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Hanoi seeks further $1.3 billion in FDI
Publication Date : 14-10-2013
The capital city of Vietnam will ramp up its efforts to create resources for investors, in an effort to attract US$1.3 billion in foreign direct investment (FDI) by the end of the year, according to the municipal People's Committee.
In addition to simplifying administrative procedures for greater investment, the city will also foster a more transparent investment climate, the committee said.
The city is reportedly compiling a list of prioritised projects calling for investment from now until 2015, with another programme in the pipeline to attract more attention from Japanese investors.
According to the committee's findings, the city has attracted a total registered FDI of $768.2 million so far this year, accounting for only 59 per cent of the target for 2013.
Most projects were found to be small and medium-sized, resulting in a 16.4 per cent year-on-year decrease in registered capital despite a 7 per cent increase in number of projects.
The committee ascribed the substandard performance to negative influences from the global and regional economy and complex procedures.
The report also said inadequate "fresh land" for investors wanting to implement large-scale projects in the city.
Officials are hoping the new measures will help draw $1.45 billion in FDI in 2014, with $950 million expected from new projects and the remainder from existing projects increasing their capital contributions.
The move follows a project signed off by the City last month with Japan's Forval Corporation, expected to bring in more investment from Japan.
The project aimed to spotlight key areas for Japanese investment and incentives for investors, including access to land, administrative procedure reform and infrastructure development.
Hanoi now ranks second in the country for the amount of FDI invested in provinces and cities nationwide.
The Foreign Investment Agency's statistics revealed that as of September, the city is home to over 2,580 foreign invested projects with a total registered capital of $22 billion.