Hanoi Makes a Strong Play for EU Business
HANOI – During a meeting with members of the European business community, the Chairman of the Hanoi municipal People’s Committee, Nguyen The Thao, stated that “Hanoi is committed to creating an open and transparent investment environment for foreign businesses, especially from the European business community.”
In pursuit of this goal, Hanoi has begun a series of meetings with the relevant agencies and localities throughout the city in order to speed up administrative reforms and develop a more attractive investment environment.
Mr. Thao expressed his assurances that Hanoi would apply the “one-stop-shop” mechanism to investments and that city officials would be more responsive to investors’ concerns. Additionally, in a bid to increase investor trust, city officials have pledged to be more open and honest about the potential investment opportunities present in the city.
Hanoi is fast becoming a “go-to” destination for foreign investment. It has ongoing relations with more than 100 cities around the world and has cooperated on numerous projects with the EU. With manufacturing, and other industries, beginning to move away from China and with Vietnam’s large and increasingly prosperous consumer population, the country is becoming much more attractive as an investment destination.
Currently, there are around 2,727 FDI projects operating in Hanoi with a total investment capital of US$21.9 billion, the vast majority of these projects take place in the sectors of: manufacturing, real estate, processing, information and communications technology, and entertainment services.
Nineteen EU member states have invested in 290 projects worth US$2.61 billion. The main investor countries are:
- France with 68 projects;
- Germany with 44; and
- Denmark with 42;
During the 2012-2013 period, EU businesses’ turnover in Vietnam hit a high of VND25.7 trillion and added almost VND1.78 trillion to the State budget.
Chairman Thao also singled out a number of areas that EU businesses could focus on in order to be even more successful in Hanoi, these areas included: high quality services, banking, trade, electronics, IT, high-tech park construction, support industry, resort development, education and training, professional health care, hospitals and environment pollution treatment. All of these areas will receive special government support and encouragement.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam in addition to alliances in Indonesia, Malaysia, Philippines and Thailand as well as liaison offices in Italy and the United States.
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