125 “ENHANCING FDI FROM EAST ASIA INTO HANOI”

THE MINISTRY OF FINANCE ACADEMY OF FINANCE THE GRADUATION THESIS Topic: “ENHANCING FDI FROM EAST ASIA INTO HANOI” Internship Place: Hanoi Promotion Agency Student: Nguyen Phuong Dung Class: CQ52/08.03 Internship Supervisor: M.A Cao Phuong Thao Hanoi – 2018 TABLE OF CONTENTS DECLARATION …… .… ACKNOWLEDGEMENT LIST OF ABBREVIATIONS ……… … … … LIST OF TABLES ……………………… …………………… … INTRODUCTION … … … … a Rationale of the study … … … … b Aims of the study … …… .… … c Methods of study …….… .… … d The scope of the study……… … … e Organization of the study … ………….…… … CHAPTER 1: THE THEORETICAL BACKGROUND OF FOREIGN DIRECT INVESTMENT (FDI) & ATTRACTING FDI ………… ………… 1.1 Foreign Direct Investment (FDI)……………… ……….………………… 1.1.1 Definition of FDI…….……………………… …………………… ……… 1.1.2 Characteristics of FDI……….……………… ……………………… …… 1.1.3 Classifications of FDI………………… …………………………………… 1.1.4 Roles of FDI……….………………………… ……………………… …… 1.2 Attracting FDI……….……………………… ……………………… …… 1.2.1 Attracting FDI activities ………… ………………………………………… 1.2.2 Factors affecting the FDI attraction efficiency…… ………………………… 1.2.2.1 Macro factors ……………………………………………………………… 1.2.2.2 Factors from locality ………… …………………………………………… 1.2.2.3 Factors from foreign investors ………… ………………………………… 1.3 Attracting FDI – Experiences & Lessons for Hanoi ………… …………… 1.3.1 Attracting FDI experiences of some localities ………… …………………… 1.3.1.1 Attracting FDI experiences of Bac Ninh ………… ……………………… 1.3.1.2 Attracting FDI experiences of Hai Phong ………… ……………………… 1.3.1.3 Attracting FDI experiences of Quang Ninh ………… …………………… 1.3.2 Attracting FDI lessons for Hanoi ………… ………………………………… CHAPTER 2: ENHANCING FDI FROM EAST ASIA INTO HANOI … … 2.1 Overview of Hanoi & FDI into Hanoi ……………… ………………… 2.1.1 Overview of Hanoi……………………………………………… ………… 2.1.1.1 Natural & Environmental Conditions……………………………………… 2.1.1.2 Socio-Economic Characteristics …………………………………………… 2.1.1.3 Population & Labor Characteristics……………………………………… 2.1.2 Overview of FDI in Hanoi ………….……………………………………… 2.1.2.1 FDI in Vietnam …………….……………………………………………… 2.1.2.2 FDI in Hanoi ………………………… ………….……………………… 2.2 Situation of attracting FDI from East Asia in Hanoi ……………………… 2.2.1 FDI from East Asia into Hanoi ……………………………………………… 2.2.2.1 By countries … ………… …….…………………………………… 2.2.2.2 By sectors ……………………………………………………… ………… 2.2.2.3 By forms of investment …………………………………………………… 2.2.3 Situation of attracting FDI from East Asia in Hanoi … ……… …………… 2.2.3.1 The target of attracting FDI from East Asia in Hanoi … …… …… …… 2.2.3.2 FDI encouragement policies ………….…………………………………… 2.2.3.3 The overall infrastructure plan in Hanoi … …… ………………………… 2.2.3.4 Attracting FDI promotion ………………… ……………………………… 2.3 Evaluating the situation of attracting FDI from East Asia into Hanoi …… 2.3.1 Achievements ….…………………………………………………………… 2.3.2 Restrictions & Causes of restrictions……………………………… ……… 2.3.2.1 Restrictions……………………………… ……………………………… 2.3.2.2 Causes of restrictions………… ……………………………… ………… CHAPTER 3: SOLUTIONS TO ENHANCE FDI FROM EAST ASIA INTO HANOI …………………………………………………………………………… 3.1 Orientations of attracting FDI from East Asia into Hanoi ………………… 3.1.1 Prediction of Socio-Economic context into Hanoi until 2020, vision 2025 3.1.2 Orientations of attracting FDI into Hanoi …………………… …………… 3.1.3 Opportunities & Challenges in attracting FDI from East Asia into Hanoi …… 3.1.3.1 Opportunities……………………………………………………………… 3.1.3.2 Challenges………………… ……………………………………………… 3.2 Solutions to enhace FDI from East Asia into Hanoi … …………………… 3.2.1 Complete the target of attracting FDI from East Asia into Hanoi … ……… 3.2.2 Complete the overall infrastructure plan in attracting FDI from East Asia into Hanoi ……………………………………………………………………………… 3.2.3 Complete the generous policies system………….………………………… 3.2.4 Improve the effectiveness of investment promotion …… ………………… 3.2.5 Increasing the quality of human resources & management capacity of staff… 3.3 Petition…………… ……………………………………………………… … CONCLUSION……………………………………………………………………… REFERENCES……………………………………………………………………… Số lượng & tỉ trọng số dự án, số vốn đăng kí, số vốn thực FDI Hà Nội theo năm từ 2013-2017 Doanh thu nộp ngân sách doanh nghiệp FDI Hà Nội từ 2013-2017 Thu hút đầu tư trực tiếp nước ngồi vào Hà Nội phân theo hình thức đầu tư từ năm 2013-2017 Cơ cấu vốn đầu tư FDI phân theo quốc gia đầu tư đến năm 2017 Hả Nội DECLARATION I hereby declare that this thesis is my own work and effort It has not been submitted anywhere for an award Where other sources of information have been used, they have been acknowledged Graduation thesis author Nguyen Phuong Dung ACKNOWLEDGEMENTS To begin with, I would like to express my sincere gratitude to M.A Cao Phuong Thao, my venerable supervisor, for her meticulous instructions, enthralling advice, generous time for the report preparation and helpful critiques guidance to my final report My thank you is also strongly given to Mr Chu Toan Chung, my internship guide, for his fervent support and