Hanoi plans to build more industrial parks to attract foreign investment. Simultaneously, the city will prioritize site clearance and expedite the development of a comprehensive and modern infrastructure system.

Overview of the meeting. Photo: Hoai Nam/The Hanoi Times

Deputy Chairman of the Hanoi People's Committee Nguyen Manh Quyen revealed the plan today [June 8] at a meeting with representatives of the Ministry of Planning and Investment to discuss solutions to further attract foreign direct investment (FDI) into the capital.

Nguyen Ngoc Tu, Deputy Director of the Hanoi Department of Planning and Investment, revealed that the city had seen a significant increase in FDI in the first four months of 2023, reaching $1.82 billion, a remarkable 260% increase compared to the same period last year.

Numerous projects in sectors such as healthcare, education, electricity, processing, and manufacturing have either received new grants or witnessed an increase in capital, with investments of $1 million or more each.

"These endeavors have been instrumental in accelerating the capital's economic recovery," he said.

Despite its success in attracting FDI, Tu said that the city still faces several challenges, including lengthy investment preparation and project implementation procedures, a lack of synchronized technical infrastructure, limited land availability, and comparatively high land rents, 1.5 to 2 times higher than in neighboring localities. Additionally, there are issues stemming from overlapping and inconsistent regulations between the Law on Investment and specialized laws.

Le Quang Long, Chairman of the Board of the Hanoi Export Processing and Industrial Zones Authority, expressed concern about the current state of Hanoi's industrial parks. While Hanoi currently has 10 industrial parks attracting investment from more than 20 countries and territories, the city can only attract capital to expand existing investment projects due to the shortage of available land in its industrial zones.

Nguyen Anh Duong, Director of the Hanoi Promotion Agency, also pointed out some shortcomings in the promotion efforts, which are not catchy and only provide some essential project information, which fails to attract the interest of potential investors.

Production activities at Vietnam Stanley Electric Company in Tu Liem Small and Medium Industrial Cluster, Hanoi. Photo: Hoai Nam/The Hanoi Times

"In addition, information technology in these promotion activities has not been fully optimized, resulting in unattractive online promotion activities," Duong said.

Duong called on the Ministry of Planning and Investment to encourage FDI enterprises to invest in Hanoi to provide specific guidance on industries and investment targets not explicitly listed in the Schedule of Specific Commitments in Services after Vietnam's WTO accession. This would ensure that investment licenses are issued by the law.

During the meeting, Do Nhat Hoang, Director of the Foreign Investment Agency under the Ministry of Planning and Investment, discussed mechanisms to strengthen coordination and improve the efficiency of State management in investment promotion and attraction, particularly in data information and statistical reporting in the future.

Deputy Chairman of the Hanoi People's Committee Nguyen Manh Quyen emphasized that Hanoi intends to build more industrial parks to attract foreign investment. The city will prioritize site clearance and speed up the development of a comprehensive and modern infrastructure system.

Moreover, relevant agencies will be instructed to improve the quality of investment promotion activities. Hanoi will conduct thorough audits to ensure that investors fully comply with the commitments made in their investment licenses, he said.

Quyen also asked the Ministry of Planning and Investment to strengthen information sharing and continue to provide support, working closely with Hanoi to improve the effectiveness of attracting foreign investment to the capital.

To date, Hanoi has accumulated about $69.844 billion in FDI, ranking second in the country. The sectors that have attracted the largest capital inflows include real estate (63%), trade services (9%), construction (5%), and science and technology (5%).