A Pioneering Model in Northern Vietnam

In mid‑2025 Hai Phong City and Hai Duong Province were merged into a single municipal unit, creating a larger Hai Phong that now covers 3,194.72 km² and houses more than 4.7 million people. The new city is positioned as Vietnam’s main commerce gateway, combining Hai Duong’s industrial‑agricultural base with Hai Phong’s defence‑industrial legacy and its deep‑water port network.

Expanded administrative and economic footprint

The unified Hai Phong now ranks among the country’s biggest municipal economies in both area and population. Early results show faster administrative procedures, higher on‑time project delivery, and tighter coordination between city and district agencies.

In 2025 Hai Phong topped the Provincial Competitiveness Index (PCI) for the first time and also leads national rankings for the Public Administration Reform Index, the 2024 Satisfaction Index of Public Administrative Services, and the Provincial Green Index.

Area: ≈ 3,195 km²
Population: over 4 million
Administrative units: 114 (67 wards, 45 communes, 2 special zones)
GRDP: US$29.4 billion (per‑capita US$7,944.5)
Newly licensed investment projects: 37 projects worth US$3.09 billion
State budget revenue: US$7.21 billion

Strategic planning and special support

Vietnam’s National Assembly adopted Resolution No. 226/2025/QH15 in June 2025, effective 1 July 2025. The resolution grants Hai Phong’s People’s Committee new powers to approve large port‑related investments (≥ VND 2.3 trillion) without prior Prime Minister approval, retain 100 % of fees from inland waterways, and launch a Free Trade Zone (FTZ) with preferential tax, visa and residency incentives for foreign talent.

The FTZ is expected to become a hub for export‑oriented industries, supported by a 10‑year personal‑income‑tax reduction of 50 % for qualified experts and scientists.

Infrastructure and industrial ecosystem

Hai Phong’s multi‑modal transport network underpins its logistics advantage. Key projects include:

Lach Huyen International Deep‑Water Port – six berths, vessels up to 18,000 TEU
Nam Dinh Vu Port – capacity > 600,000 TEU/yr
Nam Do Son International Transshipment Port (planned)
Hanoi–Hai Phong Expressway (six lanes)
Tan Vu–Lach Huyen Bridge – > 5 km, longest sea‑crossing bridge in Southeast Asia
Cat Bi International Airport expansion
Kunming–Lao Cai–Hanoi–Hai Phong railway
Inland waterway network with nine corridors

FDI profile and target sectors

Export turnover in 2025 reached US$50.14 billion, with seaport cargo throughput of 238 million tons. Foreign direct investment remains focused on high‑tech manufacturing, large‑scale capital‑intensive projects and technology‑driven production. Major investors such as LG, Pegatron, USI and Bridgestone have committed multi‑billion‑dollar projects in the city’s industrial zones.

Key industrial parks

The Dinh Vu–Cat Hai Economic Zone (22,540 ha) hosts several flagship parks:

DEEP C Industrial Zones I‑III – eco‑industrial parks with direct access to Lach Huyen port, Cat Bi Airport and the Hanoi–Hai Phong expressway.
VSIP Hai Phong – 1,600 ha integrated industrial‑urban complex, US$1 billion planned investment.
Nam Dinh Vu Industrial Park – 1,329 ha coastal park with its own seaport (up to 40,000 DWT).
Trang Due Industrial Park – 1,088 ha high‑tech hub anchored by LG.

Ready‑built factory and warehouse options

Developers are offering quick‑deployment facilities to meet growing demand:

Core5 Hai Phong Phase 2 – 80,676 m² of ready‑built space, handover Q4 2026.
Core5 Hai Phong Phase 3 – 84,037 m², LEED‑aligned design, handover Q1 2027.
BW Industrial’s portfolio – multiple RBF/RBW projects located near Lach Huyen port and Cat Bi Airport.

Did You Know? Resolution No. 226/2025/QH15, approved in June 2025, gives Hai Phong the authority to approve large port‑related investments without waiting for Prime Minister sign‑off.

Expert Insight: The merger creates a critical mass that aligns industrial land with world‑class port infrastructure, positioning Hai Phong to become a primary logistics gateway for northern Vietnam. The new FTZ and fiscal incentives could attract more high‑tech manufacturers, but the city’s ability to sustain rapid infrastructure rollout will be the decisive factor in realizing its growth potential.

Frequently Asked Questions

What territories were merged to form the new Hai Phong?

The merger combined Hai Phong City and Hai Duong Province into a single municipal unit.

Which major infrastructure projects are part of Hai Phong’s development plan?

Key projects include the Lach Huyen International Deep‑Water Port, Nam Dinh Vu Port, Nam Do Son International Transshipment Port, the six‑lane Hanoi–Hai Phong Expressway, the Tan Vu–Lach Huyen Bridge, Cat Bi International Airport expansion, the Kunming–Lao Cai–Hanoi–Hai Phong railway, and an inland waterway network with nine corridors.

What incentives does the new Free Trade Zone offer to foreign investors?

The FTZ provides preferential corporate income tax rates, visa exemptions and long‑term temporary residence permits (up to 10 years) for qualified foreign experts and their families, and streamlined investment procedures. It also includes a 10‑year personal‑income‑tax reduction of 50 % for eligible highly skilled workers.

How might Hai Phong’s expanded role affect your company’s regional strategy?