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Hai Phong, Vietnam, is undergoing a transformative period following a landmark administrative merger with neighboring Hai Duong province in mid-2025. The consolidation, finalized in July 2025 with the implementation of Resolution No. 226/2025/QH15, has created a significantly expanded Hai Phong City, covering 3,194.72 square kilometers and encompassing a population exceeding 4.7 million people.
Positioned as Vietnam’s key commerce gateway, the newly unified city is poised to lead investment, logistics, and institutional reforms in northern Vietnam, according to Vietnam Briefing. The merger blends Hai Duong’s strengths in industrial and agricultural production with Hai Phong’s established role in national defense, industrialization, and economic modernization, serving as a crucial hub for trade, and logistics.
Early indicators suggest the restructuring is yielding positive results. Faster administrative procedures, improved project deployment rates, and enhanced coordination between city and district agencies are supporting industrial and urban growth. Notably, Hai Phong rose to first place in the Provincial Competitiveness Index (PCI) in 2025, after seven consecutive years ranking among the top ten nationwide, signaling a marked improvement in governance and the business environment.
The city’s economic performance remains robust. In 2025, Hai Phong recorded an export turnover of approximately US$50.14 billion, solidifying its position as a leading export hub in the region. Cargo throughput at seaports totaled 238 million tons, further bolstering its competitiveness in international trade. The city’s Gross Regional Domestic Product (GRDP) reached US$29.4 billion, with a per capita GRDP of US$7,944.5.
A key component of Hai Phong’s development strategy is its advanced port system. Lach Huyen International Port, now operational with six deep-water berths, can accommodate some of the world’s largest container vessels, contributing to Hai Phong Port’s ranking among the top 30 busiest container ports globally. Nam Dinh Vu Port adds further capacity, handling over 600,000 TEU annually, while plans are underway for Nam Do Son International Transshipment Port to enhance maritime throughput.
Land connectivity is too being prioritized, with improvements to the Hanoi–Hai Phong Expressway and ongoing investments in urban and regional road projects. Cat Bi International Airport is undergoing expansion, including a new passenger terminal and a dedicated cargo facility. The Kunming–Lao Cai–Hanoi–Hai Phong railway also provides crucial transport links.
To support this growth, Resolution No. 226/2025/QH15, approved by Vietnam’s National Assembly, introduces pilot special mechanisms and policies. These include granting the Hai Phong People’s Committee the authority to approve investment decisions for large port and marine infrastructure projects (over VND 2.3 trillion, or approximately US$88.85 million) without requiring prior Prime Minister approval. The city will also retain 100 percent of the revenue collected from inland waterways and ports within its territory, allowing for reinvestment in logistics infrastructure.
The resolution also mandates the establishment of a Hai Phong Free Trade Zone (FTZ) with preferential corporate income tax rates, visa exemptions, and long-term residency permits for foreign experts and skilled personnel. A 10-year personal income tax reduction (50 percent) is also offered to qualified workers in approved industrial and economic zones, including the FTZ.
Several industrial parks are driving investment and development. DEEP C Industrial Zones (Hai Phong I, II, and III) offer integrated utilities and direct access to key infrastructure. VSIP Hai Phong represents a large-scale industrial-urban complex, while Nam Dinh Vu Industrial Park boasts an internal seaport. Trang Due Industrial Park has attracted major investors, including LG Group, and is becoming a high-tech manufacturing hub. BW Industrial also offers ready-built factory and warehouse spaces in the region.
Foreign direct investment continues to flow into Hai Phong, particularly in manufacturing and technology sectors. Major investors include LG, Pegatron, USI, and Bridgestone. The city is actively seeking investment in high-tech manufacturing, large-scale projects, and technology-driven production, aligning with Vietnam’s broader goals for industrial upgrading and value-chain integration.
Paul Tonkes, Industrial Deputy Director of Indochina Kajima Development, stated that Hai Phong’s trajectory toward becoming Vietnam’s largest port is becoming increasingly tangible, and that the city is a “frontline instrument” for Vietnam’s international standing and its ambition to achieve a US$1 trillion economy.
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