General Assessment of Hanoi's Natural and Socio-Economic Conditions Impacting on the Activities of TNCs.

develop it to its full potential. Only when internal strength is developed can it absorb and transform external strength into internal strength, and the strength of internal strength can be multiplied. In the current economic conditions of the country and the world, we want to develop

To have internal strength, we need to know how to take advantage of external factors, creating conditions to strengthen the country's internal strength.

Internal strength is the decisive factor in the country's development. We can only continue to innovate, open up and integrate, and have policies to mobilize

Mobilize all human, material and financial resources to the maximum extent, practice thrift, fight waste, corruption... External forces play an important role in influencing the trend and results of economic development and movement in our country. External forces have both positive and negative aspects. The positive aspect of external forces is that they have the effect of promoting, supporting and creating conditions for the movement and development process. The negative aspect of external forces cannot be ignored, they can cause difficulties, obstacles, even sabotage, and deviate the movement and development of the country. Implementing openness, enhancing international exchanges, and accepting and using foreign investment capital from TNCs requires us to both maximize its positive effects, transform and turn external forces into internal forces for development, and at the same time limit negative consequences.

to the maximum extent.

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Internalizing external forces and modernizing internal forces can be understood as the process of absorbing and transforming external forces into internal forces, making internal forces be promoted, increasingly strengthened and developed. In that process, people are the decisive factor. Vietnamese people, national traditions and Vietnamese revolutionary traditions are the central factors of Vietnamese internal forces. Vietnamese people who are developed with knowledge, culture, patriotism, and know how to promote their traditions and national identity will be people with enough creativity, absorb advanced achievements of humanity, turn them into their own, master the country and lead the country to develop. Therefore, investing in human development, taking care of education and training, nurturing personality and raising the intellectual level of the people, developing human resources, science - technology, culture, preserving

Preserving and promoting the national identity is the most important investment activity to accelerate industrialization, modernization and national development, ensure internalization of external resources and modernization of internal resources, and effectively receive and use investment from TNCs.

Chapter 2‌‌

Current status of operations of multinational companies in Hanoi in recent times

2.1 . General assessment of Hanoi's natural and socio-economic conditions affecting the activities of TNCs.

2.1.1. Factors of natural conditions of Hanoi

* About geography and administration :

Hanoi is located in the center of the Red River Delta, bordering 5 provinces: Thai Nguyen to the North; Bac Ninh and Hung Yen to the East; Vinh Phuc to the West; Ha Tay to the South.

Hanoi includes 14 districts and counties: Tay Ho, Ba Dinh, Hoan Kiem, Hai Ba Trung, Dong Da, Thanh Xuan, Cau Giay, Hoang Mai, Long Bien, Soc Son,

Dong Anh, Gia Lam, Tu Liem, Thanh Tri, including 8 towns and 220 wards and communes. Hanoi has a total natural area of 92,097 hectares, equivalent to 0.28% of the country's area. Of the total natural land area, rivers and lakes account for 5.96%; rocky mountains account for 0.13%.

As the capital of the Socialist Republic of Vietnam, Hanoi is also the national political and administrative center, a major center of culture, science, education, economy and international trade of the whole country. The increasingly improved transportation system has helped Hanoi to easily communicate with other localities in the country. Hanoi has favorable conditions to promptly access information and scientific and technological achievements of the world, to participate in the international division of labor and easily integrate into the development process of the international economic development triangle.

* About terrain :

The topography of Hanoi has a geological structure that is not as complex as many other areas in the North of our country. Most of the area of Hanoi and its surrounding areas

is a plain, gradually sloping down from Northwest to Southeast in the general direction of

Northern terrain, and also in the direction of the Red River flow.

The North of Hanoi is a low mountainous area, the Soc Son range with the highest peak being Chan Chim at 462m. The West of Hanoi and its vicinity is the Ba Vi range with the highest peak being Vua Peak at 1270m. In the inner city of Hanoi, most of the land area is considered unfavorable for construction due to the phenomenon of underground water accumulation, subsidence, land cracks, landslides, river slides, weak ground structure, etc. Some inner city land areas are low-lying, swampy areas due to the process of swamping, so the cost of investing in infrastructure for the projects is very high. For the above reasons, Hanoi is considered an unfavorable location for investing in high-rise architectural projects.

