Hai Phong – Breakthrough motivation from specific policies

At the second session, the National Assembly of XV, Hai Phong City, and 3 other localities agreed with the National Assembly to pilot several specific policy mechanisms on budget, fee collection mechanisms, fees, salaries, etc.

Mr. La Thanh Tan, a Deputy Head of the National Assembly Delegation in charge of Hai Phong, said that for the resolution on piloting mechanisms and policies specific to the development of Hai Phong city, through discussion, many National Assembly deputies expressed very high consensus.

Because Hai Phong has been confirmed to be a locality with the strategic position of being the main gateway to the sea of the North, playing an important role in the growth triangle Hanoi, Hai Phong, and Quang Ninh. The city is currently growing strongly, with a high economic growth rate, financial autonomy, and plenty of room for development. The new specific mechanisms and policies to respond to the expectations of the people will create opportunities, resources, promote development, and create a regional spread.

Mr. Nguyen Dinh Cung, former Director of the Central Economic Management Research Institute also said: Hai Phong has had a long time of development that is not worthy of its great potential and advantages. Hai Phong’s economic size in 2020 has tripled compared to 2010 but only accounts for 3.66% of the country’s GDP.

One of the reasons given by Mr. Cung is that Hai Phong has not mobilized many resources to invest in socio-economic infrastructure. Hai Phong needs to expand the development space, break the boundaries of administrative boundaries, open up the whole region and the world to take opportunities from the changing trends of the times. In particular, it emphasizes the factors of urbanization, investment restructuring and reorganization of production forces, scientific and technological development, etc. Hai Phong must also take into account the testing of the new national institutions as superior and distinct institutions to pave the way for development.

To take each step carefully and thoroughly research, the Government will direct relevant ministries and sectors to coordinate with Hai Phong City to develop its project to report to the Politburo for comments and submit it to the National Assembly at the appropriate time.

In the short term, Hai Phong has been approved by the 15th National Assembly, agreeing to score several specific policies on budget, fee collection mechanism, fees and salaries.

Regarding financial and budget management policies, Hai Phong City is borrowed through the issuance of local government bonds, domestic and external loans (both financial institutions and external) and from government sources borrowed from abroad to lend back to the city. 

The total outstanding loan does not exceed 60% of the city’s budget revenues entitled according to the decentralization. The total annual borrowing and overspending are decided by the National Assembly following the State Budget Law. Annually, The State budget has a target for the city to not exceed 70% of the increase in the central budget revenue in the area.

About fees, the People’s Council of Hai Phong city is allowed to assess fees outside the list enclosed by the Law on fees, to adjust the rate or the rate of a collection with charges from the above list which have been decided by the competent authorities. This particular policy does not apply to court fees.

The city budget enjoys 100% of the increased revenue from adjusting fees to invest in socio-economic infrastructure and other spending tasks. The pilot of this fee and fee policy must have a roadmap, following the level and requirements of development; creating a favorable production and business environment for businesses, etc.

Regarding land management, the City People’s Council shall decide to change the purpose of using rice land on a scale of fewer than 500 hectares, following the land use plan that has been decided by competent authorities.

In terms of planning management, based on the planning plan for the construction of functional areas and urban planning approved by the Prime Minister, the Prime Minister decided to decentralize the People’s Committee of the city to approve the local adjustment of the general planning for the construction of functional areas, urban general planning in order, etc. The procedure is decided by the Prime Minister and reports the results. 

This resolution took effect on January 1, 2022, and was implemented for five years.


At a meeting with voters in Hai An district (Hai Phong) in mid-November 2021, Chairman of the National Assembly Vuong Dinh Hue said that the specific policy mechanism just adopted will help Hai Phong develop with “stature”, becoming a driving force for the region and the whole country.

From an enterprise perspective, Mr. Nguyen Thanh Phuong, General Director of Sao Do Group said that specific mechanisms and policies play an important role in the development of the city. Since it helps remove many barriers and gives the city the right to make decisions on issues relating to land and planning.


What previously had to wait, asking the opinion of the Central Committee with a lot of procedures and taking a long time, could miss the time to attract gold investment. The application of this mechanism will help increase the attractiveness of Hai Phong in attracting investment and implementing large projects, welcoming “eagles”. Enterprises, especially industrial infrastructure enterprises such as Sao Do Group, are very responsive, Phuong affirmed.

Currently, Sao Do Group is accelerating the completion of phase II infrastructure of Nam Dinh Vu Industrial Park to serve the needs of secondary investors. The fact that the procedures related to land and planning are decentralized to the City government will help accelerate the process of investment in new projects. Moreover, Hai Phong will have more financial resources to invest in the city’s infrastructure development, thereby helping to increase the attraction of this city to domestic and foreign investors.