Hanoi Gets Ready for New Investments

According to Mr Nguyen The Quang, Vice-Chairman of Hanoi People’s Committee, in 2005, the city has increased the registered investment capital to US$1.8 billion with 135 projects. Among 40 countries and territories investing in the city, Asian investors account for the biggest share with Singapore, Japan and Republic of Korea making up of 61.3 per cent of the registered capital. Luxembourg has risen to the third place after Singapore and Japan. Hanoi ranks second among Vietnamese cities in foreign investment. In the first 10 months of 2005, it rose to the first position in foreign investment with nearly US$1.4 billion.

 

In 2006, Hanoi will encourage investments in the production of new materials, new energy, hi-tech products, bio-technology, information technology, agricultural production and processing, new strains and species, environment protection, infrastructure, tourism, services, labour-intensive projects, industrial zones and economic zones.

 

For his part, Vice-Minister of Planning and Investment Nguyen Bich Dat, said that to be the centre of high quality services, Hanoi must attract foreign investments in finance, banking, telecommunication, passenger transport, science and technology. The city should also increase investments in health, education and vocational training. The demand of high quality hotels, offices and apartments will increase while the supply remains limited. Investment is also needed in this sector.

 

The investment in agriculture should be oriented to ecology, organic products, bio-technology and hi-tech agricultural zone in the suburb of Hanoi. Projects of high value flowers, bonsai, and medical herbs can also be developed. Hanoi must accelerate administrative reform, applying one-stop shop to facilitate the investors.

 

Mr Tran Duc Vu, Deputy Head, Planning and Investment Department of Hanoi pointed out that in the 2006-2010 peiod, Hanoi has targetted total FDI of U$5 billion. The city will support investors in the work place and production cost with reasonable and competitive land rental. The city will cover land compensation and ground levelling, support the training and recruitment fees, and apply a single price on service. In addition, other incentives will also be applied such as a reduction of income tax and land rental depending on the projects.

 

Hanoi is, in fact, creating most favourable conditions for the influx of foreign investments in the coming years.