| The Hanoi Department of Planning and Investment said that Hanoi received 340 foreign direct investment (FDI) projects in 2009 with US$525 million in new and supplementary investment capital, which was 10 percent of that in 2008. Capital invested in the year was US$650 million accounting fofr 44 percent of what was in 2008. |
When compared with 2008, the number of FDI projects with new and supplementary capital increased six percent, from 320 to 340. However, the amount of registered capital reduced sharply from US$5,009 million to US$525 million. The Republic of Korea and China were the biggest investors in the city in 2009.
The Department also said that foreign capital invested directly in 2009 was US$650 million or 44 percent of that in 2008 (US$1,450 million).
Nguyen Van Tu, the deputy director of the Hanoi Department of Planning and Investment, said that the real estate and information service sectors caught much FDI in 2009. The shift is because the global financial downturn has mostly hurt trade (including exports) and industry and investors were not very interested in these fields. However, the real estate market bustled, in part due to the increased demand and the expansion of Hanoi in August 2008.
Nguyen Van Tu said that foreign investors are concerned about the telecommunications service sector in Hanoi, which has grown rapidly, steadily and sustainably for years now. They also see that despite the rapid growth, there is much room for them in this sector.
The Department attributed the sharp decline in FDI in Hanoi in 2009 to the world financial crisis and insufficient locations for foreign investment projects. Following a Prime Ministerial direction, the Hanoi Peoples Committee is examining planning and investment projects in the city and is cooperating with foreign consultants to adjust the city overall planning.
To attract more FDI in 2010, the city has devised five key solutions. These are to (1) reform administration, (2) build competition capacity, (3) build capacity in infrastructure and other services, (4) pay more attention to ground clearance for project development and resettlement and (5) improve human resources.
Nguyen Van Tu predicted that FDI this year will look better than in 2009 but still worse than in 2007-2008 due to the economic recession, which has not yet come to an end. He also said that much FDI will certainly go to the real estate sector this year, plus industry, trade, supermarkets and entertainment facilities.