assistance in providing me with information and experience in securities area specifically and Hanoi Promotion Agency generally What is more, his commitment and dedication to his job arouse a sense of inspiration to me, which can help me develop my career path at some levels in the future Last but not least, I would like to thank for all the staff at Hanoi Promotion Agency, especially Investment Department for their enthusiastic guidance and recommendations during my internship ABSTRACT This study LIST OF ABBREVIATIONS ANMC21 Asian Network of Major Cities 21 BCC Business Cooperation Contract BOT Build-Operate-Transfer BT Build-Transfer BTO Build-Transfer-Operate DPRK Democratic People's Republic of Korea EU European Union FDI Foreign Direct Investment FIA Foreign Investment Agency FTA Free Trade Agreement IMF International Monetary Fund KIET Korea Institute for Industrial Economics and Trade MNCs Multinational Corporations NKER Northern Key Economic Region PCI Provincial Competitiveness Index PPP Public-Private Partnership OECD Organization for Economic Co-operation and Development R&D Researching & Development SMEs Small and Medium Enterprises TNCs Transnational Corporations UN UNCTAD WTO United Nations United Nations Conference on Trade and Development World Trade Organization LIST OF TABLES Table 2.1: GRDP growth of Hanoi city from 2007 – 2017………………………… Table 2.2: FDI projects licensed in period 2010 - 2016 …………………………… Table 2.3 Ranking of FDI from East Asia into Vietnam … ……………………… Table 2.4 FDI capital in Hanoi by number of projects and registered capital……… Table 2.5 Number of projects and registered capital of 20 main countries, partners Table 2.6 FDI attraction of Northern Key Economic Region from 1/1/1988 to 31/12/2016…………………………………………………………………………… Table 3.1 Sectors with suitable foreign partners in attracting FDI from East Asia ……… LIST OF FIGURES Figure 2.1: Total registered FDI capital in Vietnam by main counterparts (Accumulation of projects having effect as of 31/12/2016)………………………… 3.2.2 Complete the overall infrastructure plan in attracting FDI from East Asia into Hanoi Speed up the progress of construction and approval of plannings, check to periodically supplement and adjust the backward plannings to create favorable conditions for investors in the determination and construction of projects Focus on speeding up the plannings with strategic and national meaning In order to that, the city needs to quickly complete the land plannings and statistics of the vacant land area in the city with specific parameters on land use coefficient, construction density and forms of investment to widely publicize for investors; Solving the problems of infrastructure to create the best conditions for investors Thoroughly and uniformly implement the new provisions of the Law on Investment in the planning work, ensure that sector plannings, domains and products are in conformity with international commitments Completing the land use plannings, publicizing the plannings, creating conditions to accelerate the land clearance speed for investment projects are the most necessary works to create a stable psychology for investors and avoid the difficult situations in short term It is necessary to evaluate and draw lessons from ineffective infrastructure projects that cause waste of resources, and improve the effectiveness of the management in order to minimize losses, ensure quality and technical safety and timely construction progress It is also necessary to maximize resources for investment in infrastructure development, especially non-state budget funds in various forms Develop technical infrastructure to increase the attractiveness of the investment environment, create favorable conditions for investors to implement their projects and investment plans Prioritize investment in infrastructure development from various sources of capital: state budget, social loans, commercial loans, domestic and international bonds, encouraging private capital to invest in state projects In order to create favorable conditions for attracting investment in industrial parks, besides issuance of land-use right certificates to enterprises in industrial parks, it is necessary to ensure that technical infrastructures such as roads, water, communication connected with industrial zones Provide the highest generousness for social infrastructure development projects that are synchronized with the domicile for workers, schools, vocational schools, medical treatment centers, trade and public services Develop a wide, diversified and high quality service system and develop transport infrastructure in the vicinity of Hanoi to improve the quality of service supplying for industrial parks Hanoi can build houses with essential infrastructure for workers as a factor to create favorable conditions to attract large FDI projects in the future Carry out a total revision, adjustment, approval and publicizing of infrastructure plannings up to 2020 as a basis