Hai Phong Launches 6,200-ha Free Trade Zone, Targets Semiconductor Investment

Hai Phong City, Vietnam's northern port hub, officially launched its 6,200-hectare free trade zone on July 30. This zone is part of the city's Southern Coastal Economic Zone, envisioned as a new growth driver focused on green and circular development. The free trade zone spans three locations: the Chan Hung - Hung Thang area, Lach Huyen Port, and Nam Dinh Vu. It will implement special preferential policies for investment procedures, land, customs, and import-export to strongly attract investments in priority sectors such as semiconductors, digital infrastructure, and logistics. The Nam Do Son Port is also being developed as a national key trade gateway, aiming to become a green, smart, and duty-free port. Deputy Prime Minister Le Tien Chau emphasized the need for Hai Phong to prioritize shared infrastructure with broad ripple effects, including connectivity, seaports, digital infrastructure, energy, and worker housing. He also called for a unified investment promotion agency and for supporting existing investors as the most effective promotion method. "The decisive advantage must be a proactive government that considers the time and costs of businesses as social resources," he stated. On the same occasion, Hai Phong City granted registration certificates and investment memorandums for projects totaling $3.2 billion. Among these, LG Innotek Vietnam plans to invest $1 billion in a semiconductor chip manufacturing plant within the free trade zone. As of July 22, Hai Phong has attracted approximately $3.26 billion in foreign direct investment (FDI), a nearly 72% increase from the $1.9 billion recorded in the same period last year. About 90% of this foreign capital comes from enterprises within industrial parks and economic zones, totaling $2.94 billion. Cumulatively, Hai Phong hosts 1,868 active FDI projects with a total registered capital of $54 billion. Source: VnExpress