VIETRADE - Over 20 years of foreign investment attraction, FDI sector has developed continuously and made an important contribution to Hanoi soci-economic development plan. FDI enterprises gradually become an inseparable part of the city’s economy.
RESULTS OF LURING FOREIGN DIRECT INVESTMENT (FDI) INTO HA NOI
The mechanics of FDI attraction in Ha Noi include 4 periods as follows:
- The period I (1989-1992) was the first 4 years of carrying out the foreign investment law in Viet Nam. In 1989, Ha Noi only lured 4 projects at total investment capital of USD 48 million. In the next 3 years (1990-1992), it attracted 47 projects at capital of USD 772 million, a 12-fold rise on project and a 15-fold rise on capital, averaging 15 projects and USD 240 million on registered capital per annum.
- The period II (1993-1996) marked FDI capital rate and scale. The 1993 jumped a 2.8 fold against 1992, later soaring a year-on-year number, and 1996 amounting to USD 2,641 million, an 8.8 fold rise compared to by late 1992. The year 1996 made a line between the period II and III, starting slowdown of FDI attraction.
- The period III(1997-2004) fell the period of Asian Financial Crisis, so FDI capital decreased sharply at average reduction rate of 62% (1997-2000), and went down at the bottom level of USD 100-300 million (1997-2000); the lowest is the year 2000 at capital of USD 100 million.
The period III lured 426 projects and registered investment capital of USD 3,048 million.
- The period IV has started since 2005. Highlighted was the year 2005 on which Hanoi was the leading city nationwide for FDI capital attraction, luring USD 1,585 million from 166 projects, including new licensed and capital increased ones. In 2006, Hanoi stuck to attracting as many as 167 projects at total registered capital of USD 1,900.9 million. In 2007 though the number of FDI projects was 147, higher than 2006, total registered capital was only USD 1,797 million, lower than 2006. In 2008 projects increased by 303 and capital was USD 5,009 million, so both were up. Total period IV was 810 projects and had registered capital of USD 10,291.9 million.
Until December 31 2008, Ha Noi built the investment relationship with 41 countries and territories, and had
1,235 effect projects at total effect registered capital of USD 15.6 billion and total implemented capital of USD 6.2 billion.
ORIENTATION FOR FDI ATTRACTION IN THE NEXT PERIOD
Spending more than 20 years on FDI attraction, Hanoi is now embarking on a new development based on joining with former Ha Tay Province and communes of Hoa Binh and Vinh Phuc Provinces. The new-scaled capital yields investors such new opportunities as infrastructures, urban construction, and services. It was no small wonder that series of large scaled FDI projects, during the last 2 years, were carried out in Ha Tay such as Bac An Khanh Township Project of Posco Group and Vinaconex Corporation. Series of new township projects were built in west and north Hanoi. Although they lie on former Hanoi, the construction caught somewhere Hanoi shall be expanded to. At present, Lang – Hoa Lac Road axis is noted by domestic and foreign investors and can be considered a vital premise to lure FDI for involved domains.
Jumping at the development, Hanoi Municipal People’s Committee submitted its petition to the Central
Government to lure FDI in the next period. The petition is as follows:
- As regards projects listed in special preferential ones for investment, Hanoi is allowed to approve and license investment certificates without requesting opinions from ministries, sectors. The method shall make it possible to shorten the time of certificate licensing to 7- 10 days.
With respect to other projects, Hanoi, despite having requested pieces of advice from ministries, asks no longer opinions from them.
- Hanoi is closely coordinated to free enterprises from difficulties and obstacles complete its mechanism, investment policies, business conditions, trade, and customs in harmony with international economic integration process, in contribution to more convenient Hanoi investment environment.
- The Government is asked to instruct ministries and sectors to add the terms that guide implementation of investment laws, enterprise laws, specific purpose laws, as well as content related to WTO implementation commitment.
- Hanoi, in the coming years, needs big investment resources, in which FDI capital makes up 17-20%, to satisfy its socio-economic development. Accordingly, it closely works with the Government, ministries, and sectors to uphold big projects in the city compass.
- Based on its concrete proposals, Hanoi is allowed to apply mechanism, preferential policies, particularly
some big projects suited to its socio-economic development orientation and preferential investment (high
biotechnology parks, bank-finance center, data processing –informatics technology centers, townships- high technology parks).
Ha Noi, coupled with those above, also sets vital solutions to attract FDI capital, including the planning beforehand for way of introducing public-announced investment places, enhances administrative procedures innovation, builds up and carries out mechanism, breakthrough policies, completes information technology infrastructures. Additionally, it sets up socio-economic information systems, invested and set up new intensive IPs to satisfy demands for investors, implemented ground clearance and offer infrastructures outside the perimeter fences, fostered vocational training to supply skillful laborers to investors…
Hanoi, on the national investment map, is now a fascinating area in that it has old high-odds and new potentialities.
SECTORS AND FIELDS CALLING FOR INVESTMENT
- Developing bank and finance centers
- Investing in development of townships, trade centers, office buildings for leasing, exhibition areas
- Expanding development- research-training centers
- Improving and building up old apartment buildings into modern and new ones
- Developing sectors of electronics, informatics, equipment, cosmetic, agricultural products processing
- Setting up and expanding H.T agricultural areas
- Developing projects of tourist areas-services, and luxurious resorts
- Investing in development of advanced health fields, and international-recognized hospitals
- Investing in education
- Investing in transport infrastructures and projects in partial contribution to environmental protection (waste treatment).