The Capital Law No. 39/2024/QH15, passed by the National Assembly on June 28, 2024, and taking effect from January 1, 2025, includes provisions on attracting strategic investors in Article 42 and on preferential mechanisms for these investors in Clause 5, Article 43.
Director of the Hanoi Department of Finance Nguyen Xuan Luu.
Specifically, Clause 7, Article 42 stipulates that the Hanoi People's Council shall provide detailed regulations on Clauses 1 and 2 of this article in line with the Capital's development priorities.
Additionally, Point d, Clause 5, Article 43 allows the Hanoi People's Council to decide on other incentives and support measures to meet urgent needs in attracting strategic investors.
Hanoi has set a vision to become a "Civilized – Cultured – Modern" capital, leading in economic, social, and scientific-technological development. To achieve this vision, the city requires substantial resources, particularly from investors with strong financial capabilities, advanced technologies, and proven management experience.
The 2024 Capital Law provides a solid legal foundation for attracting such investors. Clause 1 of Article 42 outlines a list of priority sectors and industries for strategic investment. This provision helps clearly define Hanoi's investment focus, ensuring efficient and targeted allocation of resources.
Clause 2 of Article 42 specifies the conditions that a strategic investor must meet. These include detailed criteria regarding financial capacity, technological competence, relevant experience, and commitments to training, localization, and alignment with project goals.
These requirements enable Hanoi to select high-quality investors and avoid ineffective or speculative investments. Clear criteria also form the basis for robust investor screening, evaluation, and supervision.
Delegates at the session.
According to the draft resolution, the list of priority sectors for strategic investment under Clause 1, Article 42 includes the development of satellite urban areas; urban and interregional mass transit systems such as urban railways; and high-tech zones with a minimum investment capital of VND 25,000 billion (approximately US$980 million).
Environmental pollution treatment projects with a minimum capital of VND 12,000 billion (US$470 million) are also included. Other priority sectors comprise the manufacturing of semiconductors, integrated circuits (ICs), flexible electronics (PE), advanced batteries, new materials, new energy, clean and renewable energy, all with investment starting from VND 15,000 billion (US$590 million).
In addition, the resolution prioritizes development and manufacturing of railway locomotives and carriages, signaling and traffic control systems, and smart city technologies with investment capital from VND 10,000 billion (US$390 million) upward.
Article 3 of the draft resolution sets out specific conditions for strategic investors as defined in Clause 2, Article 42. For projects mentioned in Clause 1 of Article 1 of the resolution, investors must have charter capital of at least VND 5,000 billion (US$195 million) or total assets of at least VND 20,000 billion (US$780 million).
Priority will be given to investors with technology and experience in similar projects with comparable scale. For projects listed in Clause 2 of Article 1, the investor must have charter capital of at least VND 2,400 billion (US$94 million) or total assets of at least VND 10,000 billion (US$390 million), with preference again given to those with relevant technology and experience.
At the session, all 83 attending delegates voted unanimously to pass the resolution detailing Clauses 1 and 2 of Article 42 of the Capital Law concerning the attraction of strategic investors.