Economic development associated with ensuring social welfare in the Port City
In recent years, Hai Phong has maintained high economic growth while paying attention to social welfare and improving the quality of life for its residents.
A solid economic foundation
For more than a decade, Hai Phong has maintained double-digit GRDP growth and is the only locality in the country to sustain this growth continuously. In 2025, the city’s GRDP increased by 11.81%, ranking second nationwide and first among centrally-run cities, marking 11 consecutive years of double-digit growth. The city’s GRDP was estimated at VND 734.42 trillion (around USD 29.4 billion).
Notably, Hai Phong’s growth is driven mainly by manufacturing and digital transformation rather than natural resource exploitation. The manufacturing and processing sector accounts for nearly 44% of GRDP, while high-tech products make up about 66% of industrial output value. Labor productivity in the city is among the highest in the country.
Speaking at a working session with the city, General Secretary To Lam noted that Hai Phong has achieved many accomplishments that few localities could attain under similar circumstances and institutional conditions. Many of the city’s models and experiences should be summarized and replicated nationwide. These results stem from the city’s Party organization and authorities promoting a spirit of “daring to think and daring to do,” while unlocking the potential, determination, and aspiration for development among Hai Phong people.
At the same time, administrative reform and improvements to the investment enviroments have been strongly promoted. In 2024, Hai Phong ranked first nationwide in the Provincial Competitiveness Index (PCI). Its Public Administration Reform Index and Public Satisfaction Index have also remained among the top nationwide for many years. This demonstrates the increasingly proactive and facilitating role of the local government.
Economic growth only truly matters when its outcomes translate into better living standards for people. Hai Phong has consistently pursued the policy of “prioritizing social welfare and public benefits ahead of economic development.”Each year, the city allocates budget resources to fully cover tuition fees for students at all levels, provides generous rewards for students and teachers achieving national and international accomplishments, supports tens of thousands of people participating in health and social insurance, and has eradicated poverty under the national standard ahead of schedule.
As a result, economic growth in Hai Phong has always gone hand in hand with social progress and equity. The city’s budget is not only invested in infrastructure but also prioritized for education, healthcare, and social welfare, clearly reflecting a people-centered development orientation.
At the same time, the city is accelerating the development of digital government, applying information technology in administrative procedures and connecting with the National Public Service Portal to shorten processing time and reduce costs for businesses and citizens. Currently, 100% of administrative dossiers are received and processed through the electronic system.
Mr. Pham Quang Dung, Director of a logistics company in Dong Hai Ward, commented: “The investment environment in Hai Phong is becoming increasingly open and transparent. Faster administrative procedures help businesses save time and costs. The government accompanies businesses rather than simply managing them.”
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Balanced development
Alongside its positive achievements, Hai Phong’s development model also faces several challenges, including the still-large share of foreign direct investment, which requires stronger capacity among domestic enterprises; environmental pressures resulting from rapid industrialization; and the risk of development disparities among different areas.
Project No. 04 on building a model of socialism associated with the development of socialist-oriented people in Hai Phong for the period 2026–2030 and beyond clearly states that economic development must go hand in hand with the cultivation of socialist citizens—people who possess knowledge, ethics, social responsibility, and a strong sense of ownership. This requires continued innovation in education and training, the promotion of science and technology, and the creation of a healthy cultural environment within both businesses and communities.
From sustained double-digit growth and strong institutional reforms to prioritizing social welfare and promoting grassroots democracy, Hai Phong is gradually shaping a development model that harmonizes the market economy with socialist orientation. The city’s strengths are reflected not only in the scale of its GRDP or budget revenues but also in its people-centered development mindset, placing citizens at the heart of progress and ensuring they benefit from its outcomes.
As Vietnam enters a new stage of development, the practical experiences of the port city may serve as an important foundation for further refining and expanding the socialist-oriented market economy model. Hai Phong is therefore not only a bright spot of economic growth but also a testing ground for development approaches that are sustainable, humane, and deeply rooted in Vietnamese identity.
Tam Phuc