Hanoi gathers favorable conditions to become headquarters of world’s leading corporations, according to a business executive.

Chairman of Hanoi People’s Committee Nguyen Duc Chung is in contact with a Chinese corporation with a view to bringing the Iphone production line to Vietnam's capital city, according to Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI). 

In the context of the US – China trade friction, there is a wave of investors moving from China to Vietnam, Loc said in a meeting on November 22. 

According to Loc, the northern region, especially Hanoi, is a top destination for investors, and the relocation of a Iphone factory from China to Vietnam is part of this wave. 

Loc added that Hanoi could become headquarters of the world’s leading corporations. 

As a new investment wave is coming, the VCCI chairman expected Hanoi to continue improving the business environment, in particular the high-tech sector. 

One of the main reasons for Hanoi being an ideal destination includes positive impacts from the ongoing administrative reform, favorable weather conditions and in close distance to the Chinese market, Loc continued. 

Hanoi needs more improvements

At the meeting, Nguyen Dinh Cung, director of the Central Institute for Economic Management (CIEM), said that Hanoi has to be proactive in attracting capital inflow. 

Nevertheless, the city should speed up the administrative process, which remains slow compared to that of Ho Chi Minh City. 

Cung stressed it is important for Hanoi to utilize its advantages as an economic hub in the region and creating spillover effects to other provinces. 

According to the Hanoi’s mayor, FDI is an important source of capital for social investment, accounting for 10 - 15% on average of social investment and contributing to the city's high GRDP growth over the past years (averaging 7.11% annually).

Among 59 cities and provinces having received foreign investment, Hanoi attracted the largest portion of registered capital with US$6.15 billion in the first ten months of 2018, or 22% of total investment, followed by Ho Chi Minh City with US$4.6 billion or 16.5% of the total investment, and Ba Ria - Vung Tau with US$2.4 billion, accounting for 8.8% of total investment.  

The biggest-ticket projects in the first ten months include the smart city project in Dong Anh district, Hanoi with total investment capital of US$4.138 billion and the US$600-million Lotte Mall Hanoi project that embraces a hotel, apartment, office, and trade center complex.

Hanoitimes