for attracting investment in infrastructure development as well as in transport, energy, Strengthen the planning work, implement them Continue mobilizing all resources, promulgating regulations on encouraging private investments, ensure that upgrade traffic works, telecommunication services, provide electricity and water, and strive not to cause power shortages to production and business activities Focus on attracting investment in a number of projects in the posttelecommunications and information technology sectors to develop new services and the network infrastructure of Hanoi Promote investment in the sectors of culture, healthcare, education, posttelecommunications, maritime aviation Consider issuing some open solutions earlier than the commitment for some service sectors that Hanoi needs Actively cooperate in researching and organizing seminars on the application of new investment forms using foreign investment capital such as BOT, BTO, BT, PPP in construction of technical infrastructure and service supplying It is necessary to exploit a maximum of the resources’ efficiency to invest in the development of infrastructure, especially the resources outside the State budget Use form of public and private partnerships in infrastructure construction (PPP); Prioritize sectors include water supply and drainage, environmental sanitation (solid waste, waste water treatment, ), invest in upgrading and repairing transport systems surrounding the industrial parks and telecommunication, information technology systems 3.2.3 Complete the generous policies system A consistent viewpoint on organizing and planning policies to attract FDI into Hanoi in the coming years is an urgent issue So far, although the city has a clear viewpoint of the role of FDI, considering that domestic capital is decisive, foreign capital is important However, the point of view has not been clearly expressed in the organization and policy of attracting FDI Therefore, the thoroughly understanding of each sector, each area and each locality is not sufficient, leading to a lack of consistency in the implementation of this capital source Therefore, it is necessary for Hanoi to continue to affirm the importance of the encouraged policy to attract foreign investment and exploit to the maximum of this capital to implement the strategy of socio-economic development in the city when the budget is limited With advantages, Hanoi is becoming a promising destination for foreign investors In order to strengthen and maintain the leading role in FDI of Vietnam in the future, Hanoi should focus on the following solutions: Continuously review policies, guiding documents to amend, adjust or remove inappropriate conditions and solutions to ensure the interests of investors in Hanoi In particular, policy makers need to focus on some policies such as: - Policies on FDI (policies on investment support, investment incentive policies ) Foreign investment policy in the coming period still focus on the amount of investment capital, but at the same time, the positive effect (or spillover effect) of FDI capital should be emphasized - Policies on land planning and clearance - Policies on infrastructure development These are the basic policies, contributing to ensure the interests of foreign investors when they come to Hanoi, besides, open policies and highly supportive will make investors interested in long-term investment in Hanoi Monitor and supervise the implementation of the law on investment and enterprises in order to promptly detect and handle arising problems, creating a more favorable environment for FDI attracting and implementation It is necessary because it will create a fair and healthy investment environment for foreign investors looking for investment opportunities in Hanoi, avoiding the bad situations leading to bad investment environment, which directly affect the process of attracting FDI Build the guiding documents for foreign investment as a basis for consideration and issuance of investment certificates Use investment incentives for projects on the welfare facilities construction (housing, hospitals, schools, culture and sports) for laborers working in industrial parks, export processing zones, hi-tech parks and economic zones, ensuring compatibility with existing laws With large projects requiring many workers as well as industrial zones and export processing zones where concentrated large amount of labor, this is absolutely necessary Investors will not have to worry about additional costs associated with labors working for them Rectify the situation of issuing and applying investment incentives in contravention of law to create a no-transparent investment environment, which can make foreign investors, who intend to invest or are investing in Hanoi, turn their backs to consider their investment Intensify the training and dissemination of contents and steps for the implementation of Vietnam's international commitments - Continue to innovate