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The Hanoitimes – The conference would also lay a strong foundation for Hanoi to continue growing robustly in the coming years, said Hanoi’s top leader.

The upcoming “Hanoi 2020 – Investment and Development Cooperation” conference, which is scheduled to take place on June 27, would send a message that Vietnam, and Hanoi in particular, is a safe and attractive destination for doing business, according to Secretary of the Hanoi Party Committee Vuong Dinh Hue.

Hanoi’s upcoming investment promotion conference showcases the city’s determination to become a safe and attractive destination for investors. Photo: Thanh Hai.

This is the first of a series of events to be hosted by Hanoi in response to the patriotic emulation movement, as well as in celebration of the city’s 17th Party Congress, 1010th anniversary of Thang Long – Hanoi, the 13rd Party National Congress, Hue said at a meeting late on June 22.

The conference would also lay a strong foundation for Hanoi to continue growing robustly in the coming years, Hue stressed.

While the preparation process for the conference is all but completed, it is expected that it would attract up to 1,500 delegates, including international experts, investors and senior officials, revealed a report of the Hanoi Promotion Agency.

At the conference, the city will issue investment licenses for over 115 projects. Among them, domestic investors are expected to invest nearly VND340.6 trillion (US$14.63 billion), including funding for 26 social housing projects worth VND72 trillion (US$3.11 billion) for low-income buyers.

Additionally, foreign-invested projects being licensed by Hanoi this time are estimated to worth a total US$3.5 billion.

The city is calling for investment in 282 projects with estimated cost of a combined VND483.1 trillion (US$20.93 billion).

The organization of the conference after Hanoi’s initial containment of the Covid-19 pandemic sends a strong message on efforts of the capital city and Vietnam to lure investment from domestic and overseas businesses, said the municipal Party chief.

More than ever, Hanoi remains a safe and stable investment destination for investors as the capital city is determined to be the pioneer among Vietnam’s localities in rebooting the economy in the post-pandemic period, he added.

In 2020, Hanoi targets an economic expansion rate 1.3 times higher than the national average, and a state budget revenue of VND285 trillion (US$12.34 billion).

FDI commitments to Hanoi in the year to May 19 increased 6.1% against the previous month to US$1.04 billion. From the start of this year, the capital city has approved 255 new projects worth US$327 million and allowed other 63 to pump an additional US$378 million in the five-month period. Foreign investors also contributed US$340 million in capital to other 468 projects.

A 3-year-old girl miraculously survived falling from the 13th-floor balcony of an apartment building in Hanoi, caught by a passer-by.

The Hanoitimes – With the Covid-19 impacts still looming on local economy, domestic car prices have gone down but remained nearly double the prices of vehicles sold in Thailand and Indonesia, mainly due to high fees and taxes for locally made cars.

Rising domestic production capacity and existing government’s support policies to cut fees and taxes for locally made cars are expected to be major factors dragging down car prices in Vietnam in the coming time.

Car production at Hyundai Thanh Cong manufacturing plant. Photo: Hoang Giang

A representative from the Truong Hai Auto Corporation (Thaco), one of Vietnam’s leading car manufacturers, expected the country’s participation in free trade agreements (FTAs) with major partners, including the EU, Japan, UK and South Korea, would help further abate costs for importing car parts with import duty at 0%.

With the Covid-19 impacts still looming on local economy, domestic car prices have gone down but remain nearly double the prices of vehicles sold in Thailand and Indonesia, mainly due to high fees and taxes for locally made cars.

“High product quality and low base cost are essential for Vietnam cars to compete with their foreign peers,” said auto expert Nguyen Minh Dong, adding only a bigger market size could attract more investors to come in to produce cars in the country and enhance localization rate.

Director of Hien Toyota noted while car manufacturers can streamline operation to drive down the production cost, taxes and fees are dependent on state policies.

“Lowering taxes and fees for cars will no doubt reduce prices and bring more benefits for customers,” she said.

Booming market demand

A recent report from the SSI Securities Corporation suggested Vietnam’s income per capita is on the rise and set to grow at an average of 8-10% in the next decade.

“Compared to regional countries, the current income per capita is fast approaching to a point of bursting demand for cars,” asserted the SSI, adding cars would soon move from the luxury category with a passenger vehicle density of 34 per 1,000 to a more ordinary one with a density level comparable to countries in the region.

The SSI also pointed to a key factor that the domestic car market is big enough for car manufacturers to shift from importing cars to assembling/manufacturing domestically.

At present, six major car manufacturers of Thaco, Huyndai, Toyota, Mitsubishi, Ford and Honda account for 90% of the market share in Vietnam with a combined production capacity of 30,000-60,000 units per year, exceeding the break-even point for domestically-produced cars of 30,000-40,000 cars per year for an assembling plant, or 10,000-20,000 units for each car model.

According to the SSI, domestic car production capacity  is increasing rapidly to meet customers demand, a key step to lower car prices.

With more cars manufacturing and assembling plants scheduled to complete in the 2022-23 period, the SSI expects a heating up car markets with steep discount policies would drive up domestic car demands.

Along with existing Vietnam’s support policies for the automobile industry, the National Assembly is currently discussing a possibility of reducing the excise tax rate for locally made cars, in which the specific reduced rate would be in line with the localization rate, aiming to boost sales of affordable car models.

The Hanoitimes – The upcoming investment promotion event shows the city’s determination to be the pioneer among localities in pushing for economic recovery after Covid-19.

The Hanoi Party Committee has announced the city will host an annual investment promotion conference at the Vietnam National Convention Center on June 27.

Hanoi’s investment promotion conference in 2018.

The organization of the conference right after Hanoi’s early containment of the Covid-19 pandemic would send a strong message on the capital city’s efforts in particular, and of Vietnam in general, to lure investment from domestic and abroad businesses.

More than ever, Hanoi remains a safe and stable investment destination for investors, stressed the municipal Party Committee.

The investment promotion conference, themed “Hanoi 2020 – Investment and Development Cooperation”, shows the city’s determination to be the pioneer among Vietnam’s cities/provinces in recovering and developing the economy in the post-pandemic period.

According to the committee, the process would boost Hanoi’s administrative reform and enhance the city’s business and investment environment towards the ultimate goal of achieving high economic growth.

In 2020, Hanoi targets an economic expansion rate at 1.3 times higher than the national average.

The Hanoi Party Committee requested the municipal People’s Committee to strictly comply with current regulations on approving new FDI projects, focusing on those with modern technologies and environmentally-friendliness, and in line with the city’s vision for sustainable development, national and social security.

Data: Municipal Statistics Office. Chart: Nguyen Tung.

Chairman of the Hanoi People’s Committee Nguyen Duc Chung on May 9 said at the event, the city will issue investment certificates for some 100 projects. Among them, domestic investors are expected invest nearly VND330 trillion (US$14.28 billion), including 26 social housing projects worth VND72 trillion (US$3.11 billion) for low-income buyers.

Chung also revealed Hanoi would issue investment certificates for foreign-invested projects worth US$3.5 billion, and the city would continue to call for investment in IT, logistics and e-commerce.

FDI commitments to Hanoi in the year to May 19 increased 6.1% against the previous month to US$1.04 billion. From the start of this year, the capital city has approved 255 new projects worth US$327 million and allowed other 63 to pump an additional US$378 million in the five-month period. Foreign investors also contributed US$340 million in capital to other 468 projects.