Attracting foreign direct investment in real estate sector in Hanoi

When planning a project to attract FDI capital, the Ministry of Planning and Investment needs to focus on the following issues:

It is necessary to focus resources on building modern hydroelectric projects with large capacity to meet the increasing needs of society.

Pay attention to applying modern technologies in all economic sectors. At the same time, pay attention to reasonable economic policies to reduce costs and improve the quality of telecommunications networks, open high-bandwidth and high-capacity electronic transaction portals.

Renovating the road traffic system, especially focusing on attracting investors to upgrade projects, building important roads, urban main axes, main streets and traffic intersections in the city as well as belt roads (ring roads 2 and 3), overpass systems, modernizing Noi Bai international airport, renovating Gia Lam domestic airport... Focusing on expanding the traffic system at the gateways of the capital, renovating and upgrading a number of radial national highways and radial expressways including Lang - Hoa Lac, Hanoi - Thai Nguyen, Hanoi - Lao Cai...

Ensure adequate water supply for residents and investors in all areas of the city. Currently, one of the concerns of apartment tenants is water loss, and apartments often suffer from severe water shortages.

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Hanoi needs to focus on synchronously upgrading infrastructure, especially non-state budget capital. Develop and promulgate mechanisms to encourage non-state economic sectors to participate in developing infrastructure projects with certain preferential policies of the state, attracting economic sectors to enthusiastically participate. In particular, the ratio between state capital and private capital in infrastructure construction projects - the type of projects that require state participation - is also considered the key to creating the attractiveness of these projects.

A complete and strong infrastructure system will help Hanoi easily achieve its economic and social goals, maintain a fast and stable growth rate and become an international economic transaction center, contributing greatly to attracting FDI capital flows.

3.2.4. Strengthen investment promotion

The purpose of investment promotion to countries around the world is to enhance the image of Vietnam in the investment community, through introduction and promotion activities so that foreign investors see Vietnam as an attractive and favorable investment destination with the potential for strong development in the future. Investment promotion activities act as a bridge to attract foreign investors to Vietnam, helping them have a more comprehensive view as well as better understanding of the investment environment in Vietnam. Therefore, in order for investment promotion to be highly effective, we first need to build specific investment promotion programs, action programs in a focused and effective manner, focusing on potential partners, especially large economic groups TNCs. In addition, it is necessary to improve the quality of investment seminars, so that they truly become meeting places, information exchange, answering questions, and explanations so that foreign investors can better understand and properly implement the State's policies. In addition, it is necessary to upgrade the electronic information page on foreign investment, the website directory of domestic enterprises that foreign investors can visit to conduct business cooperation, opening up many investment opportunities for foreign partners.

At the same time, our government and state also need to actively participate in international organizations, bilateral and multilateral cooperation, become an active member of ASEAN, APEC, ASEM, OECD and most recently the WTO. During visits to friendly countries, state leaders also introduce attractive investment opportunities to foreign investors. These positive attitudes will be the best invitations for

foreign investors to a country of Vietnam with great development potential and great investment opportunities.

In the real estate sector, the state management at all levels from the central to local levels must actively introduce planning projects calling for capital to foreign investors. At the same time, coordinate with relevant ministries and branches to organize investment cooperation forums and investment exhibitions such as the recent foreign direct investment exhibition (Vietnam Forinvest 2005 - in Hanoi on November 2-6, 2005) to create the best opportunity for international investors to access information with high accuracy and reliability so that they can make the right decisions.

3.2.5. There is a mechanism to support businesses investing in real estate.

To encourage the development of the real estate market requires not only efforts from the government but also close cooperation with domestic and foreign investors in this field. The establishment of the Hanoi Real Estate Investors Association is a key factor, tightening the cooperation between the Vietnamese government and investors for a healthy, stable development of the Vietnamese real estate market and for the benefit of both parties. Currently, Ho Chi Minh City has the Ho Chi Minh City Real Estate Association (HOREA) which is very active. In Hanoi, the amount of capital investors pouring into the real estate market is increasing, the number of projects is also increasing. An association of real estate investors in Hanoi will take on many roles:

- Unify opinions of real estate investors and represent them to present to competent authorities questions, wishes and suggestions of real estate investors regarding current policies and regulations.

- Systematically collect the latest information on legal documents and regulations, domestic and foreign real estate market situation as well as real estate investment opportunities and provide them to investors.

- Achieve a commitment on maximum or minimum real estate purchase and rental prices to avoid devaluation or sudden rental price increases of a series of buildings at the same time, keeping the market stable.

- Combine training of consultants, real estate appraisers, real estate managers... for investors

- Organize seminars for investors to exchange information and business and management experiences, creating an intimate and cooperative atmosphere between investors and professional real estate management and business companies.

The Real Estate Investors Association can also publish its own magazine or brochure, so that members can save on advertising costs. For example, it can publish books introducing office buildings, commercial center apartments or hotels operating in Hanoi with service information or prices, technical standards and contact addresses of each building.

The Ministry of Natural Resources and Environment needs to coordinate with the General Statistics Office and a number of other relevant agencies to organize a survey on the supply and demand of housing, apartments and income in Vietnam to have a basis for balancing supply and demand and assessing the potential of the Vietnamese real estate market in the future, from which to propose appropriate policies to regulate the real estate market.