* About climate:

Hanoi's climate is characterized by a tropical monsoon climate, with a location from 20 0 50 to 21 0 23 north latitude from 105 0 44 to 106 0 02 , east longitude with 2 main seasons in a year (hot season and cold season).

Hanoi's average annual air temperature is quite high (24 0 C). The average temperature difference between months of the year is up to 12.5 0 C. The minimum temperature

The maximum temperature can reach over 40 0 C but rarely occurs. The minimum air temperature can drop to 5 - 7 0 C, lasting 7 to 12 days, the average humidity is from 80% to 88%. With the weather changing according to 2 distinct seasons. The average annual rainfall is about 1,250 - 1,870mm. The number of rainy days in a year is 140 days, unevenly distributed between the 2 seasons.

Thus, it can be seen that Hanoi's natural conditions are very favorable for

Investing in developing economic sectors in general, however, if investing in developing high-rise buildings, it must be surveyed very carefully to limit costs when dealing with geo-stratigraphy.

* On land and mineral resources:

Hanoi is located in the center of the Red River Delta, with a concentration of very fertile alluvium suitable for many types of tropical plants. If rivers, lakes and residential land are counted, the remaining area is only 68,796 hectares, accounting for 74.9% of the natural land area.

Of which, there are still 8,370 hectares of unused land. In general, Hanoi's total land fund is not large and needs to be calculated to be used thoroughly and economically.

Thanks to its special structural position, Hanoi and its surrounding areas have rich and diverse minerals, but their reserves are not large. However, some types can partially meet the economic needs of the capital.

With the above natural conditions, it is necessary to promote the available favorable potentials, and at the same time, anticipate and overcome the consequences caused by Hanoi's unfavorable natural conditions.

+ Advantages:

Due to its relatively good infrastructure compared to many other localities in the country (transportation system, electricity, water, banking, post office, etc.), Hanoi is an attractive location for TNCs to invest and has favorable conditions for TNCs to operate effectively for two reasons.

- Cost savings for investors due to the convenience in creating basic factors for production such as factories, machinery, equipment, materials, and labor.

moving

- Save time for production preparation stages, thanks to taking advantage of

have the opportunity to consume on the market.

As the capital, the political center, the cultural center, Hanoi has the conditions to widely promote its image to the world to attract the attention of investors. Good climate, abundant water resources, the fertility of the

Land, rich and diverse resources attract investors to organize production and business in both industrial and processing sectors. The dense river system with many scenic spots is a favorable condition for tourism development.

+ Bet :

Land fund is limited so there are many limitations if we want to expand the construction of export processing zones, industrial zones, especially high-tech zones to attract investment from TNCs. Infrastructure in the inner city is not convenient.

It is beneficial for construction, so TNCs have to spend a lot of money when creating the foundation for production and business facilities.

2.1.2. Factors of socio-economic conditions of Hanoi.

* On population - labor and quality of human resources:

As of November 5, 2007, the city had 3.4 million people, of which 2.17 million were of working age, including 1.94 million employees; 0.54 million people working for state-owned enterprises, joint-stock companies and private companies, about 0.34 million people working in state agencies and the military. Of which, the number of people graduating from college or university was 204,464 and the number of people with post-graduate degrees was more than 5,000. Thus, Hanoi has a fairly abundant labor force, a young workforce with a fairly high level of education, and a high rate of unemployment.

The rate of trained workers is currently over 40% (higher than the average rate of provinces in the country).

