10:23 | 28/08/2014 Investment
(VEN) - While foreign direct investment (FDI) that Vietnam attracted in the first six months of 2014 fell more than 30 percent compared to the same period in 2013, Hanoi’s FDI attraction increased 30 percent during the same period. About US$450 million in FDI was already invested in Hanoi in the first half of this year, an increase of nearly 20 percent over the same period of 2013.
FDI in the first half of 2014 in Hanoi increased 30 percent over the same period in 2013
According to data from the Foreign Investment Agency (FIA), in the first six months of 2014, Hanoi licensed 145 FDI projects with total registered capital of US$115.92 million and saw 50 other FDI projects to increase their capital by a total of US$476.1 million. In other words, Hanoi attracted an additional US$592.02 million in FDI in the first half of this year, up 30 percent from the same period in 2013 but accounting for only 45 percent of the US$1.3 billion target for 2014.
The manufacturing and processing industry was the top FDI attractor as it attracted more than 40 percent of all FDI that Hanoi lured in the first half of 2014. It was followed by trade in goods with a 20-percent contribution and science and technology with a 10-percent contribution. In the first seven months of 2014, the Republic of Korea (RoK) ranked first among foreign investors in the capital, accounting for 35.8 percent of the total investment capital. It was followed by Japan with a 35.7-percent contribution and Hong Kong, China with a 12.3-percent contribution.
As of July 2014, Hanoi attracted more than 3,000 FDI projects with total registered capital of more than US$23 billion, ranking third among the 63 provinces and cities in Vietnam.
Hanoi leaders attributed the below-expectation FDI in the first half of this year to difficulties faced by the economy, the quiet real estate market, and the fact that Hanoi doesn’t have much land for construction to attract industrial production projects. That is why Hanoi did not attract many real estate projects and large scale FDI projects. Most of projects that the capital attracted in the first half of this year involved in trade, services and information technology (IT), with an average registered capital of about US$800,000 per project.
Hanoi’s leaders said that the capital will continue to implement the scheme for improving FDI efficiency in the city in the 2011-2015 period. Hanoi will continue to implement, construct and issue a series of documents to simplify and shorten the time of accomplishing administrative procedures for businesses and investors, continue to implement the investment promotion program, construct lists of projects needing investment, and prepare an action plan for attracting Japanese investment to 2015.
Hanoi will revoke investment certificates and stop projects infracting law to improve the investment environment and set aside land for effective projects. In the first six months of 2014, Hanoi revoked investment certificates of and stopped 17 FDI projects, including 14 projects outside industrial zones and three projects inside industrial zones./.
By Nguyen Hoa