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Non-State investment to drive Hanoi

Released at: 12:39, 06/06/2016

Non-State investment to drive Hanoi

Photo: Viet Tuan

People's Committee details projects calling for investment, with 80% of funds to come from non-State sources.

by Hung Nguyen

Hanoi has 95 projects calling for investment in the 2016-2020 period, Chairman of the Hanoi People’s Committee Nguyen Duc Chung told the Hanoi 2016 Investment and Development Cooperation conference on June 4.

Projects include 52 in the form of public-private partnerships with total investment of VND388 trillion ($17.31 billion) and 43 calling solely for non-State investment totaling VND372 trillion ($16.59 billion).

To further develop the city in the period, the capital needs to mobilize a total of VND2,500 trillion to VND2,600 trillion ($111.77 billion to $116.24 billion) in other investment, 20 per cent of which is to come from the State and 80 per cent from non-State and foreign sources. “This means that local and foreign enterprises will be the drivers of development in Hanoi,” said Mr. Hoang Trung Hai, Secretary of the Hanoi Party Committee.

Mr. Hoang Trung Hai addresses the conference.

The city is committed to creating an open transparent business environment to increase revenue and competitive advantage, according to Mr. Hai.

In the first five months of 2016 Hanoi led the country in terms of foreign direct investment (FDI), with $1.86 billion, or 24.6 per cent of the total nationwide, according to the Ministry of Planning and Investment.

In the plan for Hanoi’s development approved by the government, in the 2011-2015 period a target was set for annual growth to average 12-13 per cent, 11-12 per cent in 2016-2020, and 9-10 per cent in 2021-2030. GDP per capita in Hanoi reached $4,100 -$4,300 in 2015 and is targeted at $7,100-$7,500 by 2020 and $16,000-$17,000 by 2030 in real terms.

In 2015 Hanoi’s gross regional product (GRDP) increased 9.24 per cent, to $27.6 billion; the highest increase in four years, according to the Hanoi People’s Committee, and per capita income was estimated at $3,600, an increase of 1.8-fold against 2010.

In the 2011-2015 period, average GRDP was 9.23 per cent; 1.58 per cent higher than the national average. The services industry contributed 54 per cent, industry and construction 41.5 per cent, and agriculture 4.5 per cent.

In Hanoi’s small and medium-sized enterprises (SMEs) development plan in the 2016-2020 period, signed earlier this year, the city expects to increase the number of SMEs by 9 to 10 per cent each year, creating about 1 million jobs. Export turnover from SMEs is to account for 20 per cent of the city’s total, and by 2020 there are to be 700 enterprises in support industries.

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