Hanoi capitalises on advantages to attract FDI
A series of incentives and open mechanisms
Nearly a year after taking over the Hoa Lac Hi-Tech Park, Hanoi has been focusing on developing this technology hub into a hotspot for FDI in new and high-tech industries with great potential. The Hoa Lac Hi-Tech Park has attracted 109 investment projects (including 95 domestic and 14 foreign projects), with a total registered capital of approximately 115.5 trillion VND.
At the 2024 Hanoi Semiconductor Technology Investment Connection Day |
According to the Deputy Director of the Hoa Lac Hi-Tech Park Management Board Tran Dac Trung, the board focuses on creating a portfolio of projects to attract investment in necessary social infrastructure development. At the same time, they are actively proposing and developing appropriate mechanisms and policies to create the best conditions for investors. Many preferential policies are already in place for investors here, particularly for large-scale projects (with a total investment of over 4 trillion VND), which are now eligible for 30 years of corporate income tax incentives, instead of the previous 15 years.
Shortly, the Hoa Lac Hi-Tech Park is expected to become increasingly developed and attract more investors in high-tech industries. According to the plan, by 2027, the Korea Advanced Institute of Science and Technology (KAIST) will invest and support Vietnam in establishing a Semiconductor Research Lab located at the park, contributing to the sustainable development of the semiconductor technology industry in Vietnam.
The Hanoi Supporting Industries Business Association (HANSIBA), N&G Group, and 10 member companies of the Kobe Regional Aerospace Industry Network (Japan) signed a cooperation agreement to establish the Vietnam-Japan Techno Park Complex at the Southern Hanoi Supporting Industries Park in February. This complex offers opportunities for Japanese and Vietnamese businesses to collaborate in producing next-generation, high-tech supporting industry products, such as electrical equipment and precision mechanical devices, to serve the aerospace industry.
To support Japanese businesses and investors at the Southern Hanoi Supporting Industries Park, the Government and the Hanoi Municipal People's Committee have introduced special mechanisms. Specifically, projects producing priority supporting industry products, such as electronics, mechanical engineering, and automotive components, are offered land leases for up to 70 years. Additionally, they are granted corporate income tax incentives for 15 years, with a 100% corporate income tax exemption during the first four years.
According to the Hanoi Municipal Department of Planning and Investment, in the first seven months of 2024, the city attracted 1.3 billion USD in FDI, a 65% increase compared to the same period in 2023. Specifically, 143 new projects were registered with a total capital of 1.1 billion USD, 102 projects saw capital increases amounting to 138 million USD and 118 foreign investors contributed capital or purchased shares, totalling 77 million USD.
The sector attracting the most investment was real estate, followed by manufacturing, trade, services, construction, and science and technology. Among the notable projects, the Lumi Hanoi apartment complex on Thang Long Boulevard in Nam Tu Liem District, invested by Capital Land Group (Singapore) with 662 million USD, stands out as one of the largest foreign investments registered in Vietnam since the beginning of 2024.
Seizing opportunities to accelerate growth
Director of Hanoi Promotion Agency Nguyen Anh Duong said the city is committed to providing the most favourable conditions to attract investment, especially FDI. In addition to the existing general incentives, the new Capital Law introduces additional preferential mechanisms and attractive policies for investors.
For example, businesses investing in sectors designated as "priority for attracting strategic investors" will benefit from a 10-year exemption from land and water surface lease fees, with a 50% reduction on the remaining lease period. Additionally, they will enjoy a 5% corporate income tax rate, with a 4-year exemption and a 50% reduction on the remaining tax for the following 9 years.
In 2024, Hanoi aims to attract approximately 3.15 billion USD in FDI, with projects involving land usage accounting for over 2.15 billion USD and trade and service projects around 1 billion USD. For 2025, the city plans to attract about 2.7 billion USD in FDI. To achieve these targets, Hanoi needs to further enhance its investment attraction efforts, as there are still barriers that cause hesitation among foreign investors.
During a meeting with Hanoi’s leaders, the President of the Asian Infrastructure Investment Bank (AIIB) Jin Liqun expressed the bank’s interest in exploring cooperation opportunities in the capital and readiness to become a reliable partner for a long-term collaboration. However, he also recommended that Hanoi should simplify administrative procedures to maximise cost efficiency and operational performance, and emphasised that projects should be well-designed, swiftly implemented, and completed on time.
