Hanoi – the capital of Socialist Republic of Vietnam, is the Political – Economic – Cultural – Scientific and Technological center of the whole country. Hanoi is located in the center of the Northern Delta with a population 2.9 million people, and an area 920.97 km2. Hanoi is an ancient city which had been established and developed for almost 1,000 years since 1010. There are many relics of the past, including well-known landscapes in Hanoi such as the Temple of Literature (Quoc Tu Giam), the One – Pillar Pagoda, Sword Lake, Hanoi West Lake, History Museum, Flag Pole and Ancient city. There are 9 urban districts and 5 rural districts in Hanoi. Ba Dinh District is the national Political – Administration Center, Dong Da – Gia Lam – Dong Anh District are the Industrial Centers. Hanoi’ geographical location is very convenient. It is the traffic clue of the road way, water way, rail way and air way from Hanoi to other provinces of Vietnam as well as to other countries in region and over the world. Hanoi is becoming the important economic and international transaction center of the whole country. Hanoi city is keeping the high pace of economic growth, stable political-social security. The average GDP growth was 11.6% annually during 1991-2002, which reached to 10.2% yearly in 2001 and 2002 and to 10.5% in 2003.
The living standard of the people increases 3.5 times in comparison with 1990. There are 18,000 enterprises in non – state sectors.
Upon the promulgation, the Law on Foreign investment in Vietnam on Dec 1987, and together with the realization of a series the Open-door Economy Policies, 42 nations and territories and hundreds of foreign groups and companies have entered Hanoi to look for investment and business opportunities. This market is estimated to be of great potential by foreign experts. As to the end of 2003, in Hanoi, there are 601 projects which have been granted investment licenses with the total investment capital of USD 9.1 billion. In there includes: 345 JV projects, 227 one – hundred percent foreign investment projects, 29 business co-operation projects. Five Industrial Zone have been established (Noi Bai – Soc Son Industrial Zone, Sai Dong B Industrial Zone, Thang Long Industrial Zone, Taiwan Industrial Zone) with the total area of 784 ha and the investment capital of USD 250 million for technical infrastructure. The foreign direct investment capital makes an important contribution to the economic restructuring, industrialization, modernization of Hanoi city tour and fast contribute economy structure: Industry – Service – Agriculture. In the last 10 years, Hanoi had attracted USD 712 billion for developing technical and social infrastructure system, environmental protection and social welfare. The total social investment increases 15 % – 17% annually.
To undertake and use the foreign direct investment capital effectively, Hanoi has created an attractive investment environment with the potentials and convenient conditions as follows:
- Hanoi is the capital of the Socialist Republic of Vietnam – the political center, where the offices of Vietnam leader are located such as: party Central Committee, Government, Ministries… Hanoi has a stable political basis, the economic policy is open, flexible, political basis, the political security and social order are guaranteed. Hanoi is located in a good place, the Economic and International transaction center of the whole country.
- Hanoi is gathered with the intellectual human resources which is accounted for 62 % of the whole country science and management cadres who gained university certificate, professors, masters and are living and working in Hanoi.
- Hanoi citizens’ standards of culture and working skills are rather high. They are able the modern technology and management in very short time. The labor cost in Hanoi is reasonable.
- The Hanoi market potential is big. The Hanoi market also influences to other northern provinces all country, south of China, Laos…
- The electricity and water supply to enterprises are good and stable.
- The administration procedures to grant the Investment License for projects (especially the industrial project) are executed easily, conveniently and fast
- The expenses such as social services, property and land rental, water and electricity are lower than other trade centers in Vietnam (especially the land rental is 25% off as compared with the price in the past).
- Taxes are in favor, especially the Industrial projects and specially encouraging investment projects.
To become an industrial city, a modern capital which can be compared with other capitals and large cities in region up to the year 2010, Hanoi Vietnam authority has issued the General Master Plan to develop the Capital Economy and Society to the year 2010, use to maximum the local potential and make good use of foreign capital resources such as FDI, ODA… to develop the City basic economic standards from 2 to 2.5 times until 2010. It is hoped that the Hanoi future achievements and results are helped importantly from the foreign investors.
