HANOI: With an open investment environment, modern infrastructure and an abundant, skilled workforce, Hanoi has been positioning itself as a promising destination for foreign investors.

As investment capital around the world goes into a downward spiral due to the ongoing significant restructuring of global trade, investors are still drawn to Vietnam and particularly Hanoi.

The capital city is Vietnam’s largest financial centre. It has the second largest business community and is where the majority of research institutes, universities, hospitals and banks are headquartered.

These elements give Hanoi unique strengths in international cooperation based on innovations and technological advancements.

Hanoi’s population accounts for 8.1% of the country’s total, of which 51.7% are young people.

Trained labourers accounted for over 73% of the city’s workforce in 2023.

One major driving force for the development of the capital is the abundant financial resources.

Total state budget revenue from 2011 to 2023 increased by 10.65% on average every year, while total social development investment increased by 9.47%, annually.

There has been a major shift in the structure of investments into social development, with investments from the state decreasing from 51% in 2010 to about 34.3% in 2023, while the non-state sector rapidly increased from 35.3% to approximately 59%.

Cumulatively, by 2023, Hanoi has attracted 4,500 foreign direct investment (FDI) projects, with a total registered investment capital of over US$33bil, up 70.5% from 2022.

This brought the capital into the top five cities with the highest FDI in the country.

In the first nine months of this year, US$1.5bil in FDI was poured into Hanoi.

Many corporations from the United States, South Korea, Japan, Singapore and Europe have actively been making investments into the city.

Apart from transferring new technology, training the local workforce and contributing to the global value chains, each year FDI enterprises contribute 10% of the city’s budget revenue, 11% of the city’s workforce and 11% of its social development capital.

Speaking at the meeting with Prime Minister Pham Minh Chinh on Aug 17, Tran Sy Thanh, chair of the Hanoi People’s Committee said the capital aimed to attract a total of US$3.13bil in FDI this year.

“The confidence of international investors in Hanoi’s investment environment is evidence of the strong reforms in management, business environment improvement and investment promotion by the city,” he said.

 - ANN