This has been the largest amount of FDI recorded in Hanoi after 30 years of renewal and global integration, cementing the capital city as an ideal investment destination in Vietnam.
Hanoi topped the country in FDI attraction in 2018 with a total amount of US$7.5 billion, up 2.18 times compared to that of in 2017 and equivalent to 21.2% of Vietnam’s total FDI, according to Tran Ngoc Nam, deputy director of the municipal Department of Planning and Investment.
This has been the largest amount of FDI recorded in Hanoi after 30 years of reform and global integration, cementing the capital city as an ideal investment destination in Vietnam, Nam said at an meeting on December 25.
In 2018, 616 new projects have been approved with total investment capital of US$5.03 billion in 2018. The biggest-ticket projects this year include the smart city project in Dong Anh district with total investment capital of US$4.138 billion by Japanese trader Sumitomo Corporation; capital contribution of US$1 billion in Beverage Vietnam by Beerco; two projects developed by Japanese NIDEC Group at US$400 million.
Additionally, the local authority licensed the US$600-million Lotte Mall Hanoi project that embraces a hotel, apartment, office, and trade center complex; and the Heineken Brewery facility with additional capital of US$43 million, among others.
This positive result is attributed to a series of measures improving the business and investment environments, creating the most favorable conditions for investors, Nam said.
Hanoi has been providing support to investors and enterprises from the business registration procedures to project implementation.
In 2018, the city has approved simplifying and removing 61 administrative procedures, representing a cut of 23.3% and processing time has been reduced to within three working days, saving VND43 billion (US$1.85 million) per year in costs and expenses for enterprises.
So far, foreign investors have committed to pour over US$36.55 billion in Hanoi, with Japan taking the lead with US$10.6 billion, followed by Singapore with US$6.9 billion and South Korea with US$5.5 billion.
Real estate continued to attract substantial attention with investment capital of 34.8% of the total capital approvals.
Manufacturing and processing was the second most heavily invested at 24.4% of total registered capital, followed by information and communication (8.72%) and construction (6.29%).
Hanoi's gross regional domestic product (GRDP) in 2018 is set to grow by 7.37%, up from the 7.3% growth recorded last year, to reach VND904.5 trillion (US$39.13 billion). In 2019, the capital city expects its GRDP to grow more than 7.5%.