Hanoi opens doors for investments

In 2019, Hanoi continued to focus on improving the business environment and maintained its status as Vietnam’s top destination for foreign investors.

Chairman of Hanoi People's Committee Nguyen Duc Chung (R) hands over cooperation agreement to investors at Vietnam - South Korea business forum in November 2019. Photo: Thong Nhat.

As of December 22, Hanoi led nationwide in terms of foreign direct investment (FDI), attracting the largest share of capital commitments with US$8.45 billion, accounting for 22.2% of total investment in the period.

Meanwhile, the disbursed amount was reported at US$6.5 billion, or 74% of the total registered capital, the highest disbursement rate so far.

The majority of investment capital in Hanoi is under the form of capital contribution and share acquisition with US$6.33 billion. Investors committed to pour US$1.39 billion into 871 new projects and an additional US$738 million into 180 existing projects. 

As of present, Hanoi attracted a total of US$42.5 billion in FDI in 5,955 ongoing projects, while US$26.5 billion, or 62.3% of the total, has been disbursed.

Major investment projects in Hanoi in 2019 included a US$3.85-billion beer project from Beerco Limited (Hong Kong); an injection of US$200 million for a plant to manufacture electronic parts from Meiko Vietnam company (Hong Kong); and a US$420-million racetrack complex from South Korea’s Charmvit Group.

Among fields and sectors that have received FDI, real estate attracted the lion share of investment capital, followed by manufacturing and processing, IT, communication and construction, among others.

Hanoi has been giving priority to attracting credible investors from major economies such as South Korea, Japan or EU, while encouraging investments in projects that are environmentally-friendly, open for technology transfer and use cutting-edge technologies.

Such achievements in FDI attraction were thanks to the local authority’s efforts to improve the business environment, upgrade infrastructure and addresse businesses' concerns.

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 in 2018, up four places compared to the previous year’s report and 42 places from 2012.

Hanoi also facilitated reform in various administrative fields, including planning, investment, land, construction, business registration, startups, while providing incentives for investors in terms of taxation, credit access, among others.

Nguyen Thi Nga, chairwoman of BRG Group which along with Japan’s Sumitomo Corporation has committed US$4.14 billion for smart city project in Hanoi, said the local authority has been supportive of investors in executing the project.

In 2020, Hanoi continues to attract foreign investments in urban infrastructure development, including transportation, smart cities, water provision, as well as high added value services such as IT, biotech, tourism, trade, education, and logistics, among others.

These priority fields are expected to lay a strong foundation for Hanoi to maintain its dynamic and strong growth in the future.