thinking and approaches in the development of foreign investment policy for the coming period In addition to recognizing the foreign investment as an integral part of the economy, the implementation of commitments on integration and regulatory adjustment in line with the rules and principles of WTO will positively influence on attracting FDI Therefore, FDI attraction policies should concern about the situation of globalization and should be developed on the basis of clearly defining the medium and long term goals for coordinated and transitional solutions In the long term, in order to attract large investors, Hanoi needs to improve the capacity in the broad meaning, such as improving investment environment, the level of labor, increasing R & D capacity This goal should be taken seriously now Simplify and publicize administrative procedures and procedures for foreign investment; concentrate on perfecting the “one stop shop” mechanism at the investment certificate granting and management agencies Ensure consistency, procedures in the city, and at the same time, make sure that it’s suitable to specific conditions Strengthen the management capacity of foreign investment by functional agencies; coordination, supervision and inspection mechanisms of investment activities; promptly deal with land, tax, export and import procedures to facilitate foreign investment activities Improve the overall level of the contingent of cadres and civil servants so as to ensure the fulfillment of their tasks according to the provisions of the Law on Investment and the new regulations on decentralization of foreign investment management It is important to address the concerns of domestic and foreign investors about the difficulties of new laws and regulations by resolutely removing unnecessary licenses and procedures, not just about speeding up the general administration reform Especially, urgent removal of irresponsible and corrupted servants from the state apparatus Most importantly, there is no delay in reforming the education and training system to develop human resources Investing in computerization in administrative work to speed up the registration of administrative procedures related to FDI activities This reduces the burden on the administrative staffs, allow them to arrange more specialized work Promote the review and reduction of administrative procedures within the framework of Project No.30 of the government, concurrently complete and supplement necessary utilities and update the database in order to maximize the management software of the foreign investment projects, meet the requirements of enhancing the construction and implementation of the information system on solving administrative procedures and reporting the operational status of enterprises or foreign investment projects, and inter-branch information exchange Authority for Planning and Investment, Tax & Customs & Police Department of Hanoi 3.2.4 Improve the effectiveness of investment promotions Hanoi should continue to expand its investment promotion activities, create an environment for information exchange between domestic and foreign investors, create more credible, official information channels between investors and state management agencies and related agencies for interested investors Strengthen the foreign investment promotion activities, continuously form and add the list of projects calling for FDI and implement investment promotion step by step, includes clearly defining requirements on partners, products, capacity, technological progress, consumption market, project implementation areas, incentive policies, necessary incentives, Plan annual investment promotion programs for specific sectors, areas, partners; Organize seminars, dialogue with investors and exchange experience in investment promotion Promote investment promotion in key markets, potential partners in technology and finance such as Japan, Korea, Taiwan, Well organize marketing system on foreign investment to help investors, enterprises, managers and labor to catch up timely and sufficient information related to FDI including law, policies propaganda and situation of foreign investment in Vietnam Particularly, focus on studying the development trend of the investment capital market in the world; the investment policies of large organizations, countries and corporations in order to have appropriate measures to attract FDI, also focus on attracting capital of large international corporations and countries that have great economic potential, large markets, high technology such as Japan, Korea to improve competitiveness of the economy Especially, pay attention to large, medium and small projects with modern technology - Should have a representative agency to convey investors’ ideas to the Hanoi authority This agency will link the Ministries and Departments of Hanoi and act as an independent agency, providing quality assurance services to the business community - Each year, a common