Hanoi is the highlight of globally recognized Vietnam’s success story in FDI attraction, according to Deputy Prime Minister Vuong Dinh Hue.
A corner of Hanoi. Photo: Zing.vn
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FDI projects have been present in 62/63 provinces and cities and 19/21 industries of Vietnam, contributing 20% of the GDP in 2017 and 14% of state budget revenue. Moreover, the share of FDI in total social investment reached 23.7% in 2017 and the sector made up 70% of exports, creating 4 million direct employments and another 56 million indirect jobs, Hue added.
The next ten year- period would pose more challenges for Vietnam in general and Hanoi in particular in attracting FDI, requiring a new mindset in FDI attraction, Hue stated.
The Deputy PM said Hanoi should consider investors as partner for mutual benefit, in which the city must ensure a favorable environment for investors to commit long-term business in the city.
At the meeting, Vice Chairman of the Hanoi People’s Committee Nguyen Doan Toan informed that Hanoi had 4,500 ongoing foreign invested projects with total registered capital of US$36.6 billion as of December 31, 2018.
In 2018, Hanoi topped nationwide in FDI attraction for the first time in 30 years of economic integration, reaching US$7.5 billion, Toan said, adding that US$18.9 billion has been disbursed, accounting for 52.5% of the total commitments.
Real estate was the most heavily invested sector by foreign investors with 29.53% of total FDI inflow, followed by manufacturing and processing with 20.01% and telecommunication with 11.48%.
Among countries and territories investing in Hanoi, Japan claimed the top spot with US$10.4 billion, followed by Singapore with US$6 billion and South Korea with US$5.48 billion.
According to Toan, FDI is an important source of capital for social investment, accounting for 10 - 15% on average of total investment and contributing to the city's high GRDP growth over the past years (averaging 7.11% annually).
At the same time, it is the FDI sector that has created stronger competition pressure in each sector, motivating domestic enterprises to innovate technologically as well as enhance the economy's competitiveness.
In the 2019 – 2020 period, Hanoi would focus on encouraging FDI investment in urban infrastructure development, high added value services, trade and education.
Hanoi aims to build a government of service which supports businesses in every step, Toan added.
Chairman of the Hanoi People’s Committee Nguyen Duc Chung said Hanoi has been proactive in searching for credible investors with high quality FDI projects.
Hanoi will continue to establish a favorable investment and business environment so that enterprises and investors can successfully carry out their business and production plans, Chung affirmed.
Additionally, the capital will create a radical change in developing the e-government to save time and costs for businesses, focusing on administrative reform and reducing administrative procedures, he added.
