Hanoi remains among the top destination for FDI in Vietnam, given its competitive advantages in sustainable development, high-quality workforce, and diversification of economic structure.
|Production of home appliances at Sunhouse Group's factory. File photo|
According to the municipal Department of Statistics, Hanoi attracted nearly US$170 million in FDI in September, resulting in a total of $1 billion during the January-September period, or an increase of 18% year on year.
“This is an encouraging result, helping cement Hanoi’s role among the top 10 localities in FDI attraction in Vietnam,” said Deputy Director of the Hanoi Department of Planning and Investment Nguyen Ngoc Tu.
Upon breaking down, the city recorded 262 new projects worth $183 million, up 6.5% in the number of projects and 12.5% in value year on year; 141 existing projects were pumped additional funds of $336 million, up 51.6% in project number but down 31.8% in value; foreign investors contributed $500 million to purchase stake at 286 projects, up 83.8%.
Across the country, Hanoi, along with Ho Chi Minh City, is where most of the new projects are concentrated, which is attributed to its adequate infrastructure conditions, according to the Foreign Investment Agency (FIA).
During the nine months, Ho Chi Minh City took the lead in the number of new projects, accounting for 41.8% of the total, while Hanoi was at the top spot in capital injection with additional funds of 18.4%.
Large-scale FDI projects in Hanoi come mainly from Asia, such as Japan, South Korea, and Singapore; meanwhile, those from Europe and the US account for less than 10% of total registered capital and are focused on export and import, distribution, IT, telecommunications, manufacturing, and processing.
“FDI in Hanoi has been upward in recent years, especially as Vietnam becomes increasingly integrated into the global economy,” said Tu.
In addition, Hanoi aims to promote investment activities through both online and offline platforms and address the concerns of domestic and foreign investors.
Hanoi aims to attract between 30 billion and 40 billion dollars in FDI during the 2021-2025 period and disburse an amount of FDI between 20 and 30 billion dollars. The focus would be on high-quality projects with high added value and competitiveness, contributing to the city's vision of sustainable development.
Pulling factor for foreign investors
A survey by the National Economics University revealed that 56% of enterprises are satisfied with business conditions in Hanoi, especially with the infrastructure system and business support policies.
General Director of Aeon Mall Vietnam Nakagawa Tetsuyuki noted favorable investment procedures in Vietnam in general, and Hanoi, in particular, has been a key factor for the Japanese retail group to commit to 16 investment projects in Vietnam from now on until 2025, including 3-4 in Hanoi.
Amid fierce competition for FDI among localities in Vietnam and the ongoing shift in global investment capital, for the remainder of the year, Hanoi would accelerate investment promotion in major markets, such as Japan, South Korea, Singapore, Taiwan (China), the US and Europe, stated the municipal Department of Planning and Investment.
In line with such efforts, the local authorities will further invest in technical infrastructure, train a high-quality workforce, and strengthen the linkage between the domestic and foreign-invested sectors, creating new driving forces for growth based on digital platforms, administrative reform, and simplification.
In this regard, Hanoi would promote IT application in the administrative process, with an immediate focus on business registration, investment procedures, insurance, tax, and land management, promoting transparency in planning and land use plans for better public access.
For the 2021-2025 period, Hanoi plans to allocate 1,200 hectares for the construction of five new industrial parks, which are scheduled to complete in the 2021-2025 period.
These include the 302.8-hectare Soc Son Industrial Park, located in Minh Tri and Tan Dan communes; Dong Anh Industrial Park (300 hectares) in the communes of Nguyen Khe, Xuan Non, Thuy Lam, Lien Ha, and Dong Anh village; Bac Thuong Tin Industrial Park (112 hectares) in Van Binh, Ninh So, Lien Phuong communes of Thuong Tin District; the expansion of Phu Nghia Industrial Park (389 hectares) in Chuong My District; and Phung Hiep Industrial Park (175 hectares) in Thuong Tin District.
Currently, the city is home to 10 operational industrial parks covering a total area of 1,347 hectares, in which the occupancy rate of nine industrial parks has reached nearly 100%.
Industrial parks in Hanoi employ nearly 165,000 workers, including 1,100 foreign nationals. One hectare of land in Hanoi would attract $5.5 million in investment capital and provide jobs for 160 workers.