Ha Noi urged to change ways of using FDI capital

Deputy Prime Minister Vuong Dinh Hue (standing) at the meeting

Ha Noi needs to use a different approach in order to attract and effectively use foreign direct investment (FDI), given new opportunities and challenges that are expected to pop up in the next 10 years, Deputy Prime Minister Vuong Dinh Hue said at a working session with municipal leaders on January 29.

Mr. Hue suggested the capital city enhance investment and development cooperation, and consider foreign investors as important partners.

It is necessary to select investors and investment fields, and build an independent and self-reliant economy in line with the process of international integration, he stressed.

Vice Chairman of the municipal People’s Committee Nguyen Doan Toan said by December 31, 2018, Ha Noi had nearly 4,500 valid investment projects with total registered capital of US$ 36.6 billion.

He informed that Hanoi had 4,500 ongoing foreign invested projects with total registered capital of US$36.6 billion as of December 31, 2018. 

Last year, Ha Noi topped nationwide in FDI attraction for the first time in 30 years of economic integration, reaching US$7.5 billion, Toan said, adding that US$18.9 billion has been disbursed, accounting for 52.5% of the total commitments. 

The most attractive fields include real estate (29.53%), the processing and manufacturing industry (20.1%), and information communication (11.48%).

Currently, Japan is the biggest investor with nearly US$10.2 billion, followed by Singapore with US$6 billion, and the Republic of Korea with US$5.48 billion.

In 2019-2020, Ha Noi has defined some priority industries to draw investment in, towards joining global value chains and optimizing the city’s advantages and strengths.

In addition, it identified key markets for expansion, such as the U.S., the European Union (EU), Japan, and the Republic of Korea./.