Construction of the Quang Ngai – Hoai Nhon section of the North-South Expressway (Photo: VietnamPlus)

At a forum held at the end of 2024, Quang Ninh, Haiphong, Hai Duong, and Hung Yen agreed on plans to tighten links to create better conditions to entice and help investors join deeply in the global supply chain.

They will jointly focus on funding modern infrastructure and regional links in developing multimodal transport systems, improving the quality of logistics services. Parties propose mechanisms for the area to boost strengths of each locality in attracting investment and developing sustainable industries.

The three provinces and city of Haiphong will cooperate in training high-quality personnel and meeting the needs of production and business in the region. In addition, they will encourage the formation of research and development, and innovation centres on the eastern expressway, improve capital absorption and participation in smart production and supply chains.

“Localities along this axis have several advantages to form and a creative urban region with industrial parks. This region will utilise resources and advantages of cities and provinces, create a large, dynamic development space and maximise productivity of the local supply chain,” said Tran Thi Hong Minh, director of the Central Institute of Economic Management, at the forum.

“The industrial areas will help each other. The requirement is that industrial areas need to maintain the connection to create effective cooperation, avoiding copying each other, leading to excessive competition.”

Linking these localities will create a region with a total natural area, tripling the area of Hanoi, five-fold larger than Ho Chi Minh City and eight times larger than Danang. The total population is nearly six-fold higher than Danang, equal to nearly 80 per cent of Hanoi’s population and nearly 70 per cent of Ho Chi Minh City.

“The shift in value chains and production supply chains is taking place strongly and is increasingly moving towards high technology and smart manufacturing, while Vietnam continues to be considered as an alluring investment destination and a new manufacturing hub in Asia,” said Pham Duc An, Chairman of Quang Ninh People’s Committee.

Participating in economic links, each area has its own strengths to exploit, An said.

“Quang Ninh attracts large manufacturers, services, and production-trade chains associated with the Chinese market. Haiphong has special potential in terms of seaports and logistics. Hai Duong has human resources, land, and a central location in the region. Meanwhile, Hung Yen has advantages due to its proximity to Hanoi, and great potential in industrial development,” An added.

The four also lead the country in attaining foreign direct investment (FDI), with major projects from Samsung, LG, Foxconn, Pegatron, USI, Bridgestone, and other multinational corporations. The investment environment is increasingly transparent and favourable, especially due to administrative reforms and support for businesses.

In 2024, Haiphong and Quang Ninh were named in the top five localities acquiring the largest FDI influx. Haiphong attracted an impressive $4.7 billion of FDI last year, up 235 per cent on-year. The statistics underscore the city’s strengths in modern infrastructure, favourable policies, and a strong commitment to sustainability and environmental protection.

“The linkage is a sub-regional model to optimise resources, exploit the strengths of each province, and enhance interprovincial cooperation,” said Pham Tan Cong, chairman of the Vietnam Chamber of Commerce and Industry.