(Luận văn) solutions of efficient improvement mobilization and use of fdi capital in hanoi

INTRODUCTION The urgency of research subject Firstly, an economy wants to grow highly and stably must ensure sufficient demand for investment capital Large and long-term funding calls for capital boom home savings as well as growth the appeal of foreign funding For growing countries, when the scarcity of domestic funding is inadequate to satisfy the capital demand, the reception of foreign investment (FDI) will lu an become even more vital to bring massive benefits which is great for n va the technique of financial increase and improvement, elevating the income and exist to tn ence of the people ie gh With its extraordinary advantages, attracting an increasing number of FDI p has become the monetary development approach of every country Along nl w with increasing FDI appeal, the assessment of socio-economic efficiency d oa of the usage of FDI capital as a foundation for national governments in addition an lu to local governments have strategies to attract funding in any industry, set out what va regulations to use make first-class use of this investment capital for the socio- ul nf monetary improvement of each locality In conclusion, FDI plays an important role oi lm for developed economy in every country z at nh Over 30 years of renovation with reforms to open the integration with the world economy, Vietnam has made progress in attracting international investment capital, z gm @ especially FDI inflows In general, FDI inflows to Vietnam have continuously increased in both quantity and quality It can be affirmed that FDI is an important l dynamic and competitive for our united states market m co supply of capital for Vietnam economy, a driving pressure and creating an Lu n va ac th si Fueled by non-stop growth, Vietnam maintains to attract file foreign direct investment (FDI) The latest information from the Foreign Investment Agency (FIA) suggests that FDI in Vietnam in 2019 reached US$38.2 billion an increase of 7.2 percent compared to the same length in 2018.7 According to the Politburo's Resolution No 50-NQ / TW of August 20, 2019, government should complete the rules and policies of foreign investment which has high competitiveness and international integration, meet the requirements of lu renewing the growth model, restructuring the economy, protecting the environment, an n va solving social problems well, improving productivity, quality, efficiency and tn to competitiveness of the economy To basically overcome the existing limitations and inadequacies in building, perfecting and organizing the implementation of gh p ie institutions and policies on foreign investment cooperation Creating business w environment and competitiveness of ASEAN before 2021 and ASEAN before oa nl 2030 This is the good signal for investors d Objectives of the research an lu nf va The overall objective is to research theoretical basis and experiences of some oi lm ul cities in the world about on the policies of mobilization and using of FDI:  Analyzing the current situation of mobilizing and using FDI capital z at nh  Situation of mobilizing and using FDI capital from many perspectives  Proposing solutions stemming from the actual situation, with grounds for z gm @ effectively control the mobilizing and using FDI capital Research scope: m co l Research subjects: Activities of mobilizing and using FDI capital in Hanoi City an Lu n va ac th si  In term of space: The dissertation has studied and analyzed the situation of mobilizing and using FDI capital in Hanoi  In terms of time: the thesis focus mainly on the period from 2015 – 2019 Research methods Student choose dialectical materialism and historic materialism primarily based lu on objective phenomena and socio-monetary rules At the identical time, student an use a combination of research methods to achieve research objectives n va Specifically: tn to ie gh a) Methods of collecting and processing information p The method of collecting and processing information is used by students to nl w collect primary and secondary documents These are the financial statements of d oa Department of Planning and investment in Hanoi Along with that are projects, an lu scientific research projects at many levels oi lm b) Analysis method ul foreign direct investment nf va Master's thesis in economics, domestic and foreign scientific papers related to z at nh The analytical method is used to analyze the data related to the problems of z foreign direct investment In addition, the method is used in analyzing how to @ gm use FDI effectively The thesis has analyzed some records to look the effect of m co l FDI mobilization and utilization However, the situation of FDI of each cities is a very sensitive issue, apart from some publicity information and data available, an Lu many documents are provided by the authorities n va ac th si are internal and unpublished documents But I can confirm that the documents have clear origin, high reliability and provided by the competent authorities following the procedure At the same time, I have used and quoted truthfully in the thesis c) Comparison method This method is used to compare the provisions of the use of FDI and the lu limitations of certain cities Moreover, comparison methods are also used for an comparison and analysis mobilizing and using FDI capital to show the pros and n va cons of each regulation tn to d) Method of systematization and synthesis ie gh p