Hanoi has been widely applauded for its efforts in attracting investment and encouraging business expansion to support economic growth.
Hanoi is ranked second in terms of number of operational enterprises. Photo: Thanh Hai. |
In the first 10 months of 2020, Hanoi had 5,690 enterprises resuming operations, up 17% year-on-year, while the rate of online business registration continues to be 100%.
Hanoi remained third among 60 cities and provinces in Vietnam in terms of foreign direct investment (FDI) attraction during the period with US$3.13 billion, accounting for 13.3% of the total nationwide.
The city has been pushing for administrative reform and improving the business environment as an effort to support the business community. This has been reflected in Hanoi’s rise in the Vietnam’s provincial competitiveness Index (PCI) rankings, jumping 41 places from 51st in 2012 to 9th in 2018.
Since then, the capital city has remained firm among the top 10 business-friendly localities. In 2020, despite the fact that the city’s ranking stayed unchanged at ninth, its PCI score climbed from 65.4 to 68.8, an evidence of strong efforts by the local authorities towards administrative reform and creating a favorable business environment for enterprises.
Among the 10 PCI sub-indices, Hanoi has the highest score in Entry Costs, which evaluates entry costs for business startups, at 7.98 points out of 10, and the lowest at 5.39 in Policy Bias, an indicator assessing the possibility of crowding out of private activity from policy biases toward state, foreign or connected firms.
Additionally, Hanoi also holds major advantages over other provinces and cities thanks to its strategic location and the position as a transportation hub with a concentration of airports, train stations, and major ports, among others.
Hanoi is also Vietnam’s economic and political center with a large population while its middle-class is expanding rapidly, resulting in high consumption power.
To date, Hanoi is ranked second in terms of number of operational enterprises at over 290,000, accounting for over 30% of the total number nationwide. In addition, the city attracts 16.7% of total projects and 10% of the country’s valid registered FDI.
Meanwhile, the contingent of scientists in Hanoi also makes up 70% of total in the country., and the rate of trained qualified workforce is double the national figure.
Hanoi’s economic growth rate is estimated to remain 1.5 times as high as the national average.
In the final months of 2020, Hanoi remains focused on improving the business environment towards greater transparency and fairness, while continuing to promote e-commerce, online payment and services under the instruction of Prime Minister Nguyen Xuan Phuc.