In terms of finance, to promptly support the capital mobilization of foreign direct investors, Vietnam should allow the issuance of real estate certificates. This is a new form of capital mobilization but has not yet been applied in our country, contributing to creating a channel to exploit capital sources among the people. It also demonstrates the connection between the financial market and the real estate market. Through the stock market, investors will have the opportunity to promote their image, and market activities will be more transparent and stable. Issuing real estate certificates, foreign investors will be more secure, because there are banks to control and disburse according to the project implementation progress. Form of capital contribution by price

Land use rights should also be applied. Accordingly, farmers and individuals and organizations whose land is recovered in the project can choose to be compensated with money and houses or resettlement land or contribute capital to the project. Creating a link between the real estate market and the financial market like this will promote the development of the real estate market, increasing the attractiveness of Vietnam's real estate in general and Hanoi in particular to foreign investors.

3.2.6. Measures to promote real estate projects to operate effectively in the market

Forming a transparent and complete real estate market will help provide information to buyers and sellers. According to the Law on Real Estate Business, organizations and individuals doing real estate business when selling, transferring, leasing, or leasing real estate must go through a real estate trading floor. At the same time, organizations and individuals who do not do real estate business but exchange or buy and sell should also do so through the trading floor. The formation and development of real estate trading floors will make the information system on the real estate market more transparent. The State will play a greater role in managing and issuing appropriate measures and laws to regulate the activities of this market, reducing the risk of corruption, bribery, and virtual fevers in land and housing due to the impact of speculative activities in recent years. At the same time, when transactions are conducted through the real estate trading floor, foreign investors will have a more comprehensive and clearer view of the current state of operations and business opportunities in the Vietnamese real estate market, thereby attracting more investment capital flows from investors around the world. The formation of trading floors is very necessary and needs to be implemented as quickly as possible. However, after 2 years of official operation, the Hanoi Real Estate Trading Center has not had any real estate projects advertised here, on the one hand because investors do not list their real estate projects on the floor, on the other hand, to be able to form a true trading floor requires a database.

relatively complete real estate projects. In the immediate future, the center needs to invest in technology, and it is necessary to require the project to be publicly listed from the time the competent state agency allocates land or leases land. Then the progress of project implementation according to the approved roadmap must continue to be made public until the goods are listed on the transaction center.

Previously, the listing model of the trading floor was preferred by brokerage firms, however, for foreign customers and businessmen, this model took a lot of time and product information was limited. Recently, the model of posting information online has appeared and this model is increasingly showing its advantage in real estate transactions with the appearance of hundreds of different websites. The application of information technology to transmit real estate information not only helps domestic and foreign customers but also significantly reduces business costs for businesses. This is a point that real estate investors and businesses and the government need to pay attention to in order to coordinate to promote the operation of real estate business projects more effectively.

In addition, Vietnamese leaders also need to pay attention to macroeconomic measures such as stabilizing interest rates and inflation, promoting GDP growth, and developing other financial markets at the same time such as the stock market, insurance market, etc. because these markets have a direct impact and are related to the development of the real estate sector and to attracting foreign investment in the real estate sector.

CONCLUDE

According to real estate business circles, foreign investors have never paid as much attention to the Vietnamese and Hanoi real estate markets as they do today. The real estate market is a part of the social market. Therefore, the development of this market will have a strong impact on the development of the capital market, the labor market, the goods market and in general, the economic development of the whole city, meeting the diverse needs of the people and thereby improving people's lives. In line with the trend of FDI capital flows into this market worldwide, the Hanoi real estate market has truly been a "hot" destination in recent years. With its accession to the WTO and promising economic development prospects, Vietnam, especially the capital Hanoi, will be an attractive destination for foreign investors and increasingly attract more real estate projects in the near future.

In this thesis, I hope to provide an overview of the development of Hanoi's real estate sector in recent years, summarize some successes as well as limitations of foreign-invested real estate projects in recent times and propose causes and some solutions to increase foreign investment attraction in Hanoi's real estate sector.

I would like to express my sincere thanks to Master Pham Thi Mai Khanh and all the teachers of Foreign Trade University, Ministry of Planning and Investment, my brothers, sisters, friends and colleagues who helped me complete this graduation thesis.

LIST OF REFERENCES

Vietnamese:

1. Ministry of Planning and Investment (2007), Report on the implementation of foreign direct investment in Vietnam and Vietnam abroad in the period 1988-2007, Hanoi

2. Ministry of Planning and Investment (2007), Vietnam Urban Development Strategy for the period 2010-2020, Hanoi

3. Ministry of Planning and Investment (2007), Investment Newspaper, No. 7, 22, 29, 36, 65, Hanoi.

4. Dr. Nguyen Minh Hoang (2006), General principles of asset valuation and enterprise value, Statistical Publishing House - page 64, Hanoi.

5. Land Law No. 13/2003/QH11, Chapter 1, Article 4, Clause 20

6. Land Law No. 13/2003/QH11, Chapter 1, Article 4, Clause 23

7. Land Law No. 13/2003/QH11, Chapter 1, Article 4, Clause 24

8. Land Law No. 13/2003/QH11, Chapter 1, Article 9

9. Investment Law No. 59/2005/QH11, Chapter 4, Article 36

10. Investment Law No. 59/2005/QH11, Chapter 4, Section 1, Article 52

11. Law on Real Estate Business No. 63/2006/QH11, Chapter 1, Article 4, Clause 1.

12. Law on Real Estate Business No. 63/2006/QH11, Chapter 1, Article 4, Clause 2

13. Law on Real Estate Business No. 63/2006/QH11, Chapter 1, Article 4, Clause 3

14. Real Estate Business Law No. 63/2006/QH11, Chapter 1, Article 4, Clause 4

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