Hanoi targets US$1.3 billion in FDI
Hanoi has set a goal of attracting US$1.3 billion in foreign direct investment (FDI) in 2014, despite failing to meet its annual FDI targets over the past two years.
The capital city is also aiming to ensure around US$1billion of the targeted FDI is disbursed this year.
According to the municipal People's Committee, the city hopes to license 250 new projects requiring a total capital investment of US$700 million, while permitting 130 ongoing projects to increase their investments by a total of US$600 million.
Deputy director of the Municipal Department of Planning and Investment Nguyen Manh Quyen noted that the city's FDI target this year is achievable compared with the targets of the past two years.
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He said the city has drawn up measures to foster a more transparent investment climate and approved a list of priority projects, including infrastructure-related projects. In addition, another programme currently under development aims to attract higher investments from Japan.
Last year, the city attracted registered FDI of over US$1.13 billion, or about 87.2% of the annual target. The FDI disbursement, meanwhile, was US$872 million, which was 97% of the target.
In a report to the Ministry of Planning and Investment, committee vice chairman Nguyen Van Suu attributed the poor performance to negative impact from the global and domestic economies, complex procedures and an inadequate supply of land for investors hoping to implement large-scale projects in the city.
The city's scheme adjustments and frozen real estate market also prompted delays by investors and increased the time spent on completing administrative procedures, Suu added.
Hanoi currently ranks third in the country for the amount of FDI invested in the provinces and cities nationwide.
The Foreign Investment Agency's statistics showed that, by the end of last year, the city had 2,677 foreign-investor-led projects with total registered capital of more than US$22.27 billion.