Systemized and generalized methods are used to link research points into a nl w unified whole to express the most complete and profound issues of the thesis oa The method of systematization and synthesis also helps me answer the research d questions logically and in accordance with the law, with the nature of the nf va an lu problem oi lm ul Structure of the thesis In addition to the introduction, conclusion and list of references, the thesis z at nh consists of chapters: z  Chapter 1: Overview of foreign direct investment @ gm  Chaper 2: Current situation of foreign direct investment in Hanoi capital in Hanoi m co l  Chapter 3: Solutions of efficient improvement mobilization and use of fdi an Lu n va ac th si CHAPTER I OVERVIEW OF FOREIGN DIRECT INVESTMENT 1.1 Researches about foreign direct investment In the trend of economic globalization, both foreign investment and foreign direct investment has become significantly increased In Vietnam, foreign direct investment just happened recently Overall, to know the advantages and drawbacks of FDI, this research need to research carefully lu an 1.1.1: Foreign investment a) Investment n va to tn An investment is an asset or item acquired with the goal of generating income or ie gh appreciation In an economic sense, an investment is the purchase of goods that p are not consumed today but are used in the future to create wealth In finance, an nl w investment is a monetary asset purchased with the idea that the asset will provide d oa income in the future or will later be sold at a higher price for a profit lu va an b) Characteristics of investment: ul nf Investing is putting money to work to begin or make bigger a project - or oi lm to buy an asset or interest - in which those finances are then positioned to work, with the goal to profits and increased price over time The term "investment" z at nh can consult with any mechanism used for generating future income In the z economic sense, this includes the acquisition of bonds , stocks, or real estate @ belongings among several others Additionally, a constructed constructing or gm l different facility used to supply goods can be seen as an investment The an Lu investing m co manufacturing of products required to produce other goods can also be visible as n va ac th si Investment classification  According to the national scope  Domestic investment  Foreign investment  According to the using timeline  Long-term investment  Short-term Investment lu  Medium-term investment an n va  According to economic field tn to  Investment in infrastructure gh  Investment in industrial production p ie  Investment in agricultural production w  Investment in developing resources oa nl  Investment in commercial, services and tourism d  Investment in finance lu oi lm ul  Indirect investment nf  Direct investment va an  According to the investors z at nh In fact, people always distinguish into types: direct investment and indirect investment It depends on receiving, administering and using the investment z funds l gm @ c) Foreign investment m co Foreign investment includes capital flows from one us of a to another, granting an Lu the foreign investors full-size ownership stakes in domestic corporations and assets Foreign investment denotes that foreigners have an energetic role in n va ac th si control as part of their investment or an equity stake massive enough to allow the overseas investor to influence enterprise strategy A modern fashion leans in the direction of globalization, where multinational firms have investments in loads of countries d) Direct and indirect foreign investments Foreign investments can be classified in certainly one of two ways: direct and indirect Foreign direct investments (FDIs) are the physical investments and lu an purchases made by using a business enterprise in a foreign country, usually by n va way of opening flora and shopping for buildings, machines, factories, and other tn to equipment in the overseas country These types of investments find a far greater gh deal of favor, as they are commonly considered long-time period investments p ie and help bolster the overseas country’s economy nl w Foreign indirect investments involve corporations, financial institutions, and d oa private investors buying stakes or positions in foreign companies that trade on a an lu foreign stock exchange In general, this form of foreign investment is less nf va favorable, as the domestic company can easily sell off their investment very oi lm ul quickly, sometimes within days of the purchase This type of investment is also sometimes referred to as a foreign portfolio investment (FPI) Indirect instruments such as bonds z at nh investments include not only equity instruments such as stocks, but also debt z gm @ e) Types of Foreign Investment m co l There are two additional forms of overseas investments to be considered: commercial loans and professional flows Commercial loans are typically in the an Lu shape of financial institution loans which might be issued by means of a home bank to agencies in foreign international locations or the governments of these n va ac th si international locations Official flows is a well-known time period that refers to different kinds of developmental help that evolved or developing nations are given through a home country Commercial loans, up until the 1980s, were the biggest source of foreign funding throughout growing nations and emerging markets Following this period, industrial loan investments