Beijing, China: US and Chinese firms have signed deals worth more than US$250 billion on the side-lines of US President Donald Trump’s state visit to Beijing; and President Xi Jinping revealed the figure after he witnessed the signing of the deals alongside President Trump.
According to Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), Nguyen Duc Chung, Chairman of Hanoi People’s Committee is currently in discussion with Chinese corporations with the intention of diverting the entire iPhone production line to Hanoi. This is in view that the ongoing trade war has pushed investors from China to Vietnam in order to escape rising tariffs, with Hanoi rising up as the top location for investors as well as a potential production headquarters for global corporations.
Loc has also further elaborated that reasons for Hanoi being an ideal destination includes the positive impacts that the region has gained from administrative reforms, favourable weather conditions and its proximity to the Chinese market.
However, in order to feed rising demands, Hanoi has to continue improving its business environment, especially for the high-technology sector. According to Nguyen Dinh Cung, Director of the Central Institute for Economic Management (CIEM), this includes adopting a more proactive approach in attracting capital flows, speeding up administrative processes as well as utilising its advantages as a regional economic hub to create spill over effects to other provinces
According to Hanoi’s mayor, FDI is an important source of capital for social investment and it attributes to an average of 10 to 15 percent of the total social investment in the region. This has allowed FDI alone to contribute to the city’s high GRDP growth over the past few years which averages at 7.11 percent annually.
Among the 59 cities and provinces that has received foreign investment, Hanoi has also attracted the largest amount of registered capital with US$6.15 billion in the first ten months of 2018. This is equivalent to 22 percent of total investment. Ho Chi Minh City follows behind with US$4.6 billion or 16.5 percent of the total investment, and Ba Ria – Vung Tau with US$2.4 billion, accounting for 8.8 percent of total investment.
The highest grossing projects in the first ten months of 2018 include the smart city project in Dong Anh district, Hanoi with total investment capital worth US$4.138 billion and the US$600 million Lotte Mall Hanoi project that encompasses a hotel, apartment, office, and trade centre complex.
WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!