Hanoi Assignment

3. Main causes.

3.1. Fresh ground

The first thing that Hanoi is now lack of is fresh ground. Hanoi has hundreds hectares of industrial zones as well as industrial areas which have leveled off for clearance by the impact of changing in policies, while they have several thousand hectares of farmland which are lacking "base plan" to deploy.

3.2. Competitiveness

The second reason leads to this situation is that Hanoi’s investment environment is less competitive compared to other locals. According to a survey on investment environment has been announced by GSO and World Bank recently, Hanoi is one of the locals that have less friendly investment environment. The competitiveness of Hanoi is always low, even lower than the mountainous province - Yen Bai. Hanoi’s mechanism is still slowly innovating. There are also a lack of dynamism, creativity as well as too much depend on advantages of being Vietnam’ capital city from management agencies and companies as well. Through years of development, until now, Hanoi still has too few products which have strong brand as well as big companies, etc.

4. Solution

4.1. Focusing on improving and removing unnecessary administrative procedure.

Hanoi needs to create the best conditions for investors about administrative procedures, infrastructure in process development and project development by simplifying the administrative ones in the evaluation and licensing. Besides, the city should have a preferential treatment mechanism to encourage foreign direct investors, concentrate resources on the construction and upgrading of infrastructure projects in the area with many other capital sources to create favorable conditions for the synchronous and sustainable development of industrial zones.

4.2. Facilitate projects with foreign