On June 8, Vice Chairman of the Hanoi People's Committee Nguyen Manh Quyen chaired a meeting with the Ministry of Planning and Investment (MPI) to improve the effectiveness of investment promotion, attracting and managing foreign investment capital in Hanoi.
Working scene
According to the report of the Department of Planning and Investment of Hanoi , up to now, Hanoi has attracted about 69,844 million USD of FDI capital (ranked 2nd nationwide), of which, there are 7,099 newly licensed projects still in effect with a total registered capital of 28,459 million USD; 2,004 projects increased capital with the additional registered capital reaching 11,550 million USD; 5,017 capital contributions and share purchases with the capital contribution value reaching 21,836 million USD.
The sector attracting the largest capital is real estate (63%), followed by goods trading services (9%), construction and science and technology (5%). In 2023, the economy began to recover, FDI increased sharply, in the first 4 months of the year, the city's FDI attraction reached 1.82 billion USD (up 260% over the same period).
Attracting foreign investment and the operation of the foreign-invested economic sector still achieved encouraging results despite difficulties in the context of the Covid-19 pandemic and the world economy, specifically: Attracting in 2022 reached 1.77 billion USD, ranking 6th in the country; In the first 4 months of 2023, ranked first in the country with 1.82 billion USD.
This shows that foreign investors are placing great trust in Hanoi’s investment environment. Many projects in the fields of healthcare, education, electricity, processing, manufacturing, etc. have been newly licensed or have increased capital with contributed capital of over 1 million USD, contributing to accelerating the recovery of the capital’s economy.
In addition to the above positive contributions, the attraction and use of FDI capital still has shortcomings and inadequacies, leading to a decrease in attraction results in the last 2 years compared to the period of 2018-2020 due to a number of main reasons such as: the time for carrying out investment preparation procedures and project implementation is prolonged; unsynchronized technical infrastructure, limited land fund, high land rental prices compared to neighboring localities; some regulations are still overlapping and inconsistent between the Investment Law and specialized laws...
In order to effectively implement state management of investment in general and foreign investment in particular, at the working session, Hanoi City proposed that, in cases of "illegal" investment and "disguised" investment, the Ministry of Planning and Investment and the Ministry of Public Security provide specific guidance on signs of identifying "illegal" and "disguised" investment; provide specific guidance on the list of industries and sensitive investment targets not specified in Vietnam's WTO Commitments, ensuring investment licensing in accordance with legal regulations and ensuring security and national defense, avoiding sensitive cases of diplomacy and foreign partnership relations.
For projects using land, it is recommended that the Ministry of Planning and Investment study and recommend that the Government consider and direct specialized ministries to provide specific guidance on overlapping legal contents, in the spirit of promoting decentralization and delegation of power, clearly defining responsibilities between the Government and ministries and branches, and between the Government, ministries and branches and local authorities.
In particular, for projects using land that were licensed before the administrative boundary merger (2008), and now have to change the planning, it is recommended that the Ministry provide clear guidance on the transitional conditions for selecting and recognizing project investors.
Speaking at the meeting, Vice Chairman of the Hanoi People's Committee Nguyen Manh Quyen said that Hanoi will establish more industrial zones and clusters to facilitate foreign investment attraction. The city will also focus on site clearance, combined with accelerating the completion of the infrastructure system in a synchronous and modern direction.
In addition, the city will direct relevant agencies to improve the quality of investment promotion activities, focusing on direct and on-site promotion; proactively select projects that are suitable to the potential and strengths of the capital.
In addition, the city will strengthen inspection to urge investors to fully implement the committed contents as stipulated in the investment license.
Vice Chairman of the Hanoi People's Committee Nguyen Manh Quyen hopes and requests the Ministry of Planning and Investment to increase information exchange, continue to support and closely cooperate effectively with Hanoi to improve the efficiency of attracting foreign investment in the capital.
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