Administrative reform pays off

Hanoi leads in investment attraction

14:54 | 09/07/2019 Economy- Society

(VEN) - The concerted administrative reform carried out by the capital city under close direction and management of local authorities, has placed the city at the forefront of attracting foreign investment.  

hanoi leads in investment attraction

Leading in FDI attraction

According to the Hanoi Department of Planning and Investment, in the first five months of 2019, Hanoi attracted US$4.79 billion in foreign direct investment (FDI). During the same period, it approved 280 new projects with total registered capital of US$162 million, together with an additional US$295.7 million injected into 75 existing projects; and US$4.3 billion worth of stock purchases by foreign investors.

The department also reported that in June 2019, Hanoi was expected to grant investment certificates worth over US$500 to various projects, including a US$420 million multifunctional entertainment complex with a horseracing course and another US$50 million project by Korea’s Lotte FLC Joint Stock Company. Thus, in the first half of 2019, Hanoi drew in around US$5.3 billion in FDI and expected to continue to be the country’s largest six-month FDI attractor.

The department added that during the first five months, up to 9,420 new enterprises were established in Hanoi with a total registered capital of VND 97.5 trillion, a year-on-year rise of 36 percent.

Director of the municipal Department of Planning and Investment Nguyen Manh Quyen said the achievement was the result of determined administrative reforms and improvement of the investment environment, as well as measures taken to ease difficulties for businesses, especially administrative procedures.

Every year, the city seeks to update investment projects via investment promotion conferences. Open biddings are held to select the best investors. All procedures relating to investment attraction are carried out promptly to create optimal conditions for investors, he said.

According to the municipal People’s Committee, the city will continue to standardize administrative procedures and strengthen control and effective implementation of administrative procedures. Notably, city authorities have approved a plan to simplify 71 administrative procedures including 19 in the judicial field, three in construction, 10 in planning and investment, 34 in industry and trade, and 5 in natural resources and environment.

In the first six months of 2019, the city issued eight decisions to eliminate 298 procedures and announced 183 procedures under the regulations of Governmental Decree 92/2017/ND-CP dated August, 7, 2017. To date, the number of Hanoi’s administrative procedures totals 1,811, including 1,496 procedures at department level, 226 at provincial People’s Committee level, and 89 at communal People’s Committee level.

Seeking large-scale investment projects

To build on these positive results, Hanoi will focus on completing key administrative reforms in the second half of this year, fulfilling the target it has set for 2019 - “year of improving the efficiency and effectiveness of the political system”.

It will also review legal documents; propose amendments to those legal documents that no longer conform with exclusive jurisdiction; simplify administrative procedures to create favorable conditions for individuals and businesses; carry out the 2018 government decree on implementing the single-window mechanism in dealing with administrative procedures.

Hanoi also plans to prioritize State budget allocations for technical infrastructure projects or key projects to promote socioeconomic development. As for other areas, the city will focus on large-scale projects with high added value, using modern, environmentally-friendly technologies and adopt measures to help existing investors expand operations.

In addition, the city will call for investment projects based on a public-private partnership model, and investment from the private sector in areas of infrastructure, urban services and social security, with priorities given to green growth, parks, entertainment zones, social housing, apartment buildings for workers, renovation of old apartment buildings, and clean water in rural areas.

Hanoi hopes to have all its administrative procedures updated and monitored via its online one-stop-shop system by the third quarter of this year. Meeting the target would provide a breakthrough for attracting additional investment projects to the capital.

Nguyen Hanh