Marko Walde, Chief Representative, Delegation of German Industry and Commerce Vietnam (GIC/AHK).Photo: GIC/AHK
We perceive the business and investment environment consisting of economic and non-economic factors and the results could be an increase in economic output and thereby economic growth. If we look at the economic results of Hanoi, we would say that 2019 will be a successful year of Hanoi with a number of positive developments and perspectives.
Hanoi expects 7.4 – 7.6% economic growth for 2019 and according to the Ministry of Planning and Investment, this city attracted more than US$5.3 billion in foreign direct investment projects in the first half of 2019, establishing itself as the country’s top FDI destination this year.
Hanoi encourages and promotes innovation and start-ups as well as shows its commitment to become a smart city by implementing green and clean energy as well as applying IT and high technology, as a project of smart city in the north of Hanoi which was kicked off lately is an example for the engagement of Hanoi.
At the moment, there are 71 German FDI projects in Hanoi with the total investment of US$113 million. We have one of our biggest German investors in Hanoi, namely B.Braun with two manufacturing plants in Hanoi producing intravenous infusion solutions, dialysis concentrates and medical devices.
We hope that in the next years, with the improvement of Hanoi’s business environment as well as with a wide range of free trade agreements such as CPTPP (the Comprehensive and Progressive Agreement for Trans-Pacific Partnership) as well as the FTA between the EU and Vietnam, the economic growth of Hanoi will continue and there will be more German investors coming to the city as well.
From our point of view, the most essential factors for the long run are creating business confidence between international investors in Hanoi, having a stable, transparent and reliable legal framework and economic conditions to support local and international businesses, improving general infrastructure as well as conducting a suitable platform for direct experience exchanges and direct dialogue between authorities and businesses as well as between local and international ones.
Moreover, developing a practical oriented dual vocational training and education projects in order to gain high skilled labor force as well as having support programs to develop a strong supporting industries in Hanoi should create competitive advantages of Hanoi and therefore could help to attract more long-term and high tech international and German investors.
JETRO: Living environment should be further improved
Takeo NAKAJIMA – Chief Representative of JETRO Hanoi. Photo: JETRO
Japanese companies invested in 1,086 projects totaling US$10.6 billion in Hanoi as of end-2018. Hanoi accounts for some 27% of total Japanese investment in Vietnam in terms of number of projects, indicating its importance. Japanese firms have poured money into a wide range of sectors, from manufacturing to whole sale and retail sale and IT.
In March this year, the Hanoi People’s Committee in coordination with the Japanese Embassy held a conference to promote investment and tourism in Hanoi. At the event, the city’s authorities welcomed feedback from Japanese companies.
With the city’s efforts, Hanoi’s Provincial Competitiveness Index (PCI) has much improved, from the 13th ranking in 2017 to 9 in 2018.
Many Japanese businesses have become aware of the attractiveness of the investment environment of Vietnam in general and Hanoi in particular. However, many of them perceive risks from complex administrative procedures and non-transparent law enforcement in the country.
In addition, the living environment should be further improved by tackling issues such as air and water pollution, and traffic congestion. FDI would peak and stall if negative effects from the urbanization and industrialization process. In this field, foreign companies, Japanese ones included, have expertise and Hanoi city can ask for their support. This is also a factor behind the city’s appeal, thus we expect Hanoi’s authorities to focus on dealing with these issues.
Ericsson: Accelerate the release of 4G & 5G spectrum
Denis Brunetti – President of Ericsson Vietnam, Myanmar, Cambodia and Laos. Photo: Ericsson
Hanoi and Vietnam in general is increasingly focusing on the next wave of socio-economic development and inclusive GDP growth being driven by Science, Technology and Innovation, enabled by 4G IoT and soon 5G network digital infrastructure.
We congratulate and applaud the government for their visionary and strategic focus on the attraction of high tech FDI, with specific and targeted investment in the Environment, Industry Efficiency and Innovation, all of which will continue to accelerate as Hanoi continues to expand and upgrade its critical national digital infrastructure, namely 4G networks. VNPT Group, Viettel, Mobifone and Vietnamobile are all contributing to this success through their 4G network expansions and active planning towards 5G in 2020+.
Investment in the National Innovation Center (NIC) in Hoa Lac is also an important initiative driven by the government, and Ericsson congratulates the Hanoi People’s committee, MPI and other government agencies and Vietnamese enterprises for their efforts in building a startup innovation ecosystem that will ultimately create the IoT (Internet of Things) and Industry 4.0 use cases that will drive the next wave of socio-economic development in Vietnam as more industries digitally transform and become more productive and efficient.
I believe the government is already adequately addressing many of the key requirements in attracting additional high-tech investment, especially in terms of building the required 4G Mobile Broadband networks, as well as investing in and encouraging Startup Innovation and increased focus on Education and Training from a Data Science and STEM (Science, Technology, Engineering & Mathematics) stand point. Policies, procedures, legal frameworks and regulations are also being updated to further improve Vietnam’s chance of taking full advantage of the 4th Industrial Revolution.
The only additional recommendation I would share is to accelerate the release of valuable 4G & 5G spectrum, as well as 5G licenses for the operators. As we’re witnessing around the world, countries that have recently launched 5G networks are already experiencing the added social, economic and environmental benefits associated with having Industries, such as manufacturing, transport and agriculture, connected to the Internet.
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