Hanoi (VNA) – Hanoi attracted 1.8 billion USD in foreign direct investment (FDI) in the first 11 months of 2024, with significant growth in capital poured to both new and underway projects, according to the municipal People’s Committee.
In November alone, the capital drew 152 million USD in FDI. The city saw 25 new projects with a total registered capital of 16.8 million USD, 20 projects that increased their capital by 99 million USD, and capital contribution and share acquisition deals valuing 36.2 million USD.
In the January - November period, Hanoi reported 258 new projects totalling 1.2 billion USD in registered capital, along with 180 active projects with combined capital increase of 283.2 million USD. At the same time, 213 foreign investors contributed 341.1 million USD through equity investments.
Despite the strong foreign investment inflow, Hanoi also saw a decline in newly-established businesses. In November, 2,095 new enterprises were set up, a 22% drop from the same time last year, with their registered capital falling by 48.6% to 31.9 trillion VND (1.2 billion USD). Though 651 businesses resumed operations, a 7.1% increase, 1,074 registered temporary suspensions, up 7.7%. The number of firms that were dissolved was 434, a 44.2% rise.
The results pushed the number of newly-established firms in the first 11 months of this year to 27,100 new businesses, with a total registered capital of 276.7 trillion VND. This represents a 6.9% decline in the number of companies and a 13.8% drop in registered capital from a year earlier. In this period, 9,100 businesses resumed operations, a 12.7% rise, and 22,500 others registered temporary suspensions, up 18.2%. More than 4,300 businesses dissolved, a 29.2% increase.
To further accelerate investment and trade activities and draw more FDI, Hanoi is focusing on administrative reforms and efforts to reduce licensing times for new projects. In 2025, the city will continue to improve transparency and businesses' access to information, while developing industrial zones, high-tech parks, and upgrading transport networks to facilitate connectivity for investors.
Besides, Hanoi will offer tax incentives and support for land procedures, with a focus on priority sectors such as high technology, clean energy, and digital transformation.
Nguyen Anh Duong, Director of the Hanoi Promotion Agency, highlighted that throughout 2024, the city has hosted numerous trade and investment promotion events in key international markets such as China, the Republic of Korea, Japan, and Europe. The city’s ongoing reform, removal of cumbersome procedures, and efforts to ease businesses’ difficulties have also continued to make it an increasingly attractive destination for foreign investors./.