forum should be organized to create opportunities to meet and co-operate between Vietnamese and foreign enterprises, as well as invite senior government officials and representatives of functional authorities for direct dialogue on the issues that foreign enterprises are facing - Supporting and creating favorable conditions for effective implementation of FDI projects which have been granted investment licenses are the best measures to build good image and raise the understanding of foreign investors about attractiveness and competition of foreign investment in Hanoi - Rapidly formulate plans and programs for promotion of specific investment in Hanoi, focus on important sectors, projects and key investment partners - Allocate sufficient state budget for investment promotion activities as a separate expenditure of the city's annual regular spending budget - Setting up of investment promotion funds on the basis of the state budget allocations, which may be deducted from the revenues of FDI, combined with the mobilization of capital contributed by organizations and enterprises - Investigate investment potentials in Hanoi so that appropriate mechanisms and policies can be developed - Renovate and improve the quality of foreign invested propaganda publications in general in order to create the initial attraction of foreign investors - Maintain and develop the cooperation of Departments of Planning and Investment of the cities: Hanoi, Hochiminh, Can Tho, Da Nang, Hai Phong, to exchange experiences, cooperate and remove difficulties in the process of implementing investment promotion, and propose to the goverment measures to attract investment effectively and in line with objectives 3.2.5 Increasing the quality of human resources & management capacity of staffs Apply measures to apply the amendment and supplement of some articles of the Law on Labor to the reality to prevent illegal strikes and improve labor relations Intensify inspection and supervision of the observance of the law on labor in order to ensure the working conditions and living conditions for laborers; improve the understanding of Law on Labor through the dissemination, propaganda and education of law for laborers and employers in FDI enterprises, make sure that policies and laws on labor and salary are fulfilled seriously - Implement supporting programs and projects for laborers working in industrial parks, especially the dwelling houses and the living conditions of laborers - Continue to strengthen the training and retraining of human resources to meet the development needs in the new period, including managers at all levels and technical staff Particularly, focus to the work of training to raise the political quality, morality and professional qualifications of the national servants at all levels, and strongly adjust the personnel, especially the key personnel refers to foreign investment activities Organize the training of skilled workers according to the programs suitable to the needs and prospects using this labor source Continue to simplify procedures and reduce entry visa costs, facilitate income and living conditions to attract technical staffs, scientists, and foreign business executors come to work The rights and obligations of employees working in foreign invested enterprises must be clearly defined from the viewpoint of protecting the legitimate interests of the workers, prevent the situation of violation of material, moral responsibilities and human rights of workers Quickly unify the policy on salaries and personal income tax among domestic and foreign employees In the coming time, Hanoi needs to continue building more vocational schools for labor, focusing on sectors such as industry and high technology To this, Hanoi needs to have appropriate support policies In order to improve the quality of management staff, Hanoi needs to train and foster capacity of building management and capital development for leaders and specialists at all levels in the period 2015-2020 The goal is to equip urban professional leaders at all levels with basic knowledge, some leadership skills, the management and executive skills of the tasks of the Capital construction planning Ensure that by 2020, 100% of the civil servants will implement the tasks of urban planning management, investment, exploitation and construction management, and using and developing urban infrastructures management, environmental management, architecture and urban landscapes management Objects of training and retraining are cadres and civil servants leading the People's Committees of Hanoi, including the city presidents, vice presidents, leading officials, professional officials, professional agencies, advisors of the Department of Construction, Department of Planning and Architecture, urban management departments, Department of Industry and Trade, constructing servants, Major sectors of theoretical (domestic and international) training include: urban and rural development