Vietnam's Northern Port City Aims to Attract Over USD 6.4 Billion for Urban and Infrastructure Development

In a bold move to accelerate urban and socio-economic development, the port city of Hải Phòng has unveiled an ambitious plan to mobilize over USD 6.4 billion in capital by 2040, with a significant focus on attracting socialized capital.

This strategic initiative, outlined in a recent resolution approved by the 15th session of the 16th term of the Hải Phòng People's Council, underscores the city's commitment to transforming itself into a modern, vibrant, and economically thriving metropolis.

Tapping into Socialized Capital for Sustainable Growth

At the forefront of Hải Phòng's capital mobilization strategy lies the issuance of local government bonds. In this initial phase, the city plans to issue bonds worth over USD 15 million, with each bond valued at USD 400 and a maturity period of five years.

The interest rate for this tranche will be determined by the Hải Phòng People's Committee based on the Ministry of Finance's framework and prevailing market conditions.

Proceeds from the bond issuance will be meticulously channeled towards financing critical urban development projects and socio-economic initiatives across Hải Phòng.

This targeted approach aligns with the city's vision of fostering sustainable and inclusive growth, ensuring that the benefits of development reach all segments of society.

A History of Prudent Financial Management

Hải Phòng's decision to leverage socialized capital is not without precedent. In 2021, the city successfully issued another tranche of local government bonds valued at over USD 108 million, demonstrating its proven track record of prudent financial management and adherence to fiscal regulations.

The Ministry of Finance has played a crucial role in guiding Hải Phòng's bond issuance process, emphasizing the need to comply with the Public Debt Management Law, the State Budget Law, and local budget management practices.

This oversight ensures that the city's debt obligations remain within sustainable limits, safeguarding its long-term financial stability.

Capitalizing on Strong Financial Performance

Hải Phòng's robust financial position provides a solid foundation for its ambitious capital mobilization strategy. In 2024, the city projects total budget revenue to exceed USD 4.2 billion, with local budget revenue alone estimated at over USD 1.58 billion.

Anticipated budget expenditures are set at USD 1.5 billion, including USD 41 million allocated for debt repayment.

A Vision for a Transformed Hải Phòng

Hải Phòng's unwavering commitment to attracting socialized capital is a testament to its unwavering determination to transform itself into a model coastal city for sustainable and inclusive development.

By leveraging diverse funding sources and prioritizing infrastructure development, the city aims to enhance its economic competitiveness, improve the quality of life for its citizens, and establish itself as a regional hub for commerce and innovation.

As Hải Phòng embarks on this transformative journey, its ability to effectively utilize socialized capital will play a pivotal role in shaping its future trajectory.

By striking a balance between economic growth and social progress, the city has the potential to emerge as a beacon of prosperity and well-being in Vietnam's dynamic landscape.