Hanoi, over the years, has been one of the leading localities in foreign direct investment (FDI) attraction thanks to the city’s efforts to accompany with and support investors.

Illustrative image (Source: VNA)

Hanoi, over the years, has been one of the leading localities in foreign direct investment (FDI) attraction thanks to the city’s efforts to accompany with and support investors.

Statistics from the Hanoi Statistics Office, in September, the capital city granted licences to three FDI projects worth 5.3 million USD, pushing the total FDI value in the city in the first nine months to 927 million USD, including 162.6 million USD on 246 new projects and 492.4 million USD added to 93 underway ones.

According to the municipal Department of Planning and Investment, COVID-19 has posed adverse impacts on foreign investment in Hanoi, causing a drop in the number of capital.

Meanwhile, difficulties have been seen in the transport of goods from other countries to Vietnam, while many businesses in industrial parks and clusters have faced obstacles in carrying labourers from their residence to workplace or applying the “three-on-site” and “one route – two destinations” models to maintain their operations.

At the same time, FDI firms have suffered impacts from immigration policies on foreign experts, the department noted.

Since the beginning of the year, Hanoi has seen the suspension of operation of about 200 FDI companies, mostly small and medium ones.

However, many large forms have still shown effective operations, while many foreign investors have increased investment in projects in the city.

As part of efforts to deal with difficulties facing investors and creating best investment environment for FDI businesses, along with preferential policies from the Government, Hanoi has rolled out various measures to help them overcome the pandemic.

Besides solutions to ensure safety against the pandemic, the department has given advice to the city People’s Committee on a number of solutions to assist FDI firms, including creating favourable conditions for them in administrative procedures so that they can focus on designing their production plans.

Alongside, the city has directed relevant sectors to take measures to deal with businesses’ difficulties in processing the procedure to receive foreign experts, COVID-19 vaccination and testing, tax, and goods transport.

In the remaining months of the year, the city will concentrate on promoting economic recovery and development as well as supporting local firms.

The municipal People’s Committee has asked sectors and localities to immediately built their own recovery and development plans right from October, while designing criteria of safe adaption to the pandemic and proposing mechanisms and measures to assist businesses.

Administrative procedures must be simplified to save cost, while online public services should be expanded to level three and four, thus giving maximum support to enterprises, asked the committee.

The committee assigned the Department of Planning and Investment to submit proposal on the organisation of a dialogue with local firms to seek ways to deal with difficulties facing them, especially those caused by COVID-19 pandemic.

Meanwhile, the city plans to form four working groups to deal with difficulties facing businesses in different areas, while speeding up the disbursement of investment in capital construction.

In order to attract more foreign investment and give best conditions for FDI firms to operate in Vietnam and Hanoi in particular, Do Anh Tuan, Director of the Hanoi Department of Planning and Investment said that together with cutting the number of administrative procedures and fostering coordination in the field, the city will strengthen on-site investment promotion activities and assist investors in all stages from business registering to project implementing and settling arising problems.

Hanoi will increase incentives for investors in prioritised sectors, including technology and supporting industry.

Experts held that COVID-19 has posed impacts to Vietnam and Hanoi in particular, but it also created opportunities in foreign investment.

Solutions given by the Government, ministries and sectors and the city have shown efficiency in encouraging economic recovery in the city, they said./.