Hanoi Attracts Over US$1 Billion in FDI in First Four Months of 2024

Hanoi continues to be a top destination for foreign direct investment in Vietnam, ranking among the top five destinations for foreign capital in 2023. Bolstered by strategic reforms and a vision for high-value sectors, the city is poised to unlock its full investment potential in the coming years.

According to data from the Hanoi Statistical Department, Vietnam’s capital attracted a total of US$1.13 billion in the first four months of 2024. This included 73 newly licensed foreign-invested projects with an accumulated foreign direct investment (FDI) intake of over US$1 billion. In addition, 47 projects received additional investment totaling US$79 million, while foreign investments injected a total of US$45 million in contributed capital or purchased shares.

In April alone, new FDI projects licensed with a total registered capital of US$103.9 million were established in Hanoi and a further 14 projects adjusted their investments upwards, totaling US$57.4 million.

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Meanwhile, between January and April 2024, Hanoi issued certificates for the establishment of a total of 9,400 new businesses with a total registered capital of VND 97.6 trillion (US$3.8 billion). This is a decrease of 6 percent in the number of businesses but an increase of 9 percent in the amount of registered capital compared to the same period last year. In addition, 4,500 businesses resumed operations, up 10 percent from the previous year, while more than 14,200 businesses registered for temporary suspension of operations, an increase of 24 percent year-on-year.

In April, a total of 2,514 new businesses were established, a decrease of 4 percent compared to the same period last year. The total registered capital of these businesses reached VND 25.6 trillion (US$1 billion), surging 24 percent year-on-year. Also, 758 businesses resumed operations, up by 14 percent year-on-year, while 1,878 businesses registered for temporary suspension of operations, up 16 percent year-on-year.

Hanoi’s position as a major investment hub in Vietnam

Hanoi remains one of the top destinations for FDI in Vietnam. According to the Hanoi Statistics Department, the city attracted a total of US$2.9 billion in 2023, an increase of 70.5 percent from the previous year, placing it in the country’s top five localities for attracting FDI.

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In line with the Vietnam government’s overarching strategy to boost investment promotion, Hanoi has undertaken comprehensive reforms aimed at attracting FDI across various sectors. The government’s focus is on high-added-value industries, such as manufacturing, logistics, tourism, education, healthcare, and clean energy.

To achieve this, Hanoi has set ambitious economic plans for key industries, with a particular emphasis on technology, construction projects, tourism, and urban development. The city aims to position itself as a leader in digital transformation and innovation by 2025, fostering a robust digital economy and startup ecosystem. Additionally, significant investments are earmarked for transport infrastructure projects, including metro lines, to alleviate traffic congestion and improve the quality of life for residents.

To drive growth and achieve its investment targets, Hanoi seeks to attract up to US$40 billion in FDI between 2021 and 2025, focusing on urban planning, clean water accessibility, and smart city initiatives. Part of its strategy to achieve this will include tackling issues that hinder foreign investment, such as the slow development of industrial zones and clusters, high land rentals, and small-scale support industry. The city is also committed to addressing environmental challenges, such as air pollution, which could impact its attractiveness to investors if left unmitigated.

Looking ahead, Hanoi aims to cultivate partnerships with key FDI markets, including South Korea, Singapore, Taiwan, the US, Europe, Australia, and New Zealand. Short-term priorities include optimizing public funds allocation, streamlining administrative procedures, and strengthening budget management.

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