plateaued, and direct investments and portfolio investments increased extensively across the globe lu an n va 1.1.2 Foreign direct investment tn to a) Definition ie gh p A foreign direct investment (FDI) is an funding in the form of a controlling nl w ownership in a commercial enterprise in one country with the aid of an entity oa based totally in another country It is therefore prominent from a foreign d portfolio funding through a perception of direct control an lu nf va Broadly, foreign direct investment includes "mergers and acquisitions, oi lm ul constructing new facilities, reinvesting earnings earned from overseas operations, and intra business enterprise loans" In a slender sense, foreign direct z at nh funding refers just to constructing new facility, and a lasting management interest (10 percentage or greater of voting stock) in an employer working in an z economy apart from that of the investor FDI is the sum of equity capital, long- @ l gm term capital, and short-term capital as shown within the balance of payments FDI normally entails participation in management, joint venture, switch of aera m co and expertise Stock of FDI is the net (outward FDI minus inward FDI) an Lu cumulative FDI for any given period Direct investment excludes investment n va ac th si through purchase of shares (if that purchase results in an investor controlling less than 10% of the shares of the company) FDI, a subset of international aspect movements, is characterized with the aid of controlling ownership of a business employer in one country by an entity based in some other country Foreign direct investment is distinguished from overseas portfolio investment, a passive investment in the securities of every other country consisting of public stocks and bonds, by means of the lu element of "manipulate" According to the Financial Times, "Standard an n va definitions of control use the internationally agreed 10 percentage threshold of tn to voting stocks, however that is a grey place as frequently a smaller block of shares will give manage in widely held companies Moreover, manipulate of gh p ie technology, management, even vital inputs can confer de facto manage." nl w b) Theoretical background d oa According to Grazia Ietto-Gillies (2012) previous to Stephen Hymer’s principle an lu regarding direct funding within the 1960s, the motives in the back of foreign nf va direct investment and multinational groups have been explained via neoclassical oi lm ul economics based totally on macro financial principles These theories have been primarily based at the classical principle of exchange wherein the motive at z at nh the back of alternate was a end result of the difference inside the prices of production of goods between countries, focusing at the low value of z manufacturing as a motive for a firm's foreign activity For example, Joe S @ l gm Bain most effective defined the internationalization project through three main principles: absolute cost advantages, product differentiation benefits and m co economies of scale Furthermore, the neoclassical theories had been created an Lu under belief of the existence of perfect competition Intrigued by using the n va motivations behind huge overseas investments made by way of businesses from ac th si the United States of America, Hymer evolved a framework that went beyond the prevailing theories, explaining why this phenomenon occurred, considering he taken into consideration that the previously cited theories could not explain foreign investment and its motivations c) Types of foreign direct investment  Horizontal FDI arises when a firm duplicates its home country-based activities at the same value chain stage in a host country through FDI lu an  Platform FDI Foreign direct investment from a source country into a va destination country for the purpose of exporting to a third country n downstream in different value chains i.e., when firms perform value- ie gh tn to  Vertical FDI takes place when a firm through FDI moves upstream or p adding activities stage by stage in a vertical fashion in a host country oa nl w d) Characteristics of foreign direct investment d Foreign investment not only bring capital to receiving investment country but lu va an also bring technology, engineering, business skill, producing and marketing ul nf capacity, etc This way of investment almost complete because while the oi lm multination companies are doing invest, production and business activities in the receiving investment country are still working So that, investment high z at nh technology is one of the factors which make competitiveness higher on market This is the most important characteristic to mark off from ODA (Official z gm @ Development Assistant) m co l Foreign investors contribute a minimum amount of capital to the legal capital depending on policy of foreign investment Law of each country, so that they will an Lu have right to participate directly control and manage the products they invested For example, in Vietnam according to 8th of Foreign Investment Law in Vietnam n va ac th si The number of employees in the FDI sector increased significantly, but in general the proportion still increased only slightly Because FDI in Hanoi often focuses on research, development, services, etc., most of the FDI sector's workers are usually intellectual and highly specialized In 2015, the number of employees in the FDI sector was 243 thousand, in 2017 increased to 363 thousand, accounting for 