Ha Noi looks to enhance attraction of new-generation FDI

07/07/2020

VGP – In order to maintain strong socio-economic development, Ha Noi is targeting to attract high-quality foreign direct investment (FDI), support development strategies for high-tech industries with high added value, improve the supply capacity of local businesses and create better jobs.

Under the MoU, the IFC will assist Ha Noi to design and implement a new-generation FDI attraction strategy in line with the Politburo’s orientations and the Government’s action plan for foreign investment attraction by 2030.

Ha Noi is one of the fastest growing cities in Asia, contributing one-fifth of Viet Nam’s gross domestic product (GDP). 

With a population of over 8 million, the capital city attracted US$8.45 billion worth of FDI in 2019, the largest figure among the 63 cities and provinces. 

The FDI inflows focused mainly on the areas of real estate development, processing & manufacturing, and telecommunications & information.

In the first five months of 2020, Ha Noi’s FDI attraction reached US$1.045 billion, including US$327 million registered for 255 new projects, US$378 million added to 63 existing projects, and US$340 million spent on capital contribution and share purchase. 

In particular, trade and services was the largest FDI recipient with US$411 million, or 39.3% of the total registered capital, followed by real estate and construction with US$411 million (36.1%), the processing and manufacturing industry with US$192 million (18.4%), and agro-forestry with US$1.7 million (0.2%).

Chairman of the Ha Noi People’s Committee Nguyen Duc Chung said that attracting FDI under the strategic direction as defined in the Politburo’s Resolution No. 50/2019 on orientations to perfect mechanisms and policies and raise the quality and efficiency of foreign investment by 2030 plays a crucial role in maintaining the city’s sustainable economic growth and employment and implementing its industrialization and modernization plan until 2030.

To promote Ha Noi’s FDI inflows, the International Financial Corporation (IFC), a member of the World Bank Group, recently signed a memorandum of understanding (MoU) with the Municipal People’s Committee on supporting the city in attracting new-generation FDI and diversifying capital sources through financial instruments and technical advice, aiming to help Ha Noi maintain high economic growth, strengthen its competitiveness, and ensure sustainable development for the common prosperity of local citizens.

Under the MoU, the IFC will assist Ha Noi to design and implement a new-generation FDI attraction strategy in line with the Politburo’s orientations and the Government’s action plan for foreign investment attraction by 2030. 

In addition, the capital city will also receive the IFC’s support in diversifying investment sources. With its global network of customers and partners, the IFC’s efforts will focus on Ha Noi’s key potential areas such as finance, infrastructure, logistics, health and education.

The Ha Noi chairman welcomed the IFC’s assistance in developing and implementing a new investment strategy, as well as in diversifying investment sources for the city and mobilizing quality investors through its global network. 

                                 By Vien Nhu