Hanoi strives to realize FDI attraction targets

08:04 | 29/11/2013 Economy

(VEN) - Aware that it’s not easy to achieve the US$1.3 billion target set for foreign direct investment (FDI) attraction in 2013, the Hanoi People’s Committee has proposed a number of measures to boost FDI attraction.

In 2013, FDI attraction in Hanoi will possibly exceed the yearly plan by 20-30 percent

Statistics from the Hanoi Planning and Investment Department show that in the first 10 months of 2013, the city attracted US$1.01 billion of FDI through 315 projects, a rise of 16 percent compared with the same period last year, equal to 77.8 percent of 2013’s plan. This included the capital of newly licensed projects and increases in the capital of ongoing projects.

Specifically, the Hanoi People’s Committee granted licenses and approved capital increases for 279 FDI projects with total registered capital of 592.6 million; the management board of Hanoi’s industrial and export-processing zones granted licenses and approved capital increases for 35 projects with total registered capital of US$417.5 million; the management board of the Hoa Lac Hi-tech Park granted a license for a new project capitalized at US$1.4 million.

Hanoi Planning and Investment Department Deputy Director Nguyen Manh Quyen said that in the first 10 months of 2013, FDI businesses in the city maintained stable production and trading activities and achieved a slight growth. Their implemented capital reached US$638.5 million, equal to 91 percent of that in the same period last year; revenue reached US$8.65 billion, up four percent; the export value reached an estimated more than US$3.6 billion, accounting for 48.6 percent of the city’s total export value; tax payment grew 22 percent compared with the same period last year.

The Hanoi Planning and Investment Department said that these results were satisfactory in the context of numerous difficulties continuing to face the Vietnamese and global economies. Notably, vacant land in Hanoi has now become limited and therefore it’s difficult for the city to attract large-scale FDI projects.

To realize the US$1.3 billion target, right from the beginning of 2013, the Hanoi People’s Committee has proposed a number of measures to boost FDI attraction. To make the use of FDI capital more effective in the 2011-2015 period, the committee has issued some documents providing guidelines for simplifying administrative procedures in order to save time for businesses and investors. In addition, it has designed investment promotion programs and made a list of projects calling for FDI in the 2013-2015 period. The committee also outlined an action plan for Japanese FDI attraction towards 2015.

Following these efforts, the Hanoi Planning and Investment Department sent a 10-month FDI attraction report to the Ministry of Planning and Investment, indicating that satisfactory results of FDI attraction at its industrial and export-processing zones as well as the Hoa Lac Hi-tech Park allowed the city to be optimistic about the situation of the later months of 2013. The Hanoi Planning and Investment Department is dealing with procedures to grant licenses and approve capital increases for an additional seven FDI projects, and if everything goes smoothly, the amount of FDI capital running into Hanoi in 2013 will possibly exceed the yearly plan by 20-30 percent.

Gemtek, a Chinese Taipei business operating in the field of networking equipment, telecommunications and electronic components, is exploring possibilities for a US$300 million investment project to be based in the Hoa Lac Hi-tech Park. This project will possibly receive a license next year./.

By Chu Hoa

Theo ven.vn