Hanoi to attract US$768 million in industrial parks in 2024

Total investment poured into Hanoi's industrial zones is expected to reach US$768 million in 2024, including half from foreign direct investment (FDI), an increase of 28% compared to 2023, Nguyen Hoai Nam, Deputy Head of the Board of the Hanoi Industrial and Export Processing Zones Authority (HIZA), said at the investment promotion conference on December 18.

Nam attributed the impressive figure to the well-equipped facilities which are created by the partnership between the city’s agencies. He highlighted the cooperation and efforts to facilitate technology transfer and promote sustainable development. 

Additionally, the investment promotion has helped strengthen cooperation and links between infrastructure and manufacturing companies within the industrial zones, as well as between local and foreign investors. 

Production activities at Vietnam Stanley Electric Company in the Tu Liem Small and Medium Industrial Cluster in Hanoi. Photo: Hoai Nam/The Hanoi Times

To boost the momentum for 2025, the HIZA plans to develop investment promotion programs to attract high-tech, environment-friendly and high-value-added projects with a focus on those with advanced technology while taking advantage of Hanoi's potential.

The HIZA is committed to strengthening its role as the direct government authority overseeing industrial zones, providing timely support to enterprises, and accelerating administrative reform and digital transformation to improve service efficiency, he said.

Nam also mentioned the importance of close coordination to support investors and to create a favorable investment environment. He said it's needed to accelerate the planning of industrial zone subdivisions to implement infrastructure projects as approved.

He called for further cooperation among stakeholders to speed up the implementation of infrastructure projects for newly established industrial zones, with a focus on site clearance to attract investment.

Speaking at the event, Tran Quoc Trung, Deputy Director General of the Department of Economic Zones Management under the Ministry of Planning and Investment, said that the HIZA is expected to achieve higher growth and attract more investment in 2024.

As 2025 approaches, Hanoi will implement the amended Capital Law and a new urban plan to make the 2021-2025 goals possible.

"The Ministry of Planning and Investment is committed to continuing to support Hanoi, its industrial zones, and the business community in fostering a favorable investment environment," he said.

At the event, representatives from numerous companies highlighted the significant improvements in Vietnam's business environment, particularly in the capital, where it has become easier to operate in the industrial zones. 

Tran Quoc Trung, Deputy General Director of the Department for Economic Zones Management, speaks at the event. Photo: Khac Kien/The Hanoi Times

Ulrich Petersen, Business Development Director of Pacific Land Vietnam, the investor of the Hanoi Biotech High-Tech Park project, said the project has a registered investment capital of $250 million. Covering an area of approximately 199 hectares in Minh Khai, Tay Tuu, Lien Mac, Thuy Phuong and Co Nhue 2 wards of Bac Tu Liem District, the project is one of the largest Irish investments in Vietnam to date.

Site clearance for the project is expected to be completed by 2025, allowing the company to complete investment procedures to begin construction. This high-tech park will become a regional hub for companies in biotechnology, information technology, automation, and new materials, with a strong focus on biotechnology.

The project will incorporate research and development (R&D), training centers, and manufacturing facilities for the display and trade of high-tech products. The company aims to attract international scientists in high-tech fields to work at the park and provide undergraduate and graduate education in advanced technologies.

According to the HIZA, there are currently 10 operational industrial zones in the city, covering a total area of 1,348 hectares, with nearly 100% occupancy. 

To date, these zones have attracted 733 investment projects, totaling nearly $9.3 billion, including 310 foreign direct investment (FDI) projects worth $7.4 billion. Investors from 27 countries and territories have shown interest in the zones.

Nguyen Hoai Nam said that the authority has proposed the establishment of the Hanoi Biotech High-Tech Park in 2024, an important step in attracting eco-friendly high-tech and biotechnology projects. The agency is on its way to fullfil its plan to establish 2-5 new industrial zones from 2021 to 2025.

Meanwhile, the HIZA accelerates the detailed planning of key industrial zones, including Soc Son, Bac Thuong Tin, and Phung Hiep while developing a strategy for the growth of Hanoi's industrial zone system in 2021-2030, with a vision to 2050.