At present, Japan is one of the strategic investors of great importance of Hanoi as it has pumped in 4.5 billion USD, accounting for 21.6 percent of total investment in the capital.— File Photo

HA NOI (Biz Hub)— An agreement to promote a new wave of investment from Japan was signed on Monday.

The agreement entitled Enhance foreign direct investment from Japan to Ha Noi in the 2013-25 period aims to contribute to the city's socio-economic development plan in the 2011-15 period.

The project also points out the key industries for attracting Japanese investments and measures to attract further FDI, such as access to land, administrative procedure reform and infrastructure development.

Ranking declines

Meanwhile, Ha Noi has been urged to improve its investment climate after it was reported that it had declined 15 grades in the ranking of the provincial competitiveness index (PCI).

According to the Business Development Institute, Ha Noi's PCI slid from 36th place in 2011 to the 51st out of 63 provinces and cities in the country in 2012.

The city's PCI has been declining since 2007, with the exception of a 7-grade rise in 2010, inferring that greater effort is needed to improve the investment climate.

Experts said many State management agencies do not work efficiently and their services still cause issues for enterprises, investors and local residents.

Specifically, the Department of Planning and Architecture's promulgation of planning for enterprises is slow and lacks co-ordination, and the Department of Finance has not created a plan to enhance the city's PCI.

According to Bui Ngoc Huyen, chairman of Xuan Kien Automobile Company, administrative reform for Ha Noi remains slow in comparison with HCM City and enterprises still face difficulties in securing loans.

Deputy director of the Business Development Institute Dang Duc Dam said that in order to improve the business climate for rapid and sustainable growth, Ha Noi should focus on three major solutions, including developing support industries, restructuring the State economic sector and developing a social housing programme with incentives for those providing public services.

Institute director Le Xuan Nghia said that simplifying administrative procedures is the most important task now, adding that transparency and discipline in enterprises and State management agencies would help. — VNS