5.9% of the total number of employees compared with the previous year, and by 2019 increased to 409.7 thousand people (6.06% of lu total employees in Hanoi) an n va 2.4.6 Improving science technologies and environment tn to Hanoi is the capital of Vietnam, before having foreign investment, Hanoi had a ie gh number of large factories but it was located in a densely populated and old area p To escape this situation in order to develop Hanoi's economy, the Hanoi People's nl w Committee moved factories out of the suburbs and had modern technologies to oa meet production needs The path of technological development by studying the d world at which technological development is in a rush is very difficult and an lu expensive In the context of our country's economy today, the fastest way to va ul nf develop science and technology, technology and production level is to take oi lm advantage of foreign advanced scientific and technological achievements through transfer technology transfer Receiving foreign direct investment is a z at nh method that allows our country to access to the most modern technology in the z world @ l gm The evaluation shows that for Hanoi province, FDI has significantly changed the technology as well as the technological level of the province Because foreign m co investors come to invest in the province, they not only transfer capital in cash but an Lu also in-kind capital through machinery, equipment (hardware technology) and n va ac th si model capital like technical experts , technology, scientific knowledge, management know-how, management know-how However, in recent times, the level of improvement and technology import in Hanoi has not been highly appreciated compared to the cost of investing in improving science and technology FDI contributes primarily to the field of research in Hanoi Therefore, the technology investment in Hanoi has not had a deep impression lu an Although Hanoi has focused on developing local technology through FDI, Hanoi n va is not a place where there is not much ground for industrial development, not tn to only that, technology investment in Hanoi only Service for tourism needs, ie gh telecommunications and not yet popular p Environmental impact is a category that reflects the duality of FDI Changing nl w advanced technology can help improve the environmental pollution caused by d oa outdated technology, especially for developing countries like our country an lu However, the strong attraction of industrial enterprises operating locally is one of nf va the causes of environmental pollution According to environmental experts, the oi lm ul economic sectors in the industry - construction sector have the highest proportion of water and air pollution, while the economic sectors in the service z at nh and trade sectors have highest solid waste ratio; However, the composition of toxic substances in the economic sectors of industry and construction sectors z accounts for a higher proportion than the service and trade industries gm @ The fundamental reason for the efficiency is that the city has paid special l m co attention to environmental improvement and overcoming negative impacts from FDI on the environment Hanoi has set out policies and technical solutions to an Lu n va ac th si protect the environment, especially in managing investors in implementing environmental protection regulations 2.4.7 FDI contributes to the level of infrastructure improvement Thanks to FDI, infrastructure in Hanoi has improved markedly, many experts have assessed that FDI has changed the face of infrastructure The basic reason for achieving this achievement is that in the recent past, Hanoi has promptly met the capital needs for Hanoi's growth needs, and at the same time formed and lu an developed large industrial parks, Real estate potential to promote FDI attraction n va Therefore, promoting infrastructure development in the service and construction tn to areas, contributing to improving social welfare, improving the lives of people in ie gh the community Forming a contingent of highly qualified managerial and p technical workers, access to current science, labor discipline and management nl w experience d oa 2.5 Results of foreign direct investment in Hanoi foreign direct investment va an lu by investment field In recent years, Hanoi's FDI activities have had positive results expressed in the nf areas oi lm ul forms of investment sector, investment partners, forms of investment, investment z at nh 2.5.1 Foreign direct investment according to investment partners z Nowadays, there are 26 countries take part in investing in Hanoi According to @ including: Japan, Singapore, Korean, Malaysia, … m co l gm the number of investment partners, there are some countries which invest most As we can see, the foreign capital in Hanoi mostly from Asia group The an Lu investors form Europe and America are still a small number n va ac th si The propotion of investors in Hanoi 2%2% 8% 10% 48% lu 30% an n va Singapore Korea Malaysia Europe America p ie gh tn to Japan nl w The pie chart figured d oa Foreign direct investment according to forms of investment sector va an lu Forms of Registered projects capital z at nh investment Number of oi lm Unit ul nf FDI structure into Hanoi by forms of investment sector sector (million z VND) @ 140 12,838 48.1 industry 786 8,484 31.7 Wholesale 792 1,565 256 1,508 an Lu tourism - m co l and retail 5.8 5.5 n va real estate gm Ratio (%) ac th si services infrastructure 671 