Capital targets $1.3b in FDI

Thursday, Jan 09, 2014 08:22

An assemnly line at Sumi-Hanel Wiring System Company in Ha Noi. The city targets to attract US$1.3 billion of FDI this year. — VNA/VNS Photo Huy Hoang

HA NOI (Biz Hub) — Ha Noi 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 $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 Ha Noi 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.

He said the city had 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 $1.13 billion, or about 87.2 per cent of the annual target. The FDI disbursement, meanwhile, was $872 million, which was 97 per cent 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 influences from the global and domestic economy, 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.

Ha Noi 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 a total registered capital of more than $22.27 billion. — VNS

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