Hanoi eases conditions for foreign investors

06:00 | 13/11/2021 Society

(VEN) - Hanoi has for years been a leading locality in drawing foreign direct investment (FDI), especially by large international enterprises that have maintained good operations despite the pandemic.

Nine-month FDI

According to data from the Hanoi Statistics Office, Hanoi attracted an additional FDI capital of US$11.1 million in September and US$927 million in the first nine months of this year, the latter of which includes US$162.6 million of 246 newly licensed projects, US$492.4 million worth of increased capital of 93 projects, and US$272 million in other foreign investments.

hanoi eases conditions for foreign investors

Apart from applying the government’s investment promotion policies, Hanoi has its own incentive policies to help FDI businesses overcome difficulties

Nonetheless, the Hanoi Department of Planning and Investment said the Covid-19 pandemic had decreased FDI in the capital and continues to affect operations. For example, transportation of goods from abroad required for production is still limited by pandemic control measures. Many enterprises in industrial zones are encountering difficulties in worker transportation and implementation of the “three-on-the-spot” solution (to arrange for employees to temporarily work, eat and sleep on-site) or “one route, two destinations” solution (arrange one transportation route between home and the workplace). FDI enterprises are also affected by the current specialist immigration policy.

Creating the best conditions

Apart from applying the government’s investment promotion policies, Hanoi has its own incentive policies to help FDI businesses overcome difficulties. In addition to implementation of healthcare measures and the government’s pandemic control regulations, the city’s Department of Planning and Investment has proposed that the Hanoi People's Committee halt inspection and fining of city-based FDI enterprises, helping them focus on production and trading development.

hanoi eases conditions for foreign investors
Hanoi will increase investment incentives, especially for technology enterprises and technology transfer

The department also worked with authorities to enable FDI companies to receive specialists from abroad, implement Covid-19 testing and vaccination, and accomplish investment, taxation, goods transportation and other procedures. Economic recovery and business promotion are among the key tasks for the final months of 2021. In early October, the Hanoi People's Committee directed sectors and organizations to immediately devise recovery and development plans in compliance with pandemic control regulations, propose business promotion policies and make it easier for enterprises to fulfill administrative and investment formalities. The measures also include dialogue conferences to remove difficulties for FDI and domestic enterprises, simplification of administrative procedures, and expansion of level-3 and level-4 online public services in favor of enterprises, cooperatives and household businesses.

Do Anh Tuan, Director of the Hanoi Department of Planning and Investment, said the department would strengthen on-the-spot investment promotion and help investors in business registration and project implementation. The city will increase investment incentives, especially for technology enterprises and technology transfer, and develop support industries. The department will suggest policies to attract more investment in supply chains and promote the FDI sector’s efficient technology transfer.

Economists say that while it has caused major challenges for Vietnam in general and Hanoi in particular, the pandemic is also offering foreign investment opportunities.

Vietnam in general and Hanoi in particular, with open policies and favorable conditions, have become more attractive to foreign investors. Hanoi remains one of the leading localities in terms of FDI attraction.

Nguyen Hanh