Hanoi seeks more Japanese capital

09:03 | 29/04/2019 Cooperation

(VEN) - Japan invested in 131 new projects in Hanoi in 2018, with total registered capital of US$4.7 billion, accounting for 89 percent of the city’s total newly registered capital. Reflecting Japan’s leading role in the capital’s development, the Hanoi People’s Committee organized a conference last month to promote further investment and tourism cooperation with Japan.

hanoi seeks more japanese capital

Real estate tops investments

Nguyen Manh Quyen, director of the Hanoi Department of Planning and Investment, said Japan is a top foreign investor in Hanoi with accumulated registered capital of over US$10 billion, accounting for 25.5 percent of the city’s total FDI. Japan is also a leading ODA donor to Hanoi with 32 projects totaling nearly US$3 billion, making up 58.8 percent of the city’s total ODA commitments.

Japanese-funded projects, such as the Nhat Tan-Noi Bai Expressway, Nhat Tan Bridge, Noi Bai International Airport, and Thang Long Industrial Park, have contributed to the capital city’s development.

Japanese firms have been investing in various projects with effective operations in the city, mainly in the real estate sector with US$4.5 billion, the manufacturing and processing sector with US$3.95 billion, trading activities with US$570 million, catering and accommodation services with US$221 million, and others.

More than 300,000 Japanese tourists visited the city last year, making Japan Hanoi’s third biggest tourism partner. Hanoi People’s Committee Deputy Chairman Nguyen Doan Toan said the city wants to continue attracting investment from Japan in high-tech and agriculture, urban railway, human resource development, tourism, high-quality health services and trade.

Special Advisor to the Japanese Cabinet Isao Iijima emphasized the opportunity to exchange experiences and promote cooperation in culture, education, health and tourism between Hanoi and Japan. He expressed his hope for enhanced cooperation between Vietnamese businesses and Japanese firms.

Investment incentives

At the conference, Japanese firms raised questions about preferential policies related to land lease in industrial zones; regulations for adjusting investment certificates for projects under the authority of provincial people’s committees; tax incentives for investment in waste treatment in Hanoi; regulations on the use of foreign workers; and areas for investment priorities in Hanoi. The Japanese Embassy in Vietnam also sent the Hanoi People’s Committee a list of 19 difficulties and problems facing Japanese firms in their trade and production activities in Hanoi.

Nguyen Duc Quang from the Hanoi Industrial and Export Processing Zones Management Authority said Hanoi currently has nine industrial zones and businesses operating in them enjoy preferential policies at the central and local level. Article 16, Clause 1 of the Law on Investment stipulates the sectors and trade activities eligible for investment incentives, including high-tech activities, high-tech support industry products, and research and development. FDI companies investing in industrial zones are also eligible for preferential policies, including land lease. At the local level, businesses investing in industrial zones are entitled to use transport, electricity and water infrastructure systems.

Regarding areas for investment priorities in Hanoi, the capital city is urging Japanese firms to invest in synchronous and modern urban infrastructure development, traffic, smart city, drainage infrastructure, and the manufacturing and processing sector.

Nguyen Manh Quyen said Hanoi aims to reach more than US$5 billion in FDI attraction and over US$2.3 billion in FDI disbursement in 2019.

Hanoi People’s Committee Deputy Chairman Nguyen Doan Toan said Hanoi consistently helps Japanese firms and

investors overcome difficulties.

Nguyen Hanh