2,293 8.6 (counting the projects still working until the last day of December, 2018) The table chart figures the foreign direct investment according to forms of investment sector Overall, FDI capital was not balance between industries As we can see, the capital investment stayed focus on the real estate, which reached 48.1 percent Although the number of real estates’ projects were smaller lu an than the number of industries, the capital was still higher The main reason was va because Hanoi is the capital which have a huge number of populations, so that n tn to the value of landing always goes up significantly Secondly, the industries ie gh accounted for the 2nd highest proportion (31.7%) Other sectors were strongly p decreased about 5.8% for wholesale and retail, 5.5% for tourism – services, 8.6% oa nl w for infrastructure FDI in Hanoi mainly focuses on real estate and industry These are also two main d an lu factors that help Hanoi successfully attract FDI In addition, FDI investment in nf va the financial - banking market is also a remarkable field, with 3,725 million dong oi lm ul of total registered capital, finance and banking is also an important factor in raising FDI capital in Vietnam Hanoi The remaining sectors attract insignificant z at nh FDI because it is still limited because of the population density in Hanoi, the infrastructure development is not high In general, FDI industry structure has z gm @ fully exploited the advantages of Hanoi and developed in the right direction of the government However, it is necessary to direct investment to attract more l into the research of green and high-tech projects in Hanoi m co an Lu 2.5.2 Foreign direct investment under the form of investment n va ac th si The Law on Foreign Investment in Vietnam has three main forms of investment: joint-venture enterprises, 100% foreign-owned enterprises, business cooperation contracts and some other forms such as BOT, BTO, and BT in Vietnam male These are all implemented, but in Hanoi there are only three forms: business cooperation contracts, joint venture enterprises and enterprises with 100% foreign capital Registered capital increased continuously, mainly in 100% foreign-owned lu enterprises: this enterprise had a rapid growth rate and accounted for a relatively an n va large proportion compared to the investment form in Hanoi , demonstrating the tn to potential that has attracted investors to pay attention to Hanoi ie gh Count to the last day of the year 2018, FDI projects had form of investment: p Vốn FDI vào Hà Nội theo hình thức đầu tư w The number of projects Registered capital oa nl Forms of investment d (million USD) enterprises 986 oi lm 36 4558 723 z at nh contracts Total 14799 ul business cooperation 17519 nf joint-venture enterprises 3536 va an lu 100% foreign-owned 33041 z m co l gm @ an Lu n va ac th si Chart Title 90 80 70 60 50 40 30 20 lu 10 an 100% foreign-owned enterprises joint-venture enterprises n va business cooperation contractsory Registered capital p ie gh tn to Projects w If in the period 1992-1999, the amount of investment in the form of joint oa nl ventures accounted for the majority, the period of 2015-2019 has changed d markedly: Enterprises with 100% foreign capital dominate an lu va Hanoi is the central capital of the socio-economy and investment environment, ul nf so real estate investment is extremely potential Investors can quickly hire oi lm foreign law firms to advise on FDI projects On the other hand, the Hanoi z at nh People's Committee always facilitates to provide procedures and permit for rapid investment for investors A number of consulting offices are opened for advice z and protection Measures to mobilize and encourage FDI attraction are clearly @ l gm committed and implemented by the Government and management agencies m co During the period when the joint venture dominated, domestic partners revealed limitations in management and investment, so foreign investors limited their an Lu cooperation Because of the above reasons, the form of 100% foreign capital n va accounts for over 55% of the total registered FDI capital in Hanoi ac th si The form of business cooperation contract only accounts for 1% of the registered FDI capital in Hanoi It can be seen that the form of FDI through establishing a 100% foreign-owned enterprise is the most favored form in the recent period of FDI attraction in Hanoi 2.5.3 FDI according to investment areas lu a) Industrial parks an n va In 1991, the first industrial park of Vietnam appeared Since then, industrial tn to zones have been steadily increasing and concentrated in key areas such as Ho Chi Minh, Dong Nam, Ba Ria and Binh Duong Industrial zones have gh p ie contributed to improving the country's export capacity, attracting investment, nl w technology, and facilitating GDP growth oa For Hanoi, old industrial zones were formed in the 50s and 60s These are non- d planned industrial zones such as Minh Khai - Vinh Tuy, Thuong Dinh, Dong an lu Anh, Cau Dien - Nghia Do, Gia Lam - Yen Vien, Truong Dinh, Van Dien - Phap va ul nf Van, Chem, Cau Buu These industrial parks are not fully built, lack oi lm infrastructure and are located in densely populated areas It is that that makes it difficult for urban development and becomes a staple of the City z at nh Currently, Hanoi has licensed industrial parks, including Noi Bai Industrial z Park, Dai Tu Industrial Park, Thang Long, Sai Dong B, Daewoo - Hanel The @ such as Gia Lam, Dong Anh and Soc