With many efforts to improve the investment environment and administrative reform, Hanoi remains an attractive destination for foreign direct investment, with US$1.1 billion of investment capital in the first five months of 2024.

Electronics production at Katolec Vietnam in Quang Minh Industrial Park, Hanoi. Photo: Pham Hung/ The Hanoi Times

The Hanoi Statistics Office reported that, of the total capital, $1 billion came from 92 newly registered projects, $36.8 million from capital increases in another 64 projects, and $57.9 million from capital contributions and share purchases in 86 projects.

In May, the city attracted 19 new projects with a total registered capital of $17.3 million; at the same time, seven projects increased their investment capital by $70.7 million; and there were 19 cases of foreign investors contributing capital and purchasing shares worth $10.6 million.

Nguyen Manh Quyen, Deputy Chairman of the Hanoi People's Committee, said the city has been vigorously implementing administrative reform, pioneering the model of decentralization and power delegation in handling administrative procedures.

Hundreds of procedures have been delegated by the Chairman of the People's Committee to departments, districts and wards, he added. This has saved a lot of time and money and made the investment process less cumbersome. 

The Deputy Chairman stressed that the city also pays great attention to listening to and processing feedback from investors and businesses. The Chairman of the Hanoi People's Committee has held a series of meetings and dialogues to remove difficulties and obstacles in many areas, such as procedures, land policy and taxes.

According to Quyen, in addition to foreign investors, people in Hanoi are gradually becoming more confident about doing business.

In the first five months of 2024, the city issued business licenses to 12,900 new enterprises with a registered capital of VND124.3 trillion ($4.9 billion). This represents a 2% decrease in the number of enterprises and a 3.5% decrease in registered capital compared to the same period last year.

During this period, 5,400 enterprises resumed operations, an increase of 18.5%, while nearly 16,200 registered for temporary suspension, an increase of 29.4%. In addition, 1,700 enterprises were liquidated, an increase of 14.8%.