Hanoi seeks IFC support in FDI attraction

Hanoi seeks support from the International Finance Corporation (IFC), a member of the World Bank Group, in issuing the city’s green bonds and further attracting foreign direct investment (FDI) for development.

Overview of the meeting. Photo: Thanh Hai.

Secretary of the Hanoi Party Committee Vuong Dinh Hue gave his remarks in a meeting with IFC Regional Manager for Vietnam, Cambodia, and Laos Kyle Kelhofer on January 12.

“Hanoi is in the process of evaluating the 10-year implementation of the Law on the Capital City, which stipulates some modifications to the city’s special finance-budget mechanism,” noted Mr. Hue.

The Hanoi Party chief lauded IFC’s initiatives and activities in Vietnam in general, and in Hanoi in particular, with the highlight being the signing of a memorandum of understanding at the “Hanoi 2020 – Investment and Development Cooperation” last June.

“Thanks to the event, Hanoi was able to maintain a positive economic growth of 3.98% in 2020, 1.4 times higher than the national average,” he said, adding that the city’s state budget revenue was 6% higher than figure recorded in 2019, an all-time high figure.

IFC Regional Manager Kyle Kelhofer stressed Hanoi’s drastic efforts against the Covid-19 pandemic have helped create a safe environment for the people, including foreigners living in the city.

According to Mr. Kelhofer, total outstanding loans of IFC make up one-third of the total of the World Bank.

Mr. Kelhofer stressed the stability of Vietnam’s economic development over the past 25 years was a key factor for the IFC to continue providing support for the country in various fields, which makes Vietnam as IFC’s top 10 partners, and is on track to move to top 5.

The IFC Manager expected further cooperation with Hanoi to boost the development of the city and private sector, in which IFC will provide major financial support in both mid- and long-term for Hanoi in waste treatment, transportation and smart lighting.