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Ha Noi lures foreign investment

Update: September, 24/2012 - 10:27

 

Workers of South Korea's Doo Jung Co produce make-up in the Phu Nghia Industrial Zone in Ha Noi. — VNA/VNS Photo Danh Lam
HA NOI  (VNS)— Ha Noi has attracted more than 230 foreign direct investment projects since the beginning of this year, with a total capital of US$919 million, according to the city's Department of Statistics.

The department said the result was limited as many projects had small and medium investment capital of below $1 million each. Lack of land for production was one of the main reasons attributed to hampering investors.

It has been reported that new industrial parks in the capital city were dealing with difficulties in site clearance and compensation, meaning they did not have available clear areas to lure investors.

About VND146 trillion ($7 billion) has been invested in the city's development projects including capital construction, fixed assets and more, accounting for an increase of 12.9 per cent compared with the same period last year.

Domestic economic experts said that although the State had issued many methods and policies to help enterprises overcome difficulties and approach the banks' with reasonable interest rates, many non-State enterprises had no chance to access it and were still suffering high interest rates.

In the third quarter of this year, the investment situation is expected to improve after the Government recently approved funds for projects and construction works.

The city's Department of Statistics also said that the capital was also expected to fetch $872 million from exports in September, marking a slight decrease of 0.3 per cent over the previous month.

The latest bring the city's export turnover for the first nine months of the year up to $7.52 billion, marking a 5.3 per cent year-on-year gain, while the city imported $17.59 billion worth of goods during the period.

"Despite experiencing slower pace compared to previous years, export growth remains encouraging in difficult economic context," said deputy head of the office Do Ngoc Khai.

During the January-September period, China, the US and Japan were the city's biggest trade partners, accounting for 17 per cent, 13 per cent and 12 per cent of total export value respectively.

Export items enjoying the highest value growth included handicrafts (up 32 per cent), computer accessories and peripheral units (up 31 per cent), while electronics also made gains (up 22 per cent).

Meanwhile, machineries, materials and machinery equipment saw a reduction in import turnover. Machinery equipment dropped by 20 per cent while machineries and materials fell by 3 per cent.

"We are implementing a series of measures to overcome the difficulties faced by local enterprises," Khai said.

Khai outlined frequent dialogues between authorities and businesses, financial assistance such as favourable loan rates and the reduction of land rental fee and corporate income tax as some of the solutions they were looking at.

With these efforts, Khai said, the city's export would hopefully make a full recovery in the latter months of the year with key export items making strong gains. — VNS

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