Attract 80% investment from enterprises At the conference on attracting investment in Hanoi, the Director of the Hanoi Department of Planning and Investment Nguyen Manh Quyen states that the City has determined to reach its socio-economic goals, with the average GRDP growth rate per person from 2016 to 2020 at 8.5 to 9%. The average GRDP per person would be from 6,700 to 6,800 USD. To further complete any breakthroughs on infrastructure development from 2016 to 2020., Hanoi needs to attract from a social investment of 2.5 to 2.6 million billion VND.
In particular, the capital investment consists of approximately 20%, while non-state investment and foreign investment dominate the remaining 80%. In other words, investment of enterprises in- and outside the country is the key for the urban economic development.
The major direction of the city is that the state budget will focus only on infrastructure projects, socio-economic development projects or state projects. For other projects, the city will encourage investment in other forms: public private partnership (PPP), socialization, foreign direct investment (FDI), and official development assistance (ODA) for big projects that receive funding slowly.
Director of th Hanoi Department of Planning & Investment Nguyen Manh Quyen gave a speech at the Conference.
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At two conferences “Hanoi – Investment & Development Cooperation” (2016, 2017), Hanoi has introduced 231 projects, with the total expected investment at 1.81 million billion VND. In particular, the city has granted permits for 71 projects, with the total investment up to 111.3 thousand billion VND. At the two conferences, Hanoi has received the warmest welcome from investors with many new projects suggested besides those the city has already introduced. In addition, during the visit to Japan of the Prime Minister, Hanoi has signed many cooperation deals, in particular the Japanese investment in Hanoi at 5.2 billion USD.
In total, in 2016, Hanoi has attracted 3.11 billion USD of FDI, an increase of 2.93 times compared to that of 2015. Furthermore, 38 PPP projects involve the total expected investment at 153.9 thousand billion VND. Especially, infrastructure development field consists of 36 projects with total investment at 151.8 thousand billion VND. Hanoi has granted permits for 98 domestic projects with the total funding at 68.97 thousand billion VND. In addition, the City has succeeded in attracting investors and enterprises in participating in social programs such as “1 million green tree project,” food safety check, or trimming trees.
Create favorable investment environment
To realize the above goals, Hanoi focuses especially on creating an investment environment that would benefit enterprises and investors. Previously, the City has concentrated on supervising administrative procedures of ministries, departments and agencies. On that foundation, the city has reduced and connected all administrative procedures. As a result, the 2016 Provincial Competitiveness Index (PCI) of Hanoi is among provinces with good administrative management, increasing by 10 levels compared to that of 2015. The high PCI brings Hanoi to rank 14 out of 63 provinces.
The construction of e-government has achieved first-step results: reduction in times and fees for enterprises. In particular, the administrative procedures have been modernized. The one stop shop system with three levels of interconnected online public services has been launched. However, the city still needs to assist enterprises to get access to the following resources: lands, high quality laborers, markets and high quality management training.
Hanoi’s recommendation to the government
At present, investors have registered 25 transport projects and parking lot building in Hanoi with the total investment of 262 billion VND. In 2017, the following projects are expected to be commenced: finalizing ring road 1, 2 and 2.5, Highway No.6: Ba La – Xuan Mai.
Currently, there are numerous investors interested in water supply projects. As such, Hanoi has approved 23 projects with the total investment of 9,6 trillion VND, including the Duong River Surface Water Treatment Plant. With the completion of these projects, the rate of people living in rural areas having access to clean water is estimated at 86.6%, an increase of 49.9% compared with 2016.
Waste and discharged water treatment are also receiving great attention from investors. Besides the ongoing construction of Yen Xa wastewater treatment facility, Hanoi is setting up plan for the construction of 02 wastewater treatment plan in Yen So and Long Bien. It is worth noting that in addition to the involvement of enterprises, Hanoi also receives the much needed supports form citizens during the site clearance process, so that these projects are quickly implemented.
In order to speed up the preparation phases for projects, Hanoi People’s Committee requests the government to authorize the city in approving public invested project under category A.
For large scale projects with high number of total investment, it is necessary for Hanoi to be proactive in choosing investors and granting them with suitable permits.
