Hanoi, Vietnam Apr 2021: FPT tower is a 27-story skyscraper in Hanoi, Hà Nội, Vietnam. This 14th complex of FPT is expected to provide workplaces for about 9000 people in the IT industry.
HANOI: With robust infrastructure development coupled with the drastic effort to improve the investment climate, Hanoi has made itself a magnet for capital influx and contributed significantly to promoting the country’s socio-economic development.
Between 2008 and 2022, the capital city attracted a total investment of 4.04 quadrillion dong with an annual increase of 11.4%.
In terms of foreign direct investment (FDI), Hanoi remains among the top destinations for inflows.
As of the end of 2022, the capital city attracted more than 4,500 FDI projects with total registered capital of more than US$33bil.
In the first 11 months of 2023, Hanoi attracted about US$2.7bil of FDI, an increase of 77.1% over the same period in 2022, ranking it fifth in Vietnam in attracting FDI, according to the Hanoi Department of Statistics.
They included a registered capital of US$335mil from 378 new projects and an increased investment capital of US$270mil from 157 existing projects.
Besides that, 299 foreign investors invested more than US$2bil by capital contributions or purchasing shares, including Japanese investor Sumitomo, buying shares of VPBank with a total value of US$1.5bil.
Hanoi expects to attract FDI of about US$3.1bil in 2023 and US$3.15bil in 2024.
According to economist Tran Dinh Thien, the increase in FDI flows into Hanoi this year demonstrated the improved confidence of investors in the business environment of the capital city.
FDI capital flows into Hanoi in recent years have tended to increase, especially after Vietnam signed on to many bilateral and multilateral free-trade agreements.
The capital city is considered a safe and attractive destination for foreign businesses and investors, driven by its competitive advantages gained from its robust infrastructure system, sustainable-development orientation, abundant human resources, and potential market, as well as the local authorities’ reform efforts.
According to the Foreign Investment Agency of the Planning and Investment Ministry, foreign investors have invested capital in large cities with favourable infrastructure, such as Hanoi and Ho Chi Minh City.
Under its development planning, Hanoi has identified priority industries and fields to attract investment according to general development trends. That helps the city to participate in the global value chain and exploit its advantages.
The fields include the development of urban infrastructure and smart cities, supporting industries, information technology, research and development, tourism, financial-banking services, human resource training, and high-tech agriculture.
In recent years, Hanoi has also focused on developing a digital economy.
A General Statistics Office’s report showed that in Vietnam, Hanoi is the leading locality in the information-technology industry with revenues of about 320 trillion dong, nearly 8,500 information technology enterprises, and two out of Vietnam’s five industrial parks for the information technology industry.
Many foreign-backed enterprises have been appreciative of the improvement of the business and investment environment of Vietnam, and Hanoi in particular. — Viet Nam News/ANN
