Hanoi attracted the most foreign direct investment (FDI) in Vietnam during the first 11 months of this year with US$7 billion, accounting for nearly a quarter of the total, according to the Hanoi Department of Planning and Investment.
|Production at the Hoya Glass Disk Vietnam Company in Thang Long Industrial Park, Hanoi. The capital city attracted $7 billion in FDI in the first 11 months this year. Photo kinhtedothi.vn
This figure was higher than the $6.3 billion registered in the same period last year.
Total registered investment capital for new projects and additions to existing projects reached about $2.1 billion, including $1.6 million for 788 new projects and $580 million for 160 existing projects.
During the 11 months, foreign investors poured $5.3 billion into Hanoi through capital contributions and share purchases.
Foreign investors have chosen Hanoi thanks to its good infrastructure, completed industrial zones and convenient transportation. The capital is one of the centres of economy, industry, trade and services and the population is rising sharply, creating a huge demand for housing.
Unsurprisingly, the largest recipients of FDI include real estate, manufacturing and processing, commercial services, and information and communications, according to the department.
The largest foreign investors in Hanoi are Japan, Singapore and the Republic of Korea (RoK).
This year, the city is looking to attract over $7.5 billion in FDI, but many experts predict it will surpass $8 billion.
Hanoi is planning to attract more FDI associated with sustainable development, while prioritising quality projects as well as value-added and highly competitive products.
The city is continuing to improve the investment environment, promote start-ups, improve the provincial competitiveness index and simplify administrative procedures.
During Prime Minister Nguyen Xuan Phuc's recent visit to the RoK, the leader of the Hanoi People's Committee Nguyen Duc Chung signed a memorandum of understanding with South Korean firms to invest $4 billion in Hanoi.
By 2025, Hanoi will need investment capital of about VND3 quadrillion ($130 billion) for development. The city’s budget can only meet about 20 per cent of the demand, so it will need to find a way of attracting the remaining.
According to the Department of Planning and Investment, in November, the city welcomed 60 new FDI projects with total registered capital of $600 million, including 52 wholly-foreign invested projects and eight joint venture projects.
Besides that, eight projects registered to increase their investment capital by $6.7 million in total while foreign investors poured $72.9 million into the city through capital contributions and share purchases.