two years According to CBRE Vietnam's industrial real estate market report for the first quarter of 2024, industrial land rental prices in key Northern markets, including Hanoi, Hai Phong, Bac Ninh, Hung Yen, and Hai Duong, have already surged by 7.8% compared to the previous year, averaging 133 USD/m2 (approximately 3.3 million VND/m2) for the remaining lease term.
Figure 2.2 Supply and Performance of Northern Industrial Zones 2023
Introduction to Deep C Hai Phong Industrial Zones
Figure 2.3 Sustainability Governance Structure of Deep C
DEEP C Industrial Zones, established through a joint venture between Belgian investor DEEP C Holding and the People's Committee of Hai Phong, has become a leading industrial zone developer and operator in Vietnam With origins dating back to 1997 as Dinh Vu Industrial Zone in Hai Phong, DEEP C has successfully expanded into Quang Ninh Province, currently managing five industrial zones that cover a total area of 3,400 hectares This growth is attributed to effective Foreign Direct Investment (FDI) optimization strategies implemented by DEEP C's Board of Management.
Deep C's prime locations adjacent to major seaports, expressways, and an airport offer significant benefits for various sectors such as automotive, logistics, light manufacturing, and general industry This strategic positioning allows businesses to utilize efficient transportation networks, effectively reducing logistics expenses In addition to offering industrial land, DEEP C provides a wide range of services through its 10 subsidiaries and joint ventures, fostering a well-integrated operational ecosystem.
DEEP C is strategically located to attract global investment and develop a robust industrial ecosystem in Vietnam, backed by experienced management and strong stakeholder engagement The company has successfully built a diverse client base from countries such as China, Japan, Korea, Sweden, Taiwan, and Vietnam, highlighting its solid financial position and future growth potential DEEP C's commitment to delivering high-quality industrial zone solutions makes it an appealing choice for a wide range of international investors.
Deep C Hai Phong Industrial Zones, established on April 2, 1997, is a significant industrial project in Hai Phong city, developed by Dinh Vu Industrial Zones Joint Stock Company, which is predominantly foreign-owned with 75% of its shares held by foreign investors and 25% managed by the Hai Phong City People's Committee Covering a total area of 541.46 hectares, the project is being executed in two phases.
Phase 1 of the Dinh Vu Industrial Zones spans 164 hectares and began construction in 1997, with an approved investment capital of $79.93 million This phase features an integrated industrial zone encompassing heavy and light industries, as well as chemical and petrochemical sectors Additionally, it includes a comprehensive system of liquid cargo ports and seaports directly within the industrial area.
Phase 2 of the Dinh Vu Industrial Zone encompasses a planning area of 377.46 hectares, with 294.73 hectares designated for industrial use The detailed planning for this phase was approved at a 1/2000 scale by the Ministry of Construction in Decision No 774/QD-BXD on May 11, 2006, and further detailed planning at a 1/500 scale was sanctioned by the Hai Phong City People's Committee in Decision No 2278/QD-UBND on March 3, 2010.
Total investment capital is 88 million USD and is characterized as a heavy industrial, light industrial, chemical and petrochemical industrial zones
On October 3, 2012, the Prime Minister approved the general planning for the Dinh Vu - Cat Hai Economic Zone, outlining its development strategy until 2025 This plan includes the establishment of Dinh Vu industrial zones as a key component of the economic zone's industrial development framework.
The Dinh Vu - Cat Hai economic zone, home to the Dinh Vu Industrial Zones (Deep C I Hai Phong), offers attractive tax incentives that significantly enhance its appeal to both domestic and foreign investors This strategic planning within the economic zone boundary facilitates the attraction of various investment projects, fostering economic growth in the region.
Deep C Industrial Zones are strategically designed as multi-industry hubs aimed at attracting investment in various sectors, including renewable energy components, automobile manufacturing and spare parts, chemical and petrochemical industries, heavy industry, supporting industries, and warehousing and logistics services.
Figure 2.4 Planning of Deep C industrial zones in Hai Phong until 2030
Table 2.1 Overview of the scale of Deep C Hai Phong industrial zones Industrial
Zone Location Scale Operation period
Dinh Vu – Cat Hai Economic Zone, Dong Hai 2 Ward, Hai An District, Hai
Tan Vu – Lach Huyen Bridge Roundabout, Dong Hai 2 Ward, Hai An
Dinh Vu – Cat Hai Economic Zone, Cat Hai District, Hai Phong City 520 ha 520 ha 50 years (2014
(Source: Project Department) 2.1.1 Mission, vision & core values
(1) Mission: Provide a sustainable and reliable investment location for Customers when expanding investment and operations in Vietnam
(2) Vision: Become the first Eco-Industrial Zones in Vietnam
DEEP C embodies clarity and transparency, fostering an environment of openness and sincerity This commitment not only reflects our core values but also attracts clients who resonate with our ethical principles, ensuring a strong alignment in our partnerships.
- Contribution - Contribution: DEEP C is more than just a for-profit business, we strive to make a difference in the communities where our employees and customers live in
- Client Centric - Customer is the center: We make decisions to best serve customers As customers grow, DEEP C grows
- Circularity - Circularity: We promote economic growth along with future orientation, respect for the living environment and concern for sustainable development in every step
Abundant land fund for industrial real estate development DEEP C
The Industrial Zones Complex comprises five industrial zones, with three located in the Dinh Vu - Cat Hai Economic Zone in Hai Phong City and two situated within the Quang Yen Coastal Economic Zone in Ninh Binh Province.
All 5 industrial zones are connected to each other, forming one of the largest industrial zones complexes in Vietnam with a scale of 3,400 hectares in the center of economic and infrastructure development in the North Ready-built factories and warehouses: Deep C’s ready-built factories/warehouses provide investors with a quick solution, saving initial investment costs and low risks when starting to establish a business production business and penetrating the Vietnamese market This is also the optimal solution for Investors who want to shorten construction time and enter the production and operation phase quickly and conveniently
Industrial zones and production facilities, along with handicraft industries, have been established and are continuing to grow These industrial zones feature well-developed infrastructure, achieving an average occupancy rate of 63.8%.
(1) Dinh Vu industrial zones (DEEP C1):
DEEP C1 Industrial Zones, developed by Dinh Vu Industrial Zones Joint Stock Company, spans a total area of 541.46 hectares and is executed in two phases The industrial zones feature fully developed, synchronous infrastructure and boast an impressive occupancy rate of 97.8%.
(3) Nam Dinh Vu Industrial Zones (zone II) (DEEP C2A):
DEEP C2A Industrial Zones, developed by Hai Phong Industrial Zones Joint Stock Company (HPIP), spans 513.4 hectares and is currently enhancing its technical infrastructure along with a wastewater treatment plant that will serve both DEEP C2A and the adjacent DEEP C1 industrial zones, which has an occupancy rate of 17.9% The majority of the land within the project is designated as water surface area, and its development is contingent upon the construction of the Nam Dinh Vu sea dyke The City People's Committee has appointed the Urban Infrastructure and Economic Zone Construction Investment Project Management Board as the investor responsible for the Nam Dinh Vu sea dyke construction project.
(4) Maritime industrial and service zones (DEEP C2B):