At a ceremony on Thursday, Hai Phong authorities announced two prime ministerial decisions: the establishment of the 5,300-hectare Hai Phong Special Economic Zone and the master plan for the city's Southern Coastal Economic Zone, covering about 20,000 hectares through 2050.

The free trade zone, the first of its kind in Vietnam, will operate under especially favorable policies covering infrastructure, taxation, customs procedures, trade and financial services

These are pivotal decisions that lay the groundwork for the city to create new development spaces - expanding industrial zones, urban areas, and seaport and logistics services - while attracting high-tech, high-value-added projects and generating new growth momentum for Hai Phong.

Authorities said the initiative is intended to strengthen Hai Phong's position as a "globally competitive coastal megacity and a hub for logistics and the marine economy in East Asia."

Hai Phong has attracted more than 1,868 foreign direct investment (FDI) projects with registered capital exceeding $54 billion, accounting for nearly 10% of Vietnam's total registered FDI. Several major domestic conglomerates are also developing large-scale projects in the city.

The city has maintained double-digit gross regional domestic product (GRDP) growth for 11 consecutive years, making it the only locality in Vietnam to sustain such a pace over that period.

Hai Phong Party chief Le Ngoc Chau said the city aimed to become one of Vietnam's leading economic centers, a strategic regional and international trade gateway, and a major seaport city, while expanding industries including logistics, port services, tourism, education, science and technology. It also plans to continue investing in transport infrastructure, digital transformation, green development and innovation.

Chau said the municipal government remained committed to supporting businesses and investors by improving the investment climate, addressing administrative bottlenecks, and ensuring a transparent and stable business environment.

During the event, Hai Phong awarded investment registration certificates and signed memorandums of understanding (MoUs) for projects worth approximately $3.2 billion.

The city granted new investment registation certificates and approved capital increases for 13 projects with combined investment of about $2.6 billion.

Among the largest was a $1 billion second-phase investment by LG Innotek Vietnam Co., Ltd. at the Nam Dinh Vu Industrial Park (Zone 2), also called the Deep C Hai Phong 2, developed by DEEP C and located within the Hai Phong Free Trade Zone.

Authorities also signed two MoUs on industrial park development with expected investment of $540 million, including plans for four new industrial parks: Tien Lang 2, Trung Lap Phase 1, An Hoa and Gia Loc 3.

Deputy Prime Minister Le Tien Chau said the launch of the free trade zone and the new economic zones marked the beginning of a new stage of development for Hai Phong and demonstrated the government's commitment to domestic and international investors.

He said Hai Phong's future growth strategy would be anchored by three major economic areas: the Dinh Vu-Cat Hai Economic Zone, the Southern Coastal Economic Zone, and the Hai Phong Special Economic Zone.

The free trade zone, he added, should serve as the institutional platform linking these economic spaces into an integrated ecosystem.

If implemented effectively, the model could strengthen Hai Phong's role as a strategic growth engine for northern Vietnam by connecting manufacturing, international trade and technology investment, he said.

Chau called on local authorities to establish a unified development strategy across the city's economic zones and industrial parks, prioritize investment in shared infrastructure, and develop the free trade zone as a pilot area for internationally aligned governance and digital one-stop administrative services.

He also urged the city to shift its focus from the quantity of investment to quality, prioritizing strategic investors in semiconductors, electronics, precision engineering, electric vehicles, clean energy, and logistics while ensuring green and sustainable growth.

Hai Phong People's Committee Chairman Do Thanh Trung said the city would move quickly to implement the central government's policies and develop the Hai Phong Free Trade Zone into a model that could be replicated elsewhere in Vietnam.