Hanoi targets to attract around US$400 million in foreign direct investment (FDI) into industrial parks and production zones in the city in 2023, representing an increase of 20% against this year.

Vice Chairman of the Hanoi People's Committee Nguyen Manh Quyen at the conference. Photos: The Hanoi Times

Hanoi Export Processing and Industrial Zones Authority (HIZA) Director Le Quang Long gave the information at an investment promotion conference in the city's industrial and production zones held on Dec. 28.

Other objectives include a 10% increase in industrial company revenues and a 13% increase in export growth year-on-year.

Hanoi is set to complete the preparation process for the construction of two to three new industrial parks and map out a complete development plan for a network of industrial parks in the city during the 2021-2030 period, with a vision for 2050.

At the conference, Vice Chairman of the Hanoi People’s Committee Nguyen Manh Quyen said that Hanoi’s economy has achieved strong results by completing all 22 socio-economic objectives set for 2022.

Among the key objectives were a GRDP growth of 8.89% - the city’s highest economic growth in the past 10 years, and state budget revenue expansion of 6.8%, exceeding  the year’s estimate.

“Local businesses have contributed a major part to such positive results,” Quyen said.

For next year, Quyen expected Hanoi to continue speeding up the decentralization of powers among state agencies, focusing on the simplification of administrative procedures and greater support for businesses.

“The authorities are determined to continue the administrative reform and address concerns of the businesses, shortening at least 50% of the processing time for procedures related to land, investment and construction management,” he said.

In 2022, HIZA attracted $360 million in investment capital into industrial parks, up 20% from the previous year, including 10 new projects worth $35 million, while investors injected an additional 324 million into 18 ongoing projects.

Among investors with large projects in the city included Meiko Vietnam Electronics with additional capital of $150 million, Shunyun Hanoi Vietnam ($90.5 million), Nidec Sankyo ($32.5 million), TMC Vietnam Medical Equipment ($16.7 million); and HTMP ($6.7 million).

Hanoi currently has 10 industrial parks covering a total area of 1,300 hectares, nine of which have been put into operation with an occupancy rate of nearly 100% while the remaining one is the Hanoi South Supporting Industrial Park  which is  under construction. Companies in 10 industrial parks in Hanoi generated revenue of $8.1 billion in 2022, up 4.1% year on year.

HIZA reported industrial parks in the city is home to 711 valid projects, including 307 from foreign investors with registered capital of $6.3 billion, and 404 from domestic sources worth VND19 trillion ($803.5 million), creating jobs for nearly 166,000 locals.

For the 2021-2030 period, Hanoi sets the goal of having a total of 24 industrial parks of 5,831 hectares.

Enterprises in 10 industrial parks in Hanoi generated revenue of $8.1 billion in 2022, up 4.1% year-on-year. Their combined export turnover was estimated at $5.1 billion, up 4.3%, while they imported goods worth $4.3 billion, up 4.7%.