Amid signs of economic recovery and continued growth, the number of businesses resuming operations and new registrations in Hanoi is on the rise.

Production of precision mechanics at PMTT Group in Chuong My Industrial Park, Hanoi. Photo: Pham Hung/The Hanoi Times

Data revealed by the Hanoi People's Committee that in July alone, the city issued certificates for 3,007 newly established businesses, representing a 20% increase year-on-year. The registered capital reached approximately $1.01 billion, up 4%. Additionally, 997 businesses resumed operations, marking a substantial increase of 56%.

For the first seven months of 2024, Hanoi granted certificates to nearly 18,000 new businesses with a registered capital of approximately $6.9 billion, reflecting a 2% decrease in the number of businesses and a 9% decline in registered capital compared to the same period last year.

However, 6,600 businesses resumed operations, which is a 14% increase.

In the early months of 2024, industrial production in the city continued to show a positive recovery. The Industrial Production Index (IIP) for July is estimated to have increased by 2.3% compared to the previous month and by 6.2% compared to July 2023.

Overall, for the first seven months, the IIP increased by 5.2% year-on-year. In this regard, most processing and manufacturing sectors saw significant increases compared to the same period, including machinery and equipment production (14.9%); paper and paper product manufacturing (13.8%); and production of furniture (11%).

Alongside boosting production, Hanoi is enhancing trade promotion and streamlining administrative procedures to attract investment. As a result, the number of enterprises in the foreign direct investment (FDI) sector remains relatively stable, noted the local authorities.

In the first seven months of 2024, the city attracted $1.3 billion in FDI, a 65% increase compared to the same period in 2023. This includes 143 newly registered projects with a total capital of $1.1 billion, 102 capital increase rounds totaling $138 million, and 118 instances of foreign investors contributing capital or purchasing shares worth $77 million.