Many activities have been held by the Hanoi Department of Industry and Trade over the past years to create better links with foreign direct investment (FDI) enterprises which can aid the city’s businesses, according to Nguyen Dinh Thang, Deputy Director of the Hanoi Department of Industry and Trade.

"Strengthening linkages between Hanoi enterprises and FDI enterprises can help increase domestic value-added, create jobs, and improve productivity and market access for local firms," Thang said.

He noted that Hanoi has attracted some US$25 billion in foreign direct investment over the past five years, with priority given to sustainable development projects, especially the sectors of Hanoi's advantages such as high-tech investment, infrastructure, and high-quality human resources.

Companies showcase their products at the Hanoi Key Industrial Products Fair 2024. Photo: VGP

The city authorities are working to improve the business environment, developing a support industry plan for 2025, completing industrial parks and clusters and transport infrastructure, and developing e-government to make it more convenient for businesses to register, file, and pay taxes.

"Hanoi should adopt mechanisms to promote links between domestic and foreign enterprises, encourage multinational corporations to invest in the city, and develop creative and innovation centers," Thang said.

To remove obstacles, local officials have been in frequent contact with investors and helped them identify potential prospects.

According to the city's Department of Planning and Investment, Hanoi expects to attract $30-$40 billion in FDI in 2021-2025, of which 70% will be disbursed.

Director of the department Le Anh Quan said Hanoi will continue to focus on quality projects, especially with partners such as Japan, the United States, and Europe, to boost technology transfer. The development of digital technology, precision mechanics, automation, and semiconductor technology will drive Hanoi's industrialization and modernization.

The annual conference "Hanoi: Investment and Development Cooperation", which is attended by a large number of investors, affirms that the city is a safe and attractive investment destination.

Attracting FDI will enhance the city's competitiveness and realize its goal of rapid, sustainable, and modern development. After 15 years of administrative boundary expansion, Hanoi has always been one of the most attractive destinations for foreign investors. As the capital of Vietnam, Hanoi has absolute advantages over other places in attracting foreign capital, said Quan.

Electronics production at Katolec Vietnam in Quang Minh Industrial Park, Hanoi. Photo: Pham Hung/ The Hanoi Times

Additionally, the capital has strong attributes for sustainable socio-economic development, such as a highly skilled workforce and a large market with a variety of services. It has taken measures to improve investment conditions and organized investment promotion events to attract foreign capital. "The strong increase of FDI capital in Hanoi proves how much foreign investors are confident in the city's potential," he said.

Statistics by the Hanoi Department of Planning and Investment showed that in 2023, the city was one of the five provinces and cities attracting the highest FDI with $2.9 billion, up 70.5% year-on-year.

In 2024, the city is expected to draw about $3.15 billion worth of FDI, including $2.15 billion for land lease projects and $1 billion for trade and service projects.

Next year, the capital targets $2.7 billion worth of FDI, including $1.5 billion for land lease projects.