Hanoi needs US$160 billion to become a metropolis

VietNamNet Bridge – To become a modern urban city with five satellite cities and per capita income of $12,000/person by 2030, Hanoi needs $160 billion within the next ten years.

Hanoi Party Committee on April 7 considered the strategy for social and economic development to 2030. According to estimates, Hanoi will have 8 million people by 2020, with urbanization rate of 54 percent; 9 million people by 2030, with urbanization rate of up to 70 percent.

The capital city will comprise a central city with five satellite cities, plus 13 towns. In addition, some urban areas will be developed within a radius of 50-60km around Hanoi to serve the capital’s development, including Hai Duong, Hung Yen, Phu Ly, Hoa Binh and Viet Tri.

Hanoi has set high economic growth targets from now to 2030, specifically annual gross domestic product (GDP) of 9-10 percent from 2011 through 2020 and 7.5 to 8.5 percent in 2021-2030. Per capita income is expected to reach $5300 by 2020 and $12000 by 2030 (per capita GDP in 2008 was only $1700 for Hanoi).

To realize these goals, Hanoi will need up to $60 billion for the 2011-2015 period and $97-98 billion for the 2016-2020 period. Hanoi authorities have introduced many measures to raise capital from non-state enterprises (48 percent), the state budget (16 percent) and state-owned enterprises (9-12 percent).

The city will issue policies to mobilize capital, such as investment incentives for hi-tech parks and luxury services, plus land management policy and raising investment capital from land.

Nguyen Xuan Chinh, chief of Hanoi Industrial – Export Processing Zone Management Board, noted that the city needs clear measures to raise capital for the ambitious plan. The city aims to finalize industrialization in the next five years, but now suffers from a shortage of capital for industry and construction. The pace of infrastructure development is also slow because it has to check hundreds of projects.

Nguyen Van Thanh, Party Chief of Long Bien district, observed that Hanoi must give top priority to developing technical infrastructure and carrying out administrative reforms to attract investors.

By Vietnamnet