Economic connection to the East highway axis: Towards a model of sub-regional connection, promoting development

From the initiative of the Vietnam Chamber of Commerce and Industry (VCCI), the high unity of 4 provinces and cities on the Eastern highway axis: Hai Phong, Quang Ninh, Hai Duong, Hung Yen together towards building a sub-regional economic connection model, creating new development space, maximizing the advantages of each locality, thereby creating growth poles in the Red River Delta and the Northern region.

Create more space to thrive

Regional economic linkage is one of the strategic directions of our Party and is clearly stated in the document of the 13th Party Congress, as well as in the 10-year socio-economic development strategy for 2021-2030. To concretize, in April 2022, the Government issued Resolution No. 57/NQ-CP on tasks and solutions to perfect the institution of socio-economic region linkage, which emphasizes the proactive role linkages of provinces and cities.

From the context and assessment of the potential and unique advantages of 4 provinces and cities, VCCI has initiatives and ideas to link and connect the Eastern highway: Hanoi – Hai Phong – Mong Cai. After only about 3 months, from the initial idea, through many consultation activities, with the very consensus of the leaders of 4 provinces and cities, the Eastern Expressway Economic Connection Project is built, as a premise for substantive and effective activities between localities.

The connection project creates new development opportunities and spaces for all four localities. The total natural area of the 4 provinces and cities is 3 times larger than Hanoi Capital, 5 times larger than Ho Chi Minh City and 8 times larger than Da Nang. The population size of the 4 localities is nearly 6 times that of Da Nang, nearly 80% of Hanoi’s population and nearly 70% of Ho Chi Minh City’s population. The four localities also have similarities and are closely linked in the Northern Key Economic Zone when they are located on the highway connecting Hanoi with Hai Phong and Quang Ninh, passing through Hung Yen and Hai Duong. More importantly, all four localities have dynamism in economic development and improving the business investment environment. Quang Ninh and Hai Phong lead the Provincial Competitiveness Index (PCI) rankings in 2021, while Hai Duong and Hung Yen are the most progressive localities in the country according to the latest PCI results.

However, compared with the largest economic centers of the country such as Hanoi or Ho Chi Minh City, all four localities have less developed infrastructure, smaller market size, business density, lower number and scale of investment projects. According to VCCI Chairman Pham Tan Cong, economic linkages between the four localities will expand the development space in both width and depth. When linking, localities will have full potential and conditions to form a dynamic economic development area. Because Hai Phong has a large international seaport; Quang Ninh has border gates on land and at sea, connecting to the world’s largest market, China. Hai Phong and Quang Ninh both have international airports and synchronously connected transport infrastructure. Hung Yen and Hai Duong have abundant human resources, together with a large and potential economic development space… Therefore, the economic linkage model will strengthen and bring into full play its potential, the existing strengths of all 4 localities, offset the disadvantages of resources. Since then, the four localities have a common advantage to strongly promote the development of businesses, attract more good quality investment projects, overcome logistics limitations and also improve general business environment quality in the region.

Promote Hai Phong’s advantages in traffic and logistics

With its own strengths and potential advantages in terms of traffic, logistics services as well as infrastructure of Industrial Zones and economic zones, the economic connection with localities in the Eastern highway will create more opportunities, expand the development space for the city. In particular, thanks to a special type of seaport infrastructure, notably the international gateway port at Lach Huyen, capable of receiving container ships of up to 12,000 TEUS, equivalent to 132,000 DWT. The expansion and construction of berths 3, 4, 5, 6 in Lach Huyen has been approved by the Prime Minister and is being implemented by investors. Total throughput of goods through Hai Phong port increased rapidly, reaching 151.1 million tons in 2021, with an average growth rate of 15.1%/year. Particularly in the first 6 months of 2022, the volume of goods passing through the port is estimated at 70.79 million tons, up 7.87% over the same period, equaling 42.14% of the year plan. Hai Phong is a locality with strengths in geographical location, full of 5 types of traffic, development of logistics service system. System of warehouses and yards for logistics services, with a total area of more than 700 hectares of warehouses and yards, distributed centrally along the Cam River area, at Hoang Dieu port cluster, Chua Ve port, Dinh Vu port… In 5 In recent years, the city has concentrated its resources, has made breakthrough development steps in the direction of synchronous and modern, well performed its role as an important traffic hub and main gate to the sea of the northern provinces. Many traffic works that play the role of linking regions and areas have been completed such as the Hanoi – Hai Phong highway, the Hai Phong – Ha Long highway; Tan Vu – Lach Huyen road and car bridge; National Highway 10 renovation and upgrading project. At the same time, Hai Phong and Quang Ninh are also coordinating to implement the Ben Rung bridge and Lai Xuan bridge connecting the two localities, as well as rushing to complete the coastal road, preparing to start the expansion of Cat Bi international airport, continuing to invest in the construction of terminal T2…

However, the city’s transport infrastructure and logistics service system also have many limitations such as the logistics infrastructure system does not have many large-scale service zones; transportation costs are still high; the system of railways and local waterways has not yet been connected, well supporting road traffic…

Therefore, at the forum, the leaders of the city as well as the localities on the eastern highway axis affirmed and highly agreed on the requirements and tasks of connection between localities, especially in infrastructure investment. transport layer, towards multimodal transport, thereby creating a strategic breakthrough. The cooperation between localities in logistics services, seaports, inland ports and border gates will help each locality effectively exploit its outstanding advantages. In which, Hai Phong city proposes to strengthen forms and activities of logistics trade promotion; cooperation in developing high-quality human resources in the field of logistics; promoting linkages between logistics enterprises of 4 localities to form and develop supply chains, ensuring the provision of package logistics services at all stages; encouraging and supporting, especially building a database system of businesses, units and organizations in the logistics service supply chain in 4 localities, thereby creating high added logistics value./. 

The project on economic connection of the Eastern highway axis signed between 4 provinces and cities has 8 main linking contents. That is trade and investment promotion; traffic and logistics; production supply chain development; tourism development; in improving the business environment; in training and supplying human resources; environmental protection, sustainable development; in agriculture, agricultural product processing and high-tech agricultural application.