Hanoi industrial zones draw foreign capital

Hanoi industrial zones draw foreign capital

The Hanoi Industrial and Export Processing Zones Authority plans to establish a new industrial zone and complete investment procedures for other industrial zones and high-tech parks in the second half of 2022.

Hanoi’s industrial zones have engaged the interest of foreign investors

Nearly US$4.87 billion in revenues

According to the Hanoi Industrial and Export Processing Zones Authority, industrial and export processing zones in the city attracted investments of US$61 million and VND480 billion in the first five months of the year. Businesses in these zones reached revenues of nearly US$4.87 billion in the first half of the year and paid US$238.5 million to the state budget.

By the end of June, the city’s industrial and export processing zones were home to over 700 projects, including 303 foreign direct investment (FDI) projects with total registered capital of nearly US$6.1 billion and 399 domestically-invested projects worth nearly VND18 trillion. The electrical-electronics industry topped the list, accounting for 44 percent of total capital, followed by engineering with 24 percent and pharmaceuticals, agricultural processing, food, apparel and printing with 32 percent.

Japan ranked first among the 25 countries and territories investing in the city’s industrial and export processing zones, with high-tech projects of US$100-300 million by Canon, Panasonic, Yamaha, Meiko and Young Fast.

The electrical-electronics industry ranks first in attracting capital in Hanoi’s industrial and export processing zones

Putting five zones into operation

The Hanoi Industrial and Export Processing Zones Authority aims to attract US$400 million and reach revenues of US$8.2 billion for the whole year. To accomplish the goals, Hanoi Party Committee leaders requested relevant units to speed up the review of the development planning of industrial and export processing zones in order to scrap planning that is no longer suitable and establish new industrial zones in appropriate locations.

Hanoi is determined to complete the goal of establishing five new industrial zones in the 2021-2025 period. These include the 302.8ha Soc Son Industrial Zone in Minh Tri and Tan Dan communes; the 300ha Dong Anh Industrial Zone in Nguyen Khe, Xuan Non, Thuy Lam and Lien Ha communes and Dong Anh Town; the 112ha Bac Thuong Tin Industrial Zone in Van Binh, Ninh So and Lien Phuong communes; the 389ha expanded Phu Nghia Industrial Zone in Chuong My District’s Phu Nghia, Truong Yen and Ngoc Hoa communes; and the 175ha Phung Hiep Industrial Zone in Thuong Tin District’s Dung Tien, Nghiem Xuan, To Hieu and Thang Loi communes.

The new zones are needed to meet the requirements of attracting investment and developing industrial production, helping accelerate the city’s industrialization and modernization process.

In a meeting with Me Linh District leaders, Hanoi Party Committee Secretary Dinh Tien Dung agreed with the proposal on adjusting the planning of the Quang Minh II Industrial Zone and supplement the planning of the Tien Thang Industrial Zone.

VietNam Economic News