To further attract investment in the manufacturing and processing sectors, Hanoi plans to establish 5 to 10 industrial clusters by 2023.

Electronics production at Katolec Vietnam, Quang Minh Industrial Park, Hanoi. Photo: Pham Hung

The objectives were mentioned in the Plan, No. 97 of the City, on the Management and Investment of Industrial Clusters in 2023.

This year, the city's focus will be on the improvement of the technical infrastructure of the industrial clusters operating in the area. This includes improving internal transportation, sidewalks, trees, water supply and drainage, sewage treatment, waste management, electricity, public lighting, internal communication, operators, protective fencing and other works serving industrial cluster operation.

All of these improvements must meet the requirements set forth in Decree No. 68/2017/ND-CP, issued by the Government, regarding managing and developing industrial clusters.

In addition, the city will complete the necessary procedures for the start of construction of technical infrastructure for 10-20 industrial clusters that are part of the 2018-2020 plan.

It is imperative that 100% of new and existing industrial clusters, including craft village industrial clusters, have sewage treatment plants meeting relevant national standards or technical regulations.

The Municipal People's Committee has emphasized the importance of effective management of industrial clusters by district and township people's committees, especially in the supervision and handling of cases of illegal land use and construction in accordance with approved regulations and plans.

In addition, to ensure the timely and proper completion of technical infrastructure construction in industrial clusters according to approved plans and schedules, the committee is responsible for leading and cooperating with relevant departments and agencies and overseeing the implementation of solutions.

New industrial clusters will have to update and revise their construction plans, master plans and land use plans to ensure their smooth implementation, the committee said.

District and township People's Committees are required to expedite the approval of 1/500 detailed plans and land clearance to meet the set timetable for starting industrial clusters in their areas. They must also develop plans for the completion of infrastructure within and outside the fences of industrial clusters, with the use of district budgets or requests for investment from the municipal people's committee for city-level construction projects.

They must also evaluate the progress of ongoing clusters and report to the City People's Committee for appropriate measures under current regulations.

The Hanoi Export Processing and Industrial Zones Authority (HIZA), the city's operator of industrial parks in the city, has attracted $360 million in investment capital to the city's industrial parks in 2022, an increase of 20% from the previous year. This includes 10 new projects worth $35m and another $324m in 18 ongoing projects. Among the major investors are Meiko Vietnam Electronics, Shunyun Hanoi Vietnam, Nidec Sankyo, TMC Vietnam Medical Equipment, and HTMP. Hanoi has 10 industrial parks covering 1,300 hectares. Nine are operational and almost fully occupied, while the Hanoi South Supporting Industrial Park is under construction. These parks generated $8.1 billion in revenue in 2022, increasing 4.1% compared to the previous year, with combined exports estimated at $5.1 billion and imports valued at $4.3 billion.

Hanoi aims to attract $400 million in foreign direct investment to its industrial parks and production zones in 2023, an increase of 20 per cent compared to the previous year.

HIZA reported that there are 711 valid projects in the industrial parks, of which 307 are from foreign investors with registered capital of $6.3 billion, and 404 from domestic sources. The projects are worth VND19 trillion ($803.5 million) and provide jobs for nearly 166,000 people.