Vietnam’s capital Hanoi has drawn more than US$5.3 billion in foreign direct investment (FDI) projects in the first half of 2019, establishing itself as the country’s top FDI destination this year.
Representing 38.4 percent of Vietnam’s total FDI inflow in the first quarter of 2019, Hanoi has outpaced the country’s financial hub, Ho Chi Minh City, by US$1.57 billion.
Last year, the economic growth of the capital nearly doubled that of a decade ago, earning a GDP per capita of US$5,134 – a three-fold increase from the figure in 2008. This contributed 16.46 percent to Vietnam’s total GDP, while accounting for only one percent of the country’s total area and 8.38 percent of the population.
FDI, however, has not always been so bright for Hanoi. Only a decade ago, FDI into the capital plummeted when it merged with its neighbor, Ha Tay province. The city’s leaders had to invest most of their time into considering and approving planning schemes for the new region.
That work has begun to pay off in the past couple of years. Local authorities have committed to improving the investment environment in Hanoi, and tremendous strides have been made to support business operations within the city and in improving the region’s Provincial Competitiveness Index (PCI).
This is an excerpt from an article appearing in Vietnam Briefing, a subsidiary of Dezan Shira & Associates. For the latest economic, regulatory and business news from Vietnam, visit vietnam-briefing.com.