Associate Professor Dr Tran Dinh Thien, former Director of the Vietnam Institute of Economics, suggested that amid the FDI shift to Southeast Asia, Hanoi needs to focus on training and developing a high-quality workforce to access advanced technology and meet the requirements of FDI businesses.
Leaders of ministries such as Finance, Planning and Investment, and Science and Technology also affirmed their commitment to actively cooperate with Hanoi to implement the 2024 Capital Law and develop specific mechanisms and policies to attract major investors.
Recently, the Hanoi Municipal People's Committee has directed relevant departments and units to propose and organise efforts to attract investors for projects listed in the first phase of the Hanoi Investment Attraction Project List for 2024. This includes reviewing and preparing conditions related to land, infrastructure, and labour, to be ready for welcoming large investors and corporations. The city also emphasises upgrading industrial infrastructure to enhance competitive advantages for medium and long-term investment attraction.
The city has instructed agencies and units to strengthen the capacity of implementing officials, focusing on administrative reform and improving the administrative apparatus to better serve citizens and businesses. It is important to handle investment and business procedures promptly following legal regulations and avoid imposing inappropriate requirements or conditions during administrative procedures.
Hanoi is preparing to hold a dialogue conference with foreign investors, one of six specialised business dialogue meetings scheduled for 2024. This aims to promptly listen to and address challenges faced by FDI businesses.
Chairman of Hanoi Municipal People’s Committee Tran Sy Thanh emphasised that the city will focus on refining mechanisms and policies for the capital’s development. They will expedite the implementation of the amended Capital Law and develop specific policies related to urban governance, decentralisation, talent attraction, and high-quality human resource development. This approach aims to not only improve management and operational efficiency but also create favourable conditions for attracting investment resources, and promoting comprehensive and sustainable development.
See also
Bac Ninh leads nation in FDI attraction in nine months
18:05 | 09/10/2024 FDI
Bến Tre to unlock potential for investment attraction
10:10 | 07/10/2024 FDI
Foreign capital influx permeates southern real estate market
10:06 | 06/10/2024 FDI
Foreign investment surpasses 24.78 billion USD in nine months
09:27 | 04/10/2024 FDI
Brescia province's business community interested in Vietnamese market
09:16 | 04/10/2024 FDI
Long Son Petrochemicals complex starts commercial operation
15:14 | 03/10/2024 FDI
See more news
Deli Group breaks ground for 270 million USD stationery factory in Hai Duong
18:27 | 29/09/2024 FDI
SpaceX plans to invest US$15 billion in Vietnam
09:23 | 26/09/2024 FDI
Andre De Jong appointed as managing director of Bosch Vietnam
17:24 | 25/09/2024 FDI
Vietnam remains bright spot in foreign investment attraction in ASEAN
15:26 | 20/09/2024 FDI
PM hosts Japanese multi-industry firm's chairman
15:07 | 12/09/2024 FDI
Deputy PM pledges to facilitate operations of Hong Kong groups
16:13 | 10/09/2024 FDI
Việt Nam attracts nearly US$21 billion in FDI in eight months
15:16 | 09/09/2024 FDI
Efforts underway in Bắc Giang to create more favourable business environment
10:24 | 06/09/2024 FDI
Japanese investors pour over 1.3 billion USD into Ha Nam
14:49 | 03/09/2024 FDI
Dong Nai province’s foreign investment surges by 34%
17:59 | 01/09/2024 FDI
Ca Mau Province accelerates public investment disbursement
17:29 | 11/10/2024 Investment
East Asian Summit calls for cooperation to enhance mutual understanding
17:22 | 11/10/2024 Cooperation
PM attends 12th ASEAN-US Summit in Vientiane
17:18 | 11/10/2024 News and Events
Vietnam ready to turn off 2G service
16:34 | 11/10/2024 Science - Technology
WTO highlights Vietnam’s role in restructuring of global supply chains
14:37 | 11/10/2024 Trade
Multimedia