planning, infrastructure development planning, urban environmental planning and problems dealing with global climate change, urban construction management; urban design and urban heritage preservation; land, housing and real estate markets management; urban construction investment capital; policies and solutions on capital for urban construction and development In addition, training should be linked to the sectoral and local manpower planning Continue to bring the management staff of the city to exchange management experience with some provinces in Vietnam as well as other successful regions of the world In order to improve the training and retraining efficiency of officials in general and FDI managers in particular, firstly, the social demands must be respected and staff training must be closely linked to societal needs Actively socialize training is the basic theoretical solution; renovating the management is the main solution of the training and retraining process, changing technical equipment is a professional solution, enhancing resources for training and fostering is an ensuring solution, supporting and continuing to renovate the mechanisms and policies is a solution to improve the legal framework, One of the specific solutions is the conduct of comprehensive investigation and research about FDI and then accurately determine the needs and objectives of training and fostering with specific steps Along with that, priority is given to the selection of young and enthusiastic staffs to send to training and fostering at prestigious universities in Vietnam and abroad, in association with the specific strategy, planning and promotion - Reform policies for all three objects: workers, learners and trainers Along with that, find a way to bring into play the role of the Department of Internal Affairs in planning and supervising this work 3.3 Petition Below are some recommendations to both Ministry and Department of Planning and Investment: Quickly finalize and amend the Law on Investment and legal documents guiding the Law on Investment in a consistent way with the practicality and in line with the specialized law provisions (Enterprises, Environment, Land, Construction, ) in which additional regulations: - Specify clearly the proportion of capital contributions that implementing project on the total registered investment capital and the disbursement time to ensure the feasibility of the project - Regulations on the minimum capital contribution ratio of the foreign investors in the total registered investment capital for each investment sector in order to bring into play the strengths and potentials of FDI capital exploitation Currently, most other sectors not require legal capital, owner's equity (except for projects that use land, real estate business, banks), so it leads to the tendency for foreign investors to register small amount of investment capital that not meeting the target of attracting capital and receiving modern and advanced technology transfer - Regulations on coordination mechanism between relevant agencies from central to local in management and supervision after licensing; the responsibilities and obligations of investors and especially the sanctioning of specific violations should be strong enough to help reduce the workload of state management agencies and increase the efficiency and transparency of the investment environment Finalize and improve the quality, speed of access and stability of the national information system on foreign investment; create a mechanism for sharing related information for FDI enterprises, FDI-capital economic organizations and foreign investors participating in economic organizations at the enterprise registration information portal in order to improve the efficiency of state management, save cost and time in professional operations and supervision management activities after the investment registration Review and supplement the information field of "overseas Vietnamese" in the national systems of investment management, business registration, tax, customs, labor administration, ; connect and share information (electronic) between state management agencies in order to promptly grasp difficulties and obstacles to support and guide the settlement as well as serve the reporting work Assisting and coordinating with the city to effectively implement the investment promotion program in 2018 and the following years For large projects that subject to the government's approval, the Ministry shall consider and support investors and the city to speed up the licensing process and ensure compliance with the provisions of law Besides, there are some recommendations in attracting FDI from strategic investors (Japan, Korea) as followed: Recommendations in attracting FDI from Japanese investors into Hanoi - The recent concern of Japanese investors is not only the specific preparation of industrial zones infrastructure for Japanese enterprises but also the services supporting the