Illustrative image (Source: VNA) Statistics from the Hanoi Statistics Office, in September,the capital city granted licences to three FDI projects worth 5.3 million USD,pushing the total FDI value in the city in the first nine months to 927 millionUSD, including 162.6 million USD on 246 new projects and 492.4 million USDadded to 93 underway ones.
According to the municipal Department of Planning andInvestment, COVID-19 has posed adverse impacts on foreign investment in Hanoi,causing a drop in the number of capital.
Meanwhile, difficulties have been seen in the transport ofgoods from other countries to Vietnam, while many businesses in industrialparks and clusters have faced obstacles in carrying labourers from theirresidence to workplace or applying the “three-on-site” and “one route – two destinations”models to maintain their operations.
At the same time, FDI firms have suffered impacts fromimmigration policies on foreign experts, the department noted.
Since the beginning of the year, Hanoi has seen thesuspension of operation of about 200 FDI companies, mostly small and mediumones.
However, many large forms have still shown effectiveoperations, while many foreign investors have increased investment in projectsin the city.
As part of efforts to deal with difficulties facinginvestors and creating best investment environment for FDI businesses, alongwith preferential policies from the Government, Hanoi has rolled out variousmeasures to help them overcome the pandemic.
Besides solutions to ensure safety against the pandemic, thedepartment has given advice to the city People’s Committee on a number ofsolutions to assist FDI firms, including creating favourable conditions forthem in administrative procedures so that they can focus on designing theirproduction plans.
Alongside, the city has directed relevant sectors to takemeasures to deal with businesses’ difficulties in processing the procedure toreceive foreign experts, COVID-19 vaccination and testing, tax, and goodstransport.
In the remaining months of the year, the city willconcentrate on promoting economic recovery and development as well assupporting local firms.
The municipal People’s Committee has asked sectors andlocalities to immediately built their own recovery and development plans rightfrom October, while designing criteria of safe adaption to the pandemic andproposing mechanisms and measures to assist businesses.
Administrative procedures must be simplified to save cost,while online public services should be expanded to level three and four, thusgiving maximum support to enterprises, asked the committee.
The committee assigned the Department of Planning andInvestment to submit proposal on the organisation of a dialogue with localfirms to seek ways to deal with difficulties facing them, especially those causedby COVID-19 pandemic.
Meanwhile, the city plans to form four working groups todeal with difficulties facing businesses in different areas, while speeding upthe disbursement of investment in capital construction.
In order to attract more foreign investment and give bestconditions for FDI firms to operate in Vietnam and Hanoi in particular, Do AnhTuan, Director of the Hanoi Department of Planning and Investment said thattogether with cutting the number of administrative procedures and fostering coordinationin the field, the city will strengthen on-site investment promotion activitiesand assist investors in all stages from business registering to projectimplementing and settling arising problems.
Hanoi will increase incentives for investors in prioritisedsectors, including technology and supporting industry.
Experts held that COVID-19 has posed impacts to Vietnam andHanoi in particular, but it also created opportunities in foreign investment.
Solutions given by the Government, ministries and sectors andthe city have shown efficiency in encouraging economic recovery in the city, they said./.
VNA