The vocational training structure and the distribution of resources are still unbalanced between regions and economic sectors. Trained workers are mainly concentrated in the industrial production sector, the state-owned economic sector and the administrative sector. The quality of workers in the non-state economic sector, agriculture and suburban areas is still low. Labor force

There is a lack of high-quality vocational training. Hanoi has a fairly high population density compared to the average of provinces and cities in the country. In general, the population density of the whole city is 3,600 people/km 2 , in the inner city area is 10,910 people/km 2 , in the suburbs is 1,573 people/km 2. The rapid population growth rate and uneven distribution are causing pressing issues in housing and employment. In addition, the number of people facing difficulties and destitute people from other localities is increasing, making the city "overloaded" in many ways.

* Infrastructure system - technology and technology level.

Entering the period of innovation with the movement of the whole country, Hanoi city has had many positive changes. In the years 1987-1990, the economic achievements that the city achieved were: Industrial production and small handicrafts

The industry has made much progress, with the footwear, leather, textile, garment, electronics assembly, construction materials, export processing, etc. industries developing rapidly. A multi-sector commodity economy with a socialist orientation has been formed, thanks to

That exploits the economic potential of the whole community, thereby increasing the production capacity of society and gradually improving people's lives.

After 20 years of innovation, the system of technical facilities and technology has been

There has been a big change but compared to the requirements of the transition process

Economic restructuring to keep up with the pace of scientific and technological progress and urbanization has not yet met the demand.

Although it has not fully met the requirements of industrialization and modernization, Hanoi is still considered to have the strongest scientific and technological potential in the country.

* Political factors.

Political stability is a factor that has a strong impact on economic development in general, stimulating the activities of TNCs in Hanoi in particular. While the world is still experiencing ethnic, religious, and terrorist conflicts, Hanoi is still a peaceful city, maintaining order and discipline, and continuing to have stable economic growth.

Like natural factors, Hanoi's socio-economic factors also create advantages and disadvantages for the activities of TNCs.

+ Advantages:

With an abundant labor force (2.17 million people of working age)

With a relatively high level of professional education, Hanoi has the potential to provide TNCs with both the quantity and quality they require. Hanoi is also considered the Capital of Peace, always stable in terms of politics and society, this is a very important factor that helps investors in TNCs not to worry about the risks of causing great economic losses due to social fluctuations. In addition, the capital Hanoi also has a long history, a culture with its own identity, which is a point of great interest to tourists, for that reason it has great appeal.

for TNCs wanting to invest in this field. Compared to many localities in the country, Hanoi's technical facilities are better, the labor force is of higher quality, so Hanoi has an advantage in promoting activities.

production and business activities of TNCs in high-tech fields.

+ Bet :

The rapid population growth, coupled with people from other localities coming to find work, has caused the city to be overloaded, leading to unsafe living and working environments. This has caused considerable concern for investors. Although Hanoi’s infrastructure is better than many other localities, it is still inferior to the capitals of some countries in the region (the capitals of Thailand, Singapore, etc.), thus somewhat limiting the activities of TNCs.

2.1.3. Socio-economic development process in Hanoi.

Hanoi Capital is the political, cultural, scientific, technical, economic and international exchange center of the whole country. Since October 1954, Hanoi Capital

Since its liberation, the city has undergone strong socio-economic changes. From a city of 300,000 people, essentially a consumer city with only 25 industrial enterprises in 1954; to date, Hanoi has had 880 state-owned business units, over 500 cooperatives and over 7,000 enterprises belonging to other economic groups. The illiteracy rate was 90% in 1954, to date, over 90% of the city's population aged 15 has been educated in secondary school. Compared to 1990, in 2007, the gross domestic product increased 5.0 times; the value of industrial production in the area increased 7.9 times, the value of agriculture, forestry and fishery products increased 2.75 times. Financial and credit activities have had many significant improvements, contributing to socio-economic development. The lives of the majority of the population have improved and are increasingly enhanced. The number of rich households has increased, the number of poor households has decreased, and now there are basically no hungry households. Gross domestic product (GDP) has continuously increased since 1990 with an average annual growth rate of 11.6%, of which the period 1991-1995 was 12.5%/year, the period 1996-2000 was 10.6%. In 2001-2006, it reached

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