investment process for them such as: Japanese SMEs with small resources, often looking for investment locations can provide many supporting services that help investors operate effectively, make sure that investors will have the most favorable business, especially in the investment and after-investment periods supporting - Japanese people have high community, so they will prioritize places with synchronous services that are suitable for Japanese lifestyle or for Japanese investors - Japanese SMEs are highly specialized, producing only one or some details to provide one or some specific types of products, which are often one part of the production chains So, they requires the support of the other parts of production chain In addition, the pressure of reducing costs also requires Japanese enterprises to increase the localization rate of raw materials and components Therefore, Japanese enterprises will prioritize the selection of countries and regions with developed supporting industries - Japanese companies are mainly in the fields of industry, high technology and precision mechanics, so they need to have disciplined and skilled workers, especially with ones knew Japanese - There should be clear policies and guidelines relating to preferential treatment, administrative procedures and solving promptly problems arising in the operation process of enterprises In addition, language is also an important issue for attracting FDI from Japan Japanese investors want Hanoi to intensively train human resources that can use Japanese to provide labor for Japanese enterprises Recommendations in attracting FDI from Korean investors: - For investors, the investment environment and the law, the administration need to be clear For Vietnam in general and Hanoi in particular, the highly regarded factor is the stable political and socio-economic situation However, administrative procedures still have many problems Tax, labor and licensing issues have new policies and circulars every year that make enterprises feel insecure Therefore, reforms are needed to limit the frequent changes in investment policy - Work permits are an important issue for Korean investors South Korean representative said that enterprises have proposed to ease the conditions on work permits Many Korean managers have been in Vietnam for a long time, but when they change their work permit, they can not extend their stay in Vietnam Thus, this policy should only be applied to those who have recently applied for a work permit, for those who have been in Vietnam for a long time should have more favorable policy - Hanoi has many advantages of the capital so it is necessary to have training programs for many technicians because this force is very shortage CONCLUSION Nowadays, FDI plays an important role in the socio-economic development of Vietnam in general or Hanoi capital in particular This source of capital not only helps to promote socio-economic growth and development, but also makes a shift in structure of economic and labor, technology innovation and job creation In the 25 years of opening up to attract FDI, Vietnam has had very important partners contributing to the development of the economy of Vietnam and especially of Hanoi, one of them is East Asia Therefore, the attracting FDI capital from East Asia into Hanoi is extremely necessary Hanoi-the Capital of Vietnam-is one of the key localities of the Northern Economic Region The city has provided many solutions to attract FDI from East Asia and has achieved certain successes However, weaknesses still remain In the condition of economic integration and the trend of globalization, Hanoi should apply policies in a flexible way, raise the advantages and potentials of the city to attract more effectively FDI capital into the city Measures that require greater effort and the unanimous consent of the relevant agencies and organizations to make the Capital the ideal destination for investors from East Asia This thesis presents the contents of FDI activities from East Asia in Hanoi and analyzes the situation of this capital source in recent years Thereby, it outlines the achievements and restrictions that still exist and causes the limitations of the attracting FDI process I personally have contributed some solutions to overcome the remaining constraints in order to attract more FDI from East Asia into Hanoi ... enhace FDI from East Asia into Hanoi … …………………… 3.2.1 Complete the target of attracting FDI from East Asia into Hanoi … ……… 3.2.2 Complete the overall infrastructure plan in attracting FDI from East. .. investment (FDI) Chapter 2: Enhancing FDI from East Asia into Hanoi Chapter 3: Solutions to attract FDI from East Asia into Hanoi CHAPTER 1: THE THEORETICAL BACKGROUND OF FOREIGN DIRECT INVESTMENT (FDI) ... contribute to improve solutions in attracting FDI from East Asia into Hanoi in the future, I decided to select the topic "Enhancing FDI from East Asia into Hanoi” as a graduate thesis b Aims of the