Hanoi Authority for Planning and Investment’s deputy director Nguyen Van Tu sheds some light on the issue.

How does Hanoi appeal to foreign investors?

This year, the capital city’s foreign direct investment has reflected upbeat figures after 2009-2010’s stagnant period. FDI into Hanoi surpassed $1 billion in the year ending September and is expected to hit $1.5 billion for the whole year. Disbursed capital was an estimated $611 million in which that of foreign partners was $430 million.

The global economic picture is forecast to get better in 2012. Besides, the prime minister just green-lighted diverse planning schemes for construction and assorted economic sectors as well as the city’s socio-economic development strategy for 2011-2020. We will attemp to lure at least $2 billion and report disbursed capital of around $1 billion each year in the period.

Hanoi struggled to entice FDI during 2009-2010. Why?

Administrative area expansion hurt our efforts to lure FDI. Principally, the capital city must finalise planning work right in 2006 before Hanoi was merged with former Ha Tay province. However, the planning in fact got underway after the merger. That was why the city’s economic development and FDI attraction lacked a clear footing.

As an advisory body to Hanoi People’s Committee, how the Hanoi Authority for Planning and Investment will outline FDI attraction plan to ensure quality while matching the city’s socioeconomic development orientations for 2011-2020?

Most importantly, later this year or in early 2012 the authority will strive to complete FDI attraction planning and strategy and clearly define the city’s investment orientations. We put emphasis on making construction, then transport, electricity, land and technical infrastructure planning so as to achieve the goal of investment fields all having clear models and steps to evolve.

City authorities need to pay due heed to land acquisition and compensation which often scare investors away. Another important task is ameliorating transport infrastructure and bringing human resources quality on par with regional and world standards.

How has Hanoi interpreted the prime minister’s instruction on FDI project reviews?

We are afoot with closely reviewing all FDI projects in Hanoi. In the coming period, we will air our assessments relative to transfer pricing and capital mobilisation of the city’s FDI projects in property field. As of September 2011, the city took back investment certifications of seven FDI projects and turned a FDI project into a local one.