Hanoi Pulls in over US$740Mln FDI So far This Year

Hanoi has received foreign direct investment (FDI) pledges worth more than US$740 million so far this year, including US$500 million from 73 newly-licensed projects and the rest from the capital rise of 19 existing ones.

 

Among the fresh projects, the three biggest are a Korean firm’s West Ho Tay Urban Project worth US$314 million, the US$76-million Panasonic Communications Vietnam and the US$50-million Panasonic Electronic Devices Ltd. Co.

 

The capital rise was mainly carried out by big hi-tech companies such as the Panasonic Electronic Devices Ltd. Co. with US$93 million and Yamaha Vietnam Co with US$43 million.

The FDI projects of the city mostly operate in hi-tech and real estate, particularly deluxe hotels and buildings.

 

The city has recently proposed the Ministry of Planning and Investment to withdraw the investment licenses of 49 idle FDI projects and to help 23 others, which are in a difficult situation.

 

In a bid to lure more foreign investors, Hanoi will further simplify its administrative procedures. Between now and the end of this year, it will establish a working team in charge of foreign investment to implement a "one-stop" policy for the licensing of foreign-invested projects and facilitating the operations of many large projects, including a 65-storey building, a 100-bed hospital and the CDMA-2000 mobile phone service.

 

The city also plans to join hands with the Vietnam Chamber of Commerce & Industry (VCCI) to hold more investment and trade promotion forums on occasion of the Asia Pacific Economic Cooperation (APEC) Summit.

 

Besides, Hanoi is to kick off construction of two more industrial parks namely Phu Dong and Sai Dong A covering around 200ha, aiming to meet the strong development of foreign investment.

 

To date, the city has licensed 708 FDI projects, capitalized at over US$9.93 billion, ranking second after Ho Chi Minh City.

 

In 2006 Hanoi expects to license 100 new FDI projects and allow 65 existing FDI projects to raise capital in order to mobilize US$900 million in total registered FDI capital.

It will give priority to foreign investors to invest in the fields of information technology, electronics, mechanical equipment, high-grade construction materials, fashion and sports clothing, and medicines.

 

It has set a target of attracting US$4-6 billion FDI and US$2.5 billion of official development assistance (ODA) between 2006 and 2010.