Hanoi eyes key industrial products as driving force for growth

Hanoi is set to draft substantial supporting policies specialized for local enterprises manufacturing the city’s key industrial products, with a view to turning them into the main driving force for growth.

Production at Channel Well Technology Vietnam in Quang Minh Industrial Park, Hanoi. Photo: Pham Hung

“Identifying and developing key industrial products are essential steps to boost growth in industrial sector in a sustainable way and ensure the realization of Hanoi’s targets to complete the industrialization process by 2025,” stressed Vice Chairman of the Hanoi People’s Committee Nguyen Manh Quyen.

“The move is especially important as industrial production plays a key role for economic development,” noted Quyen.

As part of an overall plan to promote key industrial products in 2021, Hanoi expects to select 25-30 industrial products to join a supporting program targeting at boosting enterprises’ production value by 10-12% against 2020.

By late 2021, key industrial products could contribute 35-40% of total industrial production value and 15% of the city’s exports.

To realize these targets, Hanoi aims to gear up trade and investment promotion activities by holding international trade fairs as a way to connect local and foreign partners, in turn taking Vietnamese products into the global supply chain.

For long-term solutions, local authorities would continue to improve business and investment environment by simplifying administrative procedures in fields of construction, customs, taxes and investment.

Hanoi also identifies the necessity to accelerate the construction progress of hi-tech and industrial clusters to create room for modernizing its industrial sector and eventually boosting economic competitiveness.

Vice Director of the municipal Industry and Trade Department Dam Tien Thang noted the local authorities would seek feedback from the business community to draft supporting policies accordingly, especially as the pandemic continues to exert negative impacts on enterprises’ operation.

“Enterprises should further take advantage of Vietnam’s existing trade agreements, including the CPTPP and EVFTA, to grasp opportunities for recovery and growth,” Thang said.

In the past three years, Hanoi recognized 117 products from 77 enterprises as the city’s key industrial products.

Last year, revenue from these 77 firms stood at nearly VND200 trillion (US$8.63 billion), along with export revenue of US$2 billion.

The majority of enterprises whose products classified as Hanoi’s key industrial items are of large size, high competitiveness and capable of integrating into global supply chains, with names such as Canon Vietnam, TOTO, or Meiko Vietnam.

All are operating in priority industrial sectors such as production of new materials, IT, molding and precision engineering, among others, which are expected to have high spillover effects and contribute significantly to Hanoi’s economic development.