SOME EFFECTIVE MEASURES TO BE TAKEN BY HANOI CITY TO CREATE AN ATTRACTIVE INVESTMENT ENVIRONMENT

1)     To upgrade the quality and efficiency of the foreign investment promotion:

•  Change of investment promotion from negative to positive, leading investors to the direction for social and economic development in Hanoi city, thus facilitating a sustainable economy.

• Upgrade the quality of promotion materials, to use web site for marketing the projects calling for foreign investment and introducing policies to encourage foreign investors.

•  Publish news papers, magazines, guide books, CD-ROM, video tapes, pictures; use them for investment promotion and introduction of Hanoi's potential.

•  Take initiative in cooperation with the Ministry for Planning and Investment, central and international agencies to organize forums on investment promotion in Vietnam and/or abroad, in financially potential countries and/or regions.

SOME EFFECTIVE MEASURES TO BE TAKEN BY HANOI CITY TO CREATE AN ATTRACTIVE INVESTMENT ENVIRONMENT

1)     To upgrade the quality and efficiency of the foreign investment promotion:

•  Change of investment promotion from negative to positive, leading investors to the direction for social and economic development in Hanoi city, thus facilitating a sustainable economy.

• Upgrade the quality of promotion materials, to use web site for marketing the projects calling for foreign investment and introducing policies to encourage foreign investors.

•  Publish news papers, magazines, guide books, CD-ROM, video tapes, pictures; use them for investment promotion and introduction of Hanoi's potential.

•  Take initiative in cooperation with the Ministry for Planning and Investment, central and international agencies to organize forums on investment promotion in Vietnam and/or abroad, in financially potential countries and/or regions.

• Facilitate foreign companies and groups and international financial institutions in opening their representative offices in Hanoi.

 2)     To take administrative reform:

•  Set up an Investment Promotion Centre, that comprise of representatives of relevant authorities, to provide investors with information and rapid investment procedures in project formulation, evaluation and approval for investment license (on the principle of one door and one stop).

• Investors are provided free of charge with information related to investment in Hanoi

• Publicly notify regulations on submission and receipt of investment application. The contents include an assessment of the investment project including the legal status and financial capabilities of investors, the level of conformity of the project in comparison with the master plan and the protection of environment, the socio-economic benefits; the technical and technological levels, and finally the reasonable in regard to the use of land.

• Time limit for the assessment of a project has been shortened, applicable to projects which have been decentralized:

+ Assessment of a project that falls under Group B: within 20 working days (30 days as regulated by the Decree).

+ Assessment of a project for which investment is encouraged: within 15 workings days (20 days as regulated by the Decree).

+ Assessment of a project for which investment is specially encouraged: within 10 working days (15 days as regulated by the Decree).

 3)     A number of incentives to attract FDI:

Hanoi has been prepared and set up appropriate policies and mechanism to encourage foreign investors.

• For projects that fall under Group B, shall be entitled to exemption of land rental payment for two years as from the time when the project commences its business operation (not included the time for construction) and reduction of 50% for two subsequent year

•  For large-scale investment (value of more than US$ 50 million) and land used (area of land of more than 5 hectares) projects, which are encouraged and specially encouraged, shall be entitled to exemption of land rental payment for seven years as from the time when the project commences its business (not included the time for construction) and reduction of 50% for three subsequent years.

•  Exemption of land rental for a long period of time shall be applicable to encouraged and specially encouraged projects, which invest in certain sectors being break-through for social and economic development of Hanoi City.

•   The advance, which is already paid by foreign investors for compensation and land clearance, shall be deducted from the land rental.

• The Hanoi Government shall assure to support construction of technical infrastructure facilities up to the fences of project.

•   The Hanoi Government shall assure to support a part in training of skilled workers, technicians for hi-tech and specially encouraged projects (if requested by investors).

4)     Commendation and Award

To appreciate the efforts of Vietnamese and international agencies, individuals and companies that have rendered excellent services in their consultation, advice and  encouragement of foreign entrepreneurs investing in Hanoi. Awards to timely commend enterprises and individuals who attain an excellent achievement in FDI promotion and  business production will be awarded including state medal, order, complimentary certificate and honorable name of Hanoi City, in kind, cash, etc.

5)     Attraction of FDI projects to industrial zones:

• Projects that invest in industrial zones shall be entitled to preferential treatment applicable to specially encouraged projects

• Rental payments have been revised from one installment to three or four installments for a duration of 50 years.

•  The rental of infrastructure facilities in industrial zones shall be directed by the authority to minimize the arbitrary price setting of each industrial zone. The rental shall be set up first  to enterprises' advantage and in turn of state regulation (The Government has already been reduced land rental to the lowest level. However, the rental of infrastructure facilities and management fee has been set  differently between 5 industrial zones, hindering foreign investors to invest in industrial zones).

6)     Personnel organization

Vietnamese cadres, who will be assigned to management positions in foreign invested enterprises, require to be with appropriate education/qualifications and training, good command of foreign languages. This will avoid the problem of individuals concurrently having too many responsibilities and being distracted from his/her assignment vested in the joint venture enterprise.

7)     Some other aspects

•  Hanoi has been promoted the establishment of representative offices for investment -trade and tourist promotion (in North America, Europe, Japan, etc.) in order to facilitate investors getting information and develop trade cooperation.

• Hanoi gets ready to build plants for toxic solid waste and wastewater treatment and customs clearance places.

• To build expatriate housing for lease, international hospitals, international high schools and universities

•  The Vietnamese Government has gradually reduced prices and fees for telecommunication and is abolishing the dual pricing system.

Process of issuing investment licenses Hanoi, Vietnam

1. Time limits

-        Shortening the time limits for evaluation of projects and issuance of investment licenses:

         + Projects subject to registration for issuance of investment licenses : 10 days.

         + Projects to be evaluated for issuance of investment licenses: 20 days.

-        Simplifying the procedures for preparation of application dossier, evaluation and issuance of investment licenses by cutting 26 down to 5 stops to be evaluated, which is applicable to big-size projects, using large area of land, including:

          + Providing information, receipt of project dossier, evaluation and issuance of investment licenses (Hanoi Authority for Planning and Investment);

          + Suggestion of project site, providing guidelines of architectural plan (Office of Chief Architects )

           + Signing  contract of land lease (Department of Land and Housing Management)

           + Compensation and land clearance (The City's Board of Land Clearance)

           + Evaluation of construction work's technical design and issuance of construction permit (Department of Construction)

-         Simplifying the procedures for preparation of application dossier, evaluation and issuance of investment licenses by cutting 26 down to 1 stop to be evaluated, which is applicable to small-size projects: The application dossier will be submitted by investors to the Hanoi Authority for Planning and Investment and evaluated for issuing investment licenses (after having received written opinions of relevant ministries and submitted to Hanoi People's Committee for approval).

2. Aspects to be evaluated

Simplifying evaluation procedures from 22 to 5 basic aspects, including:

          + The legal status and financial position of foreign and Vietnamese investors.

          + The conformity of the project with the planning.

          + The socio-economic benefits.

          + The applied technical and technological level.

          + The appropriateness of land use.  

Source: Hanoi - industries & investments, Vietnam (Hanoi website)

Website: http://www.hanoi.gov.vn

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