TRADE-TOURISM-INVESTMENT
Hanoi the new Emerging Hub for Investment

By Kirtan Bhana

30 October 2024
For over a thousand years Hanoi has been the heart of Vietnam, seamlessly blending its rich historical legacy with the rapid modernization introduced through the Doi Moi economic reforms 40 years ago. This transformation has turned Hanoi into a dynamic Asian metropolis, while it remains deeply connected to its cultural heritage. Aptly called the “City of Peace,” Hanoi is strategically located in the Red River Delta, allowing it to serve as an influential center for growth and exchange.

“Hanoi, the capital of Vietnam, stands as the nation's political, administrative, cultural, scientific, educational, and economic hub, fueling growth across the Red River Delta and beyond,” said Ms Nguyen Thi Tuyen, Standing Deputy Secretary of the Hanoi Party Committee, who led a delegation to South Africa for the Vietnam-South Africa Investment, Trade, and Tourism Promotion 2024 event in October.

Ms Nguyen underscored Hanoi’s recent socio-economic achievements, including a significant increase in foreign investment. “In recent years, the city has achieved remarkable progress in socio-economic development and attracted robust foreign investment. In the first nine months of 2024, Hanoi's gross regional domestic product (GRDP) increased by 6.12% compared to the previous year. Total budget revenue reached VND 376 trillion, meeting 92.1% of the year’s target and reflecting a 22.2% rise year-on-year. Of this, domestic revenue exceeded VND 354 trillion, accounting for 93.5% of total revenue and rising by 23%, while revenue from e-commerce reached VND 28.7 trillion, an increase of VND 8.6 trillion, or 42%, from 2023. Retail sales and service revenue grew by 10.5%, while foreign direct investment (FDI) inflows surpassed USD 1.5 billion. The total two-way trade turnover reached USD 14.44 billion, up 16.8%. Moreover, tourist arrivals to Hanoi totaled 4.561 million, with 3.156 million international visitors, marking a remarkable 41.5% growth from the previous year,” she stated, highlighting the importance of strong ties between Vietnam and South Africa.

Since establishing diplomatic relations in 1993, South Africa has emerged as Vietnam’s primary trading partner in Africa. Technology products and machinery rank among Vietnam's top exports to South Africa, while South African fruit is a main import for Vietnam. Both Deputy Secretary Nguyen and Adv. Mtho Xulu, President of the South African Chamber of Commerce and Industry (SACCI), expressed enthusiasm for expanding trade exchanges, recognizing the vast potential for commerce between the two nations.

“In just the first nine months of this year, statistics indicate that the number has reached more than USD 1.4 billion, surpassing the existing record of our yearly trade exchange,” noted Ambassador Hoang Sy Cuong of Vietnam to South Africa. “Despite such tremendous achievements, we have to admit that the economic link and cooperation between Vietnam and South Africa still hold a large room and enormous potentials which await us to unlock.”

Ambassador Hoang highlighted Vietnam’s impressive economic growth driven by nearly 40 years of comprehensive renewal and reform. With a population of 100 million, Vietnam’s annual economic growth has averaged over 6% for the last two decades, bringing its GDP to USD 430 billion in 2023 and positioning it among the world’s 40 largest economies. This growth, he explained, is attributed to sound economic policies and an emphasis on global integration. “Since we got the first modest FDI projects in 1988, foreign investment into Vietnam has unceasingly increased. As of September 2024, 151 countries and territories have brought to Vietnam 41,314 projects, and total registered capital of USD 491.71 billion, of which only last year’s number was USD 36 billion, showcasing a trendy wave of foreign investment continuing to pour in the country,” he shared. Vietnam’s high trade openness, with import-export activities nearly doubling its GDP, emphasizes its role as a thriving trade hub, boasting a trade volume of USD 683 billion in 2023.

In addition to trade, tourism is a rapidly growing sector for Vietnam, one of the top six countries in terms of international tourism growth. Despite setbacks during the COVID-19 pandemic, the industry has rebounded quickly, with international visitors reaching 12.6 million in 2023 and projected to climb to 17-18 million by the end of 2024.

The discussions at the promotion event in South Africa illustrated how Vietnam’s socialist governance model prioritizes the wellbeing and development of its people, a philosophy that has been responsible for progress in multiple sectors. The event highlighted the value of social cohesion and indigenous knowledge in shaping sustainable growth, especially within the travel, tourism, and hospitality sectors.

The Vietnam-South Africa Investment, Trade, and Tourism Promotion 2024 event showcased Vietnam as a secure, stable, and lucrative destination for foreign investors, highlighting the benefits of a strong socio-political framework and proactive reforms. As Hanoi steps into a new era of global engagement, its partnerships with nations like South Africa promise to create vibrant opportunities for trade, tourism, and cultural exchange, enriching both countries and advancing mutual goals on the world stage. - TDS