[NEWS] HA NOI: 63% OF FDI INVESTMENT WAS DIRECTED TO THE REAL ESTATE SECTOR

So far, Hanoi has attracted a total of 69.844 million USD in FDI (ranking second nationwide). Notably, real estate is the largest FDI attraction with 63%. 

According to the report of Department of Planning and Investment in Hanoi, so far, Hanoi has attracted a total of 69.844 million USD in FDI (ranking second nationwide), including 7,099 newly granted projects with a total registered capital of 28.459 million USD; 2,004 projects to increase capital with the registered capital increase reaching 11.550 million USD; 5,017 capital contributions and share purchases with the value of capital contributions reaching 21.836 million USD. Real estate is the largest FDI attraction (63%), followed by wholesale and retail services (9%), construction and science & technology (5%)...

According to the Department of Planning and Investment in Hanoi, foreign direct investment and activities of economic zones with foreign direct investment have achieved satisfactory results despite the difficulties posed by the Covid-19 pandemic and the global economy. 

In 2022, the total FDI attracted amounted to 1.77 billion USD, ranking 6th nationwide; in the first four months of 2023, it ranked first nationwide with 1.82 billion USD. This shows that foreign investors have great confidence in Hanoi's investment environment. Many projects in the fields of healthcare, education, energy, processing and manufacturing... are newly granted or increased capital with the value of capital contributions reaching more than 1 million USD, contributing to the acceleration of Hanoi's economic recovery. 

In addition to the positive contributions mentioned above, there are still some obstacles to FDI attraction and utilization, resulting in lower FDI attraction results in the past two years compared to the 2018-2020 period, mainly due to the prolonged investment preparation and implementation procedures, inadequate technical infrastructure, limited land funds, high land rent compared to neighboring areas, and some overlapping regulations which have yet to be harmonized between the Investment Law and sector-specific laws. 

Recently, Vice Chairman of Hanoi's People's Committee Nguyen Manh Quyen chaired a working session with the Ministry of Planning and Investment to enhance the effectiveness of investment promotion, FDI attraction and management in the capital city.

At the working session, Hanoi suggested that for investment "leakage" and "round-tripping" cases, the Ministry of Planning and Investment and the Ministry of Public Security should provide specific guidance on identifying such behaviors. 

At the same time, specific guidance should be provided for sensitive industries and investment targets, those not regulated in Vietnam's WTO Accession Commitments, to ensure that investments comply with legal regulations and security, defense, and foreign relations requirements.

For projects involving land use, Hanoi suggested that the Ministry of Planning and Investment should research and recommend to the Government to consider and instruct relevant ministries to provide specific guidance on the overlapping regulations, in the spirit of promoting decentralization, delegation of authority and clarifying the responsibilities between the Government and ministries, and between the Government, ministries, and local governments.

Particularly, for projects involving land granted before the administrative boundary integration (in 2008), that require changes to the planning, the Ministry should provide clear guidance on the conditions for transferring the selection and recognition of investors for such projects.

Vice Chairman of Hanoi's People's Committee Nguyen Manh Quyen said that Hanoi will establish additional industrial parks and clusters to create favorable conditions for foreign investment attraction. At the same time, efforts will be made to accelerate the release of land and improve the synchronous and modern infrastructure system.

In addition, Hanoi will direct relevant functional agencies to increase the quality of investment promotion activities, focusing on direct promotion and on-site promotion; actively select projects that are suitable for the potential and strengths of the capital city.

Furthermore, Hanoi will increase inspection to ensure investors fully implement the commitments they have made in the investment license.

Vice Chairman of Hanoi's People's Committee Nguyen Manh Quyen suggested that the Ministry of Planning and Investment should strengthen information exchange, continue to support and cooperate effectively with Hanoi in order to improve the effectiveness of foreign investment attraction in the capital city.

Source: https://baodautu.vn/ha-noi-63-von-fdi-dau-tu-vao-linh-vuc-bat-dong-san-d191908.html 

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