Son industrial Investment sector Registered an Lu parks Year m co Unit l gm above industrial parks are located in suburbs, concentrated in suburban areas capital n va ac th si (million USD) Sai Dong B 1996 electronic products 289 and industries that not pollute the environment Noi Bai 1995 mechanical 40.4 lu products of the an province are va n encouraged FDI to Ha Noi – Dai 1995 light industries, Tu chemical textiles Thang Long 1996 6.21 electronic and 86,6 telecommunication oa nl w p ie gh tn products d Daewoo- 1997 b) FDI projects in Hanoi oi lm ul nf va Hanel an lu z at nh FDI increasingly attracts many big projects in Hanoi 2019 is considered to be a z year with many terrible projects in Hanoi, a year of positive macroeconomic @ gm growth According to analysts, foreign capital inflows will contribute to m co l standardizing the market, creating values according to international standards, raising the real estate market in Hanoi and sharing many burdens from the an Lu financial market n va ac th si In 2019, the most notable foreign real estate project in the field of Real Estate is the Multi-purpose Entertainment Complex Project - a racecourse in Soc Son District, Hanoi The project is invested by Charmvit Group (Korea) with a total investment of about 420 million USD (equivalent to about 9,600 billion VND) The project is implemented on a total area of 125 hectares (of which 22.5 hectares is the area of a regulating lake invested by Hanoi City) lu an In particular, the racecourse is built on an area of 99.5 hectares; including horse n va racing stadium, horse-watching stands, accommodating 30,000 people for tn to catering, horse racing and betting events; equipment and facilities for equestrian gh betting equipment, horse racing betting agency system; horse stables, office p ie areas; horse training, teaching and care area; parking… nl w Another major real estate project that has just started in 2019 is the Smart City d oa Project The project has a total area of 272 hectares, located in the communes of va an lu Hai Boi, Vinh Ngoc and Kim No, in Dong Anh district, Hanoi The project is invested by a joint venture of Sumimoto Group (the third largest nf oi lm ul economic corporation in Japan) and BRG Group with a total investment of nearly 4.2 billion USD (equivalent to about 96.145 billion VND at present) with z at nh the goal building intelligent and synchronous urban areas on technical and social infrastructures z @ gm This is a project based on the smart urban planning along Nhat Tan - Noi Bai m co l axis, about 11km in length, from Nhat Tan Bridge to Noi Bai Airport The project has just been broken down on October 6, 2019 and is expected to an Lu complete all phases by 2028 n va ac th si The largest FDI project in 2019 belongs to the processing and manufacturing industry It is a project to contribute capital and buy shares of Beerco Limited (Hong Kong) into Vietnam Beverage Co., Ltd with a capital contribution of US $ 3.85 billion The main objective is brewing beer and brewing malt in brewing beer in Hanoi It can be said that Hanoi is still attracting potential for real estate investment All of these things prove more clearly about the city of the socio-economy, although lu there is not enough infrastructure to attract FDI for export, but it is still a an n va potential area for investment gh tn to 2.6 Factors affecting the efficiency of mobilization and use of FDI FDI attraction is a bright part of the economic picture in 2019 As of December ie p 20, the total newly registered capital, adjusted and contributed capital to nl w purchase shares of foreign investors reached US $ 38.02 billion, an increase of d oa 17.2% over the same period in 2018 lu va an By 2019, Hanoi has attracted over US $ 8.4 billion of FDI, disbursing 74% The per capita GRDP reached VND 120.1 million, an increase of 7% compared to nf oi lm ul 2018 (an increase of VND 7.9 million) As of December 31, 2019, foreign direct investment reached VND 43.9 trillion, z at nh up 19% z Hanoi still has 5955 valid foreign investment projects, disbursement capital of @ an Lu a) Strategic motivation of the Investor m co 2.6.1 Objective Factor l gm 26.5 billion USD, (about 62.3%), leading the whole country (about 57%) n va ac th si For every investor, they have their own strategies Different industries often have different advantages of ownership and localization, so the investment motives of investors will be different, so FDI can be divided into four categories: investment seeking resources , market, efficiency and strategic assets Currently, Hanoi's revenue is mainly from foreign investment in real estate, especially from Japan Smart apartment buildings and famous real estate are mainly from foreign investors investing in Hanoi lu an FDI in Hanoi mainly invests in areas: real estate, services, banking and finance n va and high technology to gh tn The strategic motivation of investors has a great impact on the influence in the efficiency of FDI attraction p ie nl w b) Capacity of investors oa The capacity of investors contributes a major role to the socio-economic d efficiency of FDI in Hanoi Investors with strong economic potentials come from an lu economic groups of Japan, Korea, Malaysia, Singapore, etc who are very va ul nf influential investors when their economic resources are strong they fulfill oi lm commitments when they make investment, develop welfare regimes for workers fully, make good on commitments on environmental protection, in