Hanoi Continues to Be Destination for Foreign Investors

 

After six months of implementation, these measures have shown initial efficiency, sustaining economic growth and maintaining the confidence of domestic and foreign enterprises in the city’s investment environment.

 

As reported by Hanoi Department of Planning and Investment, in the first six months of 2014, foreign direct investment (FDI) into the city was estimated at US$560 million, up 13.7 percent compared to the same period of 2013, primarily due to increased capital. In particular, the Ho Tay project increased US$234 million; B.Braun company (Germany) US$30 million; Vietnam France Hospital US$40 million; Lotte Hotel Group US$54 million; and Yamaha Electronic US$10.5 million. The implemented FDI also experienced good growth, reaching US$405 million, up 6.5 percent compared to the same period in 2013.

 

The city’s export was estimated to increase by 14.4 percent over the same period in 2013, the non-state sector increased by over 20 percent, and remarkably, exports in the second quarter rose 18.8 percent, nearly double the growth rate in the first quarter (9.8 percent).

 

Social investment of the city in the first half of 2014 reached VND871,180 billion, lower than planned but still an increase of 10.2 percent compared to the same period last year (11.4 percent). Investment in construction showed positive changes with projects invested by Official Development Assistance (ODA) of VND1,435.585 billion, equal 464.6 percent of the plan, in which disbursed ODA of key projects increased 6 times to reach VND1,394.290 billion, equal 633.6 percent of the plan. Currently, the city is focusing on reviewing progress of key projects and ODA projects, supervising site clearance work, mobilising prioritised capital investment for major projects; completing the project of releasing VND5 trillion bonds for capital development, aiming to complete 22 projects by 2015.

 

In order to create the best conditions for foreign businesses to invest and do business, the city authorities have implemented the “Improving FDI Efficiency Project” for the 2011 - 2015 period. Accordingly, Hanoi has simplified documents and shortened administrative procedures for businesses and investors, building investment promotion programmes and a portfolio of projects in need of FDI period 2013 - 2015; researching and designing action plans to attract Japanese FDI in 2015.

 

In a recent meeting, Chairman of Hanoi People’s Committee Nguyen The Thao emphasised that it’s important to help businesses and investors overcome difficulties and obstacles. Accordingly, the city should enhance market support, remove difficulties, promote business production, improve the investment environment, and strengthen provincial competitiveness index (PCI); it would develop and implement the master plan of Hanoi industry development; complete the planning of developing industrial complexes in the city and preferential investment policies in those complexes; consider reducing land rent to help enterprises lower costs; encourage companies to make technological investment, innovate production lines to strengthen products’ competitiveness, creating momentum for production and business. Thao also emphasised the necessity of continuing to support the market, solving inventory; removing difficulties in the city’s real estate market, promoting land auction to raise capital for development.

 

Earlier, in many meetings with the city leaders, representatives of foreign enterprises operating in Hanoi had confirmed that the measures implemented by the city recently to maintain a stable investment environment had been a great help, making companies confident in production and business. With investors’ strong confidence, Hanoi will absolutely continue to be one of the best destinations for foreign capital flows.