Hanoi Liberation: Important milestones
15:39 | 09/10/2024 Infographic
Vietnam makes active contributions to ASEAN development
09:15 | 09/10/2024 Infographic
France becomes Vietnam's 8th Comprehensive Strategic Partner
08:57 | 08/10/2024 Cooperation
Two historic battles of the capital’s armed force and people
09:53 | 07/10/2024 Infographic
Numerous cultural, tourism activities to welcome 70th Hanoi’s Liberation Day
10:43 | 05/10/2024 Infographic
Multiple laws under review for revisions
08:55 | 11/10/2024 Policy
Top leader attends Hà Nội's Liberation Day anniversary, highlights potential to drive growth
20:31 | 10/10/2024 Policy
Vietnam, Cuba bolster defence cooperation
16:36 | 10/10/2024 Policy
NA urges capital market revitalisation
20:15 | 09/10/2024 Policy
MoIT approves price framework to purchase electricity from Laos
08:38 | 11/10/2024 Energy
Foreign investors interested in green development, semiconductor industry in Vietnam
17:34 | 09/10/2024 Industry
Việt Nam seeks Japan's cooperation in hydrogen energy development
14:33 | 09/10/2024 Energy
Việt Nam's industrial production saw positive growth in nine months
14:20 | 08/10/2024 Industry
Ca Mau Province accelerates public investment disbursement
17:29 | 11/10/2024 Investment
HCM City approves US$9b Cần Giờ coastal urban development project
10:04 | 11/10/2024 Investment
Bac Ninh leads nation in FDI attraction in nine months
18:05 | 09/10/2024 FDI
Total social investment capital disbursed in nine months up 6.8%: GSO
14:41 | 08/10/2024 Investment
PM urges WB to provide concessional loans for key infrastructure projects
08:52 | 11/10/2024 Finance-Banking
DIC Corp completes buyback of $18.6 million in bonds
09:25 | 10/10/2024 Finance-Banking
Update on exclusive partnership between Manulife Vietnam and Techcombank
14:52 | 08/10/2024 Finance-Banking
VPBank, LOTTE C&F cooperate to provide financial service with “Buy now pay later” product
09:31 | 07/10/2024 Finance-Banking
Leveraging power of community to protect unique Yok Đôn ecosystem
14:49 | 09/10/2024 Environment
Little cooperation from zoo operators in mass deaths of tigers, lions, panther: authorities
09:18 | 08/10/2024 Environment
Issuing “passports” for forest visits
22:12 | 05/10/2024 Environment
Vietnam’s forestry sector leads in achieving net negative emissions
09:16 | 04/10/2024 Environment
Vietnam ready to turn off 2G service
16:34 | 11/10/2024 Science - Technology
Digital infrastructure strategy approved
09:50 | 11/10/2024 Science - Technology
Vietnam, India seek further development through sci-tech cooperation
09:46 | 11/10/2024 Science - Technology
Digital transformation creates new momentum for national development
16:35 | 10/10/2024 Science - Technology
Implementation of Red River Delta Region Planning approved
09:00 | 11/10/2024 Society
Nine Vietnamese universities make global rankings 2025
17:05 | 10/10/2024 Society
Hanoi develops as dynamic, pioneering, innovation city: Int’l media
11:33 | 10/10/2024 Metropolis
Hà Nội's remarkable transformation after 20 years
11:25 | 10/10/2024 Metropolis
Fifteen Vietnamese banks named in the global top 500 banking brands
16:24 | 10/10/2024 Vietnamese Brands
Việt Nam's second rice brand enters picky Japanese market
09:03 | 10/10/2024 Vietnamese Brands
Ben Tre to export first batch of fresh coconuts to China in October
09:41 | 08/10/2024 Vietnamese Brands
Mê Linh harnesses the potential of OCOP products
09:36 | 07/10/2024 Vietnamese Brands
Việt Nam promotes location opportunities at Busan International Film Festival
09:41 | 11/10/2024 Culture
Hanoi – World’s Leading Culinary City Destination
16:15 | 10/10/2024 Lifestyle
Pride and patriotism: the ‘expat’ view
09:19 | 10/10/2024 Culture
German Film Awards winner opens Kinofest in Hà Nội
09:16 | 10/10/2024 Culture
Hà Nội develops tour to explore Thường Tín’s craft villages
09:32 | 11/10/2024 Tourism
Vietnam Airlines promotes tourism in Germany
09:27 | 10/10/2024 Tourism
Việt Nam sees surge of tourists from visa-exempt countries in 2024
09:46 | 08/10/2024 Tourism
Cultural tourism requires more investment to become cultural industry
09:24 | 08/10/2024 Tourism