Hanoi lured nearly US$1.7 billion in foreign direct investment in 2022, up 10.3% year-on-year.

Hanoi's Thang Long Industrial Park is home to many foreign investors. Photo: Thang Long Industrial Park Co.

Last year, the Hanoi Department of Planning and Investment granted investment licenses for 365 new projects, with a total registered capital of $233 million.

In addition, more than 200 projects were applied to raise their investment capital, with a total additional capital of US$834 million. Foreign investment through capital contributions and share purchases reached US$625 million in 2022.

In the same period, new businesses in Hanoi reached 29,600, an increase of 23% against 2021, with a total registered capital of VND328.4 trillion ($13.9 billion), down 5%.

As many as 3,600 enterprises announced their dissolution, and 16,400 firms registered to suspend operation, up 16% and 38%, respectively.  In addition, 9,800 businesses restored their operation, up 1.5%.

During the 2021-2025 period, Hanoi sets the target of drawing $30-40 billion of FDI and disbursing $20-30 billion.

At a relevant meeting last year, Vice Chairman of the Hanoi People’s Committee Nguyen Manh Quyen said: “The city prioritizes FDI projects focusing on sustainable development, creating high-added value and competitive edge, especially in fields of urban development, supporting industries, tourism, finance-banking, human resource development or hi-tech farming.”

Hanoi is accelerating the construction of new industrial parks and clusters, referring to the program of setting up two to five industrial parks in the city during the 2021-2025 period.

The city is also focusing on simplifying administrative procedures and creating new incentive policies in terms of taxes and land to attract FDI, Quyen said.