Ha Noi – An attractive investment destination

08/10/2020

VGP – The efforts to attract investment and support local businesses in running favorable business are the two prominent highlights that demonstrate the responsibility, capacity and economic management efficiency of Ha Noi’s functional agencies.

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This also affirms that Ha Noi has been and will continue to be a safe and stable destination of top priority among both domestic and international investors when they consider making investments. 

Stably maintaining a top-ten place in the PCI rankings

After many years of constant improvement, Ha Noi has now been stably ranked among the top 10 cities and provinces in terms of the Provincial Competitiveness Index (PCI).

Between 2016 and 2020, the city’s total social investment was estimated at VND1.74 quadrillion (US$75.27 billion), 1.65 times higher than the 2011-2015 figure, equal to 43.9% of the GRDP and reaching the set target. 

Over VND1.1 quadrillion (US$47.6 billion) in non-budget capital was invested in more than 2,200 projects during the period.   

In particular, Ha Noi has implemented projects to develop its supporting industries (SI) in 2017-2020, with orientations to 2025, as well as the local SI development program during 2020-2025, while providing advice, training and technical assistance for SI businesses and organizing investment promotion seminars.

Taking the lead in improving the business climate

To affirm the capital’s position as a vanguard in improving the investment environment, supporting the development of enterprises and becoming a “creative city”, the draft political report of the 17th Congress of the municipal Party Committee has clearly identified the major tasks and solutions until 2025. 

Accordingly, Ha Noi will accelerate the restructuring of economic sectors associated with renovating growth models and improving productivity, quality, efficiency and competitiveness. 

In addition, the city will modernize and enhance the application of high technology, information technology and digital technology, as well as developing new advantageous industries to participate in the global value chains.

The capital will also strengthen the attraction of investment, especially in developing economic infrastructure; foster linkages between industrial parks in Ha Noi and other localities to establish large-scale and highly efficient industrial complexes. 

Priority will be given to developing spearhead industries, SI and the industries manufacturing products that have high technology content, great added value and high competitiveness.

At four investment cooperation conferences held from 2016 – 2020, Ha Noi issued investment licenses for 264 projects worth VND854 trillion (US$36.88 billion), as well as dozens of memoranda of understanding (MoU) with business organizations, domestic and foreign investors.

In 2019, the capital city topped the country in terms of FDI attraction for two consecutive years with US$8.67 billion, accumulating a total of US$35 billion in 2016 – 2020, a 4-fold increase against the previous five years.

With 286,096 operational enterprises as of April 2020, Ha Noi made up one third of the total number of 758,610 nationwide as of late 2019.

By Vien Nhu