Hanoi, a leading FDI attractor
Hanoi, a leading FDI attractor
The development of a network of industrial parks and clusters as well as efforts to accommodate investors have maintained Hanoi’s top standing in attracting foreign direct investment (FDI).
Foreign investment leader
According to the municipal Department of Planning and Investment, the city attracted an additional US$992.4 million in FDI in the first nine months of this year, up 15 percent year on year, including US$141.3 million invested in new projects.
Department Deputy Director Nguyen Ngoc Tu said FDI projects are mostly in the fields of import and export, goods distribution, construction, information technology, telecommunications, processing and manufacturing. Most of the investment in the city is from Japan, the Republic of Korea and Singapore, while that from Europe and the US accounts for only 10 percent of total registered FDI capital, he said.
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FDI projects have played an important role in promoting the city’s economic development, serving as a driving force for its exports and technology renovation, the official added. Particularly, the FDI sector has helped expand the export market and supported domestic firms in joining the global supply chain through the supply of materials and business cooperation, Tu said, adding that FDI firms have also motivated domestic firms to update their technologies through the pressure from competition and requirements in adapting to the globalization.
However, he also pointed to several shortcomings in the city’s FDI quality and efficiency. FDI is still concentrated in a number of labor-intensive sectors using low technology, such as processing (textile and garment, leather and footwear, and wood processing), assembling (electronics, automobiles, motorbikes) and food processing industries. FDI firms’ connections with other economic sectors remain poor.
Hanoi remains a leading FDI attractor |
Completing industrial zone network
According to experts, Hanoi’s attraction for investors is due, among other things, to the development of its infrastructure system. As one of the largest economic and cultural centers in the country, it also attracts more qualified human resources compared to other localities.
In the 2021-2025 period, the city plans to establish two to five new industrial parks, aiming to meet the demand of investment attraction and industrial production development. The City People's Committee recently issued Decision 3339/QD-UBND authorizing the planning and construction of industrial zones in the city.
By 2030, the city expects to have 159 industrial clusters to meet investor demand, covering over 3,204 hectares of land. The city Department of Industry and Trade’s representative said Hanoi already has 70 operating industrial clusters covering 1,686 hectares of land, attracting nearly 3,900 firms and more than 60,000 laborers. These businesses pay VND1.1 trillion in taxes to the state budget annually.
Nguyen Manh Quyen, Vice Chair of the Hanoi People's Committee, said the city will continue to implement administrative reform to speed up industrial zone infrastructure construction. This will promote domestic and foreign investment attraction, gradually contributing to the country’s industrialization and modernization.
