31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Hanoinews
Hanoi remains favorite destination for FDI amid Covid-19
Ngoc Thuy 06:42, 2021/01/04
The city will accelerate the establishment of an e-government model to create more convenience for the business community in realizing administrative procedures.

Hanoi targets to attract US$30-40 billion in FDI in the 2021-25 period, in which the city is expected to disburse US$20-30 billion, according to the Hanoi Promotion Agency (HPI).

 Secretary of the Hanoi Party Committee Vuong Dinh Hue at the "Hanoi 2020 - Investment & Development Cooperation". Photo: Pham Hung. 

The city expects the rate of enterprises using modern technologies and corporate governance model to increase by 50% against  2018, along with an increase of localization rate to over 30% by 2025.

While setting a goal of attracting high amount of FDI capital, HPA Director Nguyen Gia Phuong said the city would stay selective in attracting the foreign investment capital.

“Hanoi aims to attract high quality FDI from South Korea, Singapore, Taiwan, the US, Europe, Australia and New Zealand in the coming time,” he noted.

In the meantime, the city is stepping up its efforts in preparing for the incoming wave of investment capital, including a plan to develop supporting industries by 2025 and building new industrial parks.

The city targets to accelerate the establishment of an e-government model to create more convenience for the business community in realizing administrative procedures.

Impressive results

According to the HPI, while the Covid-19 pandemic has led to a sharp decline in the amount of investment capital globally, Hanoi remained a favorite investment destination in 2020,

“Hanoi’s authorities have been actively organizing trade and investment promotion conferences, as well as taking drastic measures in improving the city’s business environment,” stated the agency.

In the 2016-20 period, Hanoi was the host of four investment attraction and development cooperation conferences that resulted in 264 investment projects with a combined registered capital of VND854 trillion (US$36.58 billion).

At the most recent conference in June 2020, foreign and domestic investors committed a total of VND405.57 trillion (US$17.6 billion) in investment capital in 229 projects, an increase of VND270.45 trillion (US$11.58 billion) against last year’s event.

A report from the municipal Department of Planning and Investment revealed during the 2016-19 period, foreign-invested companies paid US$3.41 billion in taxes and created jobs for 310,370 locals, or 11% of the total workforce.

Hanoi was the top destination in Vietnam for FDI firms in two consecutive years of 2018-19, in which the FDI commitments reached US$8.7 billion in 2019.

During this period, 99,503 new enterprises were established with with registered capital of VND1,225 trillion (US$52.48 billion), up 24% in quantity and 118% in value against the last five-year period.

In the first 11 months of 2020, Hanoi was home to 24,600 new enterprises with registered capital of VND303.3 trillion (US$13 billion).

“Hanoi already possesses many key factors that are attractive to higher quality FDI. The current environment of global supply chain changes  as a result of the Covid-19 pandemic  providing a good opportunity for the city to further prioritize FDI inflows in line with its development strategy,” said Kyle Kelhofer, IFC Regional Manager for Vietnam, Cambodia, and Lao.

Takeo Nakajima, chief representative of the Japan External Trade Organization (JETRO) in Hanoi cited a survey of the agency that showed 41% of Japanese firms are planning to expand the operation in Vietnam in the next three years.

Hanoi attracted nearly US$2 billion in FDI in 2020, including US$662 million from 464 new projects and US$1.24 billion pumped into 132 existing projects.

TAG: Vietnam FDI covid-19 coronavirus nCoV pandemic investment destination disbursement global shift
Other news
16:02, 2022/02/05
Hanoi People’s Council opens 7th session
The municipal People’s Council would spend most of the time discussing matters related to socio-economic performance during the first six months, and key tasks for the remainder of the year.
17:56, 2022/56/01
Hanoi eyes cooperation with UK to develop clean energy
Vietnam and the UK have achieved impressive cooperation results in the fields of politics, diplomacy, economy, culture, and tourism in recent years.
09:33, 2022/33/01
Folding bikes allowed on Hanoi's sky train
Folding bikes are compact and light and do not take up too much space.
20:41, 2022/41/30
Hanoi’s economy posts solid growth in first half of 2022
Hanoi's GRDP growth in the first half of this year shows the economic recovery with the development of many key industries.
17:21, 2022/21/28
Success of US$3.7-billion ring road project is Hanoi’s pride: City Party chief
The project with a five-year construction period would be seen as gauge of the city's leadership and credibility.
14:56, 2022/56/27
Hanoi to pilot real-time reporting system in Q3
The goal is to ensure a consistent reporting system from the grassroots to city-level agencies, which helps save time and cost for all parties involved.