A coner of modern and bustling Hanoi seen from above (Photo: dantri.com.vn)

In the first 10 months of this year, Hanoi attracted 1.28 billion USD in FDI, up 27% from last year. 185 million USD of it was for 283 new projects, 573 million went into 163 already existing projects, and 522 million was invested in capital contribution and share purchase deals.

The countries with the largest investment projects in Hanoi are Japan, South Korea, and Singapore. They are focused mainly on export-import, construction, IT, telecommunications, and manufacturing and processing.

Hung Sun, Vice Chairman of the Korea Chamber of Business in Vietnam, said, “Many investors think the Hanoi authorities have changed a lot in their direction and administration and are taking better care of investors. This has reassured Korean businesses.”

Hong Sun, Vice Chairman of the Korea Chamber of Business in Vietnam (Photo: Viet Linh/zingnews.vn)

Nguyen Quoc Viet, Deputy Director of the Vietnam Institute for Economic and Policy Research, said that the increase in FDI capital into Hanoi is a positive signal in the context that the consequences of the Covid-19 pandemic are even affecting regions and countries with strong economic potential and investment ability.

“The FDI increase for Hanoi this year represents a pretty spectacular recovery and creates strong prospects for future FDI attraction,” said Viet.

Hanoi authorities consider FDI businesses an important driver of development and integration. Hanoi’s goal is to attract from 30 to 40 billion USD in FDI, of which 20 to 30 billion will be disbursed between 2021 and 2025, in conjunction with its Sustainable Development Goals, with priority given to quality projects and highly competitive products.

To maintain its position, a project was approved last year that will establish some new industrial parks in Hanoi in the 2021-2025 period: Soc Son Industrial Park, Dong Anh Industrial Park, Bac Thuong Tin Industrial Park, an Expanded Phu Nghia Industrial Park, and Phung Hiep Industrial Park.

In addition, Hanoi is speeding up the Ring Road No. 4 project, which will enhance regional connectivity and promote urbanization toward socio-economic development and investment attraction.

Associate Professor Dr. Tran Dinh Thien, Former Director of the Vietnam Institute of Economics, underscored the top need to prepare urban and industrial infrastructure to attract investment.

“If the domestic market is properly reformed, there will be more opportunities to attract foreign investment. But more foreign investors with higher-quality projects create greater pressure for Hanoi to reform,” said Thien.

Hanoi is combining FDI attraction and sustainable development by prioritizing quality projects, products with added value, and high competitiveness, with a focus on urban infrastructure development, smart city building, auxiliary industries using modern and environmentally friendly technologies, IT projects, R&D, tourism, financial services, banking, human resource training, high-tech agriculture, and safe food.

According to Nguyen Manh Quyen, Vice Chairman of Hanoi’s People's Committee, “Hanoi will complete its planning by making lists of investment attraction for each location, field, and product, select high-tech projects, and promulgate appropriate programs, mechanisms and policies.”

Hanoi’s achievements in attracting FDI over the past 10 months have boosted foreign investors' confidence in the investment environment of Vietnam and Hanoi. If Hanoi can capitalize on its advantages and get the close direction from the Government, it will continue to attract investors.