Dec 04, 2018 / 22:22

Hanoi attracts largest FDI in Vietnam after 30 years of renovation

Hanoi has attracted a total of US$13.25 billion in foreign direct investment (FDI) in the 2016 – 2018 period, 2.12 times that in the 2011 – 2015 period and up 48.6% from the 1986 – 2015 period.

For the first time after 30 years of the renewal process and global integration, Hanoi has attracted the largest amount of FDI at US$6.5 billion in the January – November period nationwide, according to Nguyen Doan Toan, vice chairman of the Hanoi People’s Committee. 
 
Illustrative photo.
Illustrative photo.
This resulted in a total of US$13.25 billion in the 2016 – 2018 period, 2.12 times that of the 2011 – 2015 period and up 48.6% against that of the 1986 – 2015 period, Toan said at a meeting of the Hanoi People’s Council on December 4. 

Overall, the capital city has fulfilled and exceeded all the 20 socio-economic targets, in which budget revenue is estimated to reach VND238.8 trillion (US$10.32 billion), equivalent to 100.2% of the year’s estimate, and up 12.6% year-on-year, added Toan. 

In 2018, the city’s budget expenditure is projected to stand at VND87.34 trillion (US$3.77 billion), equivalent to 91.7% of the year’s estimate, translating to a budget surplus of VND151.46 billion (US$6.54 billion). 

Of the total, the city's capital expenditure for development investment is VND38.08 trillion (US$1.64 billion), equivalent to 90.4% of the estimate, the recurrent spending is VND43.28 trillion (US$1.87 billion) or 98.2% of the estimate. 

The city’s recurrent spending ratio has been on the decline over the last three years, reaching 50.8% in 2018 from 53.5% in 2017 and 55.5% in 2016, which is a positive result, Toan continued. 

The city's exports in the 11 months through November climbed 21.6% year-on-year to US$14.2 billion, significantly higher than the growth rate of imports of 8.2%. In the three-year period, Hanoi’s exports grew by 10.76%, higher than the 5.5% growth of the 2011 – 2015 period.  

As of the end of 2018, total mobilized capital from credit institutions in Hanoi is projected to reach VND3,090 trillion (US$133.47 billion), up 17.43% year-on-year, while total outstanding loans climb 16.92% year-on-year to VND1,870 trillion (US$80.77 billion). 

The average consumer price index (CPI) is estimated to grow by 4.15 – 4.30% in 2018, mainly due to hikes in prices of transportation, housing and construction materials, medicine and healthcare services in July. 

Hanoi's gross regional domestic product (GRDP) in 2018 is set to grow by 7.37%, up from the 7.3% growth recorded last year, to reach VND904.5 trillion (US$39.13 billion).

Meanwhile, Hanoi welcomed a total of 5.74 million foreign visitors year to date, up 16% year-on-year, exceeding the target of 5.7 million set for 2020.