FDI inflow into Hanoi on track to hit US$8 billion in 2019
This would result in total accumulated foreign capital to Hanoi at US$42 billion in 5,300 ongoing projects.
Hanoi’s foreign direct investment (FDI) in 2019 is projected to hit over US$8 billion, thanks to strong investment promotion policies and the local government’s efforts to improve the business environment, according to a report by the Hanoi People’s Committee.
| Illustrative photo |
As of present, Hanoi approved 27 projects using non-budgetary sources with total investment capital of VND17.37 trillion (US$747.44 million) and 47 projects with additional capital of VND18.94 trillion (US$814.95 million).
Among 60 cities and provinces in Vietnam having received FDI in the first ten months this year, Hanoi has remained the top FDI destination with commitments of US$6.85 billion, accounting 23.5% of total committed FDI nationwide in the period.
Ho Chi Minh City came second with US$4.96 billion or 17% of the total investment, followed by Binh Duong, Dong Nai, and Bac Ninh.
| Data: FIA. Graphic: Ngoc Thuy |
In 2019, Hanoi is expected to issue welcome 27,902 newly established enterprises with registered capital of VND510.73 trillion (US$21.97 billion), up 11% in number and 30% in value year-on-year, respectively.
Additionally, the number of enterprises subject to dissolution is estimated at 2,270, up 32% year-on-year, and 8,009 enterprises temporarily ceasing operation, up 28%.
This would result in a total number of operational enterprises in Hanoi at 280,404 and 5,535 enterprises resuming operation, up 59% year-on-year.
Since the beginning of the year, Hanoi has been focusing on supporting enterprises right from the early process of business registration to project implementation, at the same time ensuring a fair and transparent business environment, particularly in land-related issues, stated the report.
The move is in line with the government’s Resolution No.02 providing measures to improve the country’s business environment and national competitiveness in 2019, with vision to 2021.
For the first time since the launch of the provincial competitiveness index (PCI) in 2005, Hanoi was named among the top 10 rankings, claiming the 9th rank out of 63 provinces and cities, up four places compared to the previous year’s report.
Hanoi targets GRDP growth rate of 7.5% in 2019 and 2020, leading to average annual GRDP growth of 7.33% - 7.41% in the 2016 – 2020 period, which is in line with the city’s five-year socio-economic development plan.