addition they z at nh bring technology High, advanced management capacity so that we can receive z transfer and study But also many investors from China because of bringing @ gm backward technology from the country they transferred to Vietnam due to the m co l weak capacity of technology appraisers in Vietnam, so that it could lead to outdated technologies environmental pollution in addition, the poor financial an Lu capacity of investors causes delays in the disbursement, bad business, salaries of workers, or investors force workers to work Excessive payout with n va ac th si disproportionate remuneration causes strikes that adversely affect social performance 2.6.2 Subjective Factor a) Economic - political - social stability, economic development mechanisms and policies Under the direction of the Party, the Government and the leadership of the lu People's Committee of Hanoi City are one of the provinces with the most an harmonious economy and politics - society without conflict and instability n va politically This is exactly what foreign direct investors before investing in any to gh tn locality is also very interested Because political stability will help them feel secure in investment, because FDI investment in Hanoi is increasing, it brings ie p significant benefits to the economy - society of the capital w oa nl The situation of creating conditions for FDI enterprises is always paying d attention and improving the socio-economic efficiency of FDI The Hanoi lu va an People's Committee has issued specific and timely policies to attract FDI ul nf However, development policy is still limited and information on FDI in Hanoi oi lm has not been widely announced This is one of the reasons affecting the efficiency of FDI mobilization and utilization For long FDI projects, if the z at nh policy is not consistent, it will be a big obstacle in investment z b) Infrastructure development and investment support services gm @ The infrastructure of Hanoi is developed synchronously with National highways, m co l highways are built for convenient transportation Hanoi's PCI an Lu Investment support services were promptly solved and disbursed on time through n va ac th si c) System of investment policies and encouragement of foreign investment Normally, administrative procedures of local authorities on investment and investment licensing are the biggest obstacles for investors because administrative procedures are cumbersome, complicated, costly in time and cost However, this is a bright spot in Hanoi because according to the author's survey, experts highly appreciate the administrative procedures of local governments for FDI enterprises All procedures are very favorable to facilitate, clear ventilation lu an This assessment of the City's efforts to reform administrative procedures to n va further improve the efficiency of FDI attraction as well as attract high quality tn to technology and potential houses Good financial resources will improve socio- ie gh economic efficiency This is not only confirmed by the author's survey but also p by the rating of PCI (the evaluation of enterprises on public administrative nl w procedures), Hanoi in 2019 is assessed 2/63 provinces and cities nationwide d oa 2.7 Overall assessment on socio-economic efficiency of foreign direct 2.7.1 Achievement oi lm a) Cause of success ul nf va an lu investment capital in Hanoi area z at nh In order to achieve these results, there is a great contribution of the local government through flexible and flexible economic policies, enabling FDI z enterprises to trust in the city's investment environment and advance effective @ l gm investment and investment activities This is through the city-level PCI evaluation indexes in 2019 that are rated at 2/63 provinces and cities m co The geographical position of Hanoi is advantageous because: firstly it is the an Lu capital of Vietnam, the socio-economic center, the second near the Noi Bai n va ac th si airport airport, the third has very good road and rail traffic convenient, a transit place between regions Infrastructure, transportation are convenient for FDI enterprises to operate more and more effectively As a result, contributions to the budget are increasing b) Limitations and reasons  Limitations lu The organization of state management in the field of FDI is still inadequate, an n va overlapping and has not been paid adequate attention The managers are only tn to interested in granting investment licenses but not really paying close attention to post-licensing such as investment schedule, investment technology, investment gh p ie capital, etc nl w Projects are delayed due to high capital investment, resulting in backlog of d oa projects, loss of urban landscape and waste of resources an lu Investors, due to conflicts with domestic companies, unilaterally break the nf va contract Nowadays, almost 50% of the joint venture capital of foreign investors oi lm ul is, so breaking the contract creates great difficulties for domestic partners Focusing on real estate investment causing market price changes The focus on z at nh real estate will increase Hanoi's land prices, making it difficult for people to buy and creating an imbalance in FDI investment areas z @ gm The environment is heavily polluted due to a number of businesses that have not m co l paid attention to improving waste treatment technologies Technology transfer is still limited, there are still obsolete technologies in Hanoi an Lu n va ac th si