Hanoi lures 1.28 billion USD of FDI in 10 months

Hanoi (VNA) – Hanoi attracted 1.28 billion USD in foreign direct investment (FDI) in the first 10 months of this year, a rise of 27% year on year, reported the city Department of Planning and Investment.

In the January-October period, the capital city saw 283 new projects with a combined capital of 181.1 million USD. At the same time, 753 million USD was added into 163 operating ones, while 521.9 million USD was invested in capital contribution and share purchase deals.

According to the department, in October alone, Hanoi drew 21 new FDI projects worth 2.7 million USD.

Meanwhile, additional 237.1 million USD was injected into 22 underway projects. Foreign investors also poured 20 million USD to capital contribution and share purchase deals in the month.

In the month, the capital city saw more than 2,500 newly-established enterprises, up 37% year on year, with a total registered capital of 18.3 trillion VND, down 32%. However, 268 companies were dissolved, up 20%, while 1,264 businesses halted their operation, up 50%, and 824 others resumed operations, a rise of 24%.

The figures pushed the number of new companies in Hanoi so far this year to 24,900, a year-on-year increase of 29%, with a total capital of 283 trillion VND. The number of dissolved companies rose 19% to 3,000, while 8,900 firms operated again, up 2.4%.

The department said that in order to continue to attract more FDI, Hanoi will increase investment promotion activities to attract investors from major markets of the US, Japan, the Republic of Korea, Singapore, China, and European countries.

Alongside, it will promote the development of the infrastructure system and high-quality human resources, while strengthening the connectivity between the foreign-invested sectors with domestic firms.

In the 2021-2025 period, the city plans to establish 2-5 new industrial parks, aiming to meet the demand of investment attraction and industrial production development.

By 2030, the city expects to have 159 industrial clusters with a total area of over 3,204 hectares. Along with the operating clusters, the city is speeding up the construction of new ones to meet investors’ demands.

A representative from the city Department of Industry and Trade said that currently, Hanoi has 70 operating industrial clusters covering 1,686 hectares, attracting nearly 3,900 firms and more than 60,000 labourers.

Hanoi will continue to apply administrative reform measures to speed up the construction of the technical infrastructure system for industrial parks and clusters, thus meeting the demand for production space for both domestic and foreign investors.

At the same time, the city aims to raise the quantity and quality of FDI projects by accompanying and supporting businesses and investors, and improving the business and investment environment and competitiveness.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, in the first 10 months of this year, the country’s total newly-registered capital, adjusted capital, and capital contribution and share purchase stood at 22.46 billion USD, down 5.4% year-on-year.

Real estate was a huge magnet with a total investment of 3.9 billion USD, followed by electricity production and distribution with 928 million USD, and scientific and technological activities with 835 million USD.   

Wholesale and retail, processing and manufacturing, and scientific and technological activities were the sectors with the largest number of newly-registered projects, accounting for 29.9%, 24.8% and 16.7% of the total number of newly-register projects in the country.

Singapore was on top of the 103 countries and territories investing into Vietnam over the year with 5.3 billion USD, accounting for 23.8% of the total foreign investment into the country.

Japan came second with 4.2 billion USD and the Republic of Korea (RoK) came third with 3.9 billion USD. Other names further down the list included China, Hong Kong (China) and Denmark.

Despite its third position regarding investment capital, the RoK topped the list of investors when it comes to the number of newly-registered and capital-adjusted projects in the ten-month period./.