According to the Department of Industry and Trade of Hai Phong City, the city's industry focuses on developing key industries such as: Electronics - information technology industry, high-tech application industries; mechanical engineering industry of machinery and equipment manufacturing; supporting industries serving key industries to increase production value and participate in the global value chain.
In addition, the city also maintains the development of traditional industries with advantages such as: manufacturing of means of transport; manufacturing of metal products; manufacturing of electrical equipment; chemicals - plastics; food processing; textile, leather and footwear industry. In the period of 2019-2023, Hai Phong City's industry is basically developing in accordance with the set orientation.
LG Display Vietnam contributes to promoting the development of Hai Phong's supporting industry. Photo: ITN
Hai Phong attracts and encourages enterprises to invest and produce supporting industries (CNHT) to provide on-site raw materials, details, components, semi-finished products... for the city's key industries such as mechanics, electronics, automobile industry, textiles, footwear, logistics . According to statistics, FDI enterprises in Nomura Industrial Park (IP) produce protective airbags, automobile steering wheels, electrical wiring, components for automobile fuel supply units, automobile speaker systems... meeting international quality standards. The remaining domestic establishments produce components, accessories, and detail assemblies to serve enterprises manufacturing and assembling trucks.
Recently, the People's Committee of Hai Phong City has granted the Investment Registration Certificate to increase capital for the LG Innotek Hai Phong Factory Project in the period of 2023 - 2025 with a capital of 1 billion USD, bringing the total investment capital of the project to more than 2 billion USD. This is a factory specializing in the production of electronic components for the supporting industry, automobile industry, mobile phone, phone camera modules...
LG Display Vietnam Co., Ltd. in Hai Phong has also increased its capital twice, bringing its current total investment capital to 4.65 billion USD and is preparing to complete the construction of the new H3 factory on an area of over 4 hectares in Trang Due Industrial Park. With thisinvestment , the company will increase the output of its auxiliary products, plastic OLED screens, from 9.6 - 10 million products/month to 13 - 14 million products/month. Accordingly, it is expected that export revenue will increase by about 6.5 billion USD/year; contribute an additional 25 million USD/year to the budget, and create jobs for about 10,000 workers.
A representative of the Hai Phong City Economic Zone Management Board said that in FDI projects in economic zones and industrial parks in Hai Phong, more than half of the investment capital is focused on supporting industries such as: electronics, telephone, computer manufacturing...; 22.3% of the capital is for the manufacturing of automobiles, motorbikes, machinery, equipment, tools, spare parts...
At the recent working session between the Department of Industry and Trade of Hai Phong City and the Department of Industry (Ministry of Industry and Trade), the representative of the Department of Industry and Trade of the city proposed to consider researching and issuing incentives and support for the production of basic materials such as steel (for mechanical industries); raw materials, fabrics and leather for the textile and footwear industries; petrochemical products such as plastic pellets, plastic molds, synthetic rubber, synthetic fibers... to ensure input for supporting industries as well as downstream industries.
The Department of Industry, Ministry of Industry and Trade works with the Department of Industry and Trade of Hai Phong City on the development of industry and supporting industry. Photo: ITN
Deputy Director of the Department of Industry, Ministry of Industry and Trade Pham Tuan Anh said that the above products are in the List of priority supporting industrial products for development in Decree 111/2015/ND-CP dated November 3, 2015 of the Government on supporting industrial development.
Projects producing the above products enjoy support and incentive policies in Decree 111, specifically: corporate income tax incentives (exemption for 4 years, 50% reduction for the next 9 years, tax rate of 10% for 15 years), import tax, exemption and reduction of land rent...
“Currently, the draft Decree 111/2015/ND-CP has been revised, updated, and supplemented with a number of products in line with current development trends and added a number of new support and incentive policies such as credit support, research and development support, and creating conditions for small and medium-sized enterprises to develop production and business,” said Mr. Tuan Anh.
Minh Lam
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