Hanoi mayor urges drastic measures to aid businesses

Chairman of the Hanoi People’s Committee Tran Sy Thanh has requested local authorities to swiftly and effectively implement policies and solutions to overcome difficulties and obstacles hindering investment, production, and business activities.

Production at Garment 10 Company. Photo: Khac Kien/The Hanoi Times

The move aligns with the Government's Resolution No. 74/NQ-CP of May 7 on promoting socio-economic development for the rest of the year.

Thanh stressed the need to closely monitor and accurately forecast global, regional, and national situations. This information should be reported to propose appropriate policies promptly.

"It is important to identify persistent problems that need attention and address them with decisive and effective solutions," Thanh said.

The mayor also called for the rapid implementation of policies and solutions to remove obstacles that hinder production and business investment. This includes promoting investment in infrastructure construction, stimulating economic growth, and facilitating exports.

Accelerating digital transformation is also emphasized, with an urgent focus on upgrading information systems to handle administrative procedures.

This includes digitizing administrative records and results and integrating and connecting with national and specialized databases to ensure compliance with legal requirements.

Thanh noted that the city's continued administrative reform efforts should focus on improving the investment and business environment.

Emphasis will be placed on promptly addressing suggestions and recommendations from localities, businesses, organizations, and individuals.

Regarding issues raised by businesses, organizations, and individuals, Thanh asked local agencies to provide written updates on the processing of petitions, along with the expected timeframe for responses, to ensure they receive feedback on their recommendations.

After recording strong economic growth of 8.89% in 2022, Hanoi's economic expansion rate, mainly driven by the industrial and construction sectors, slowed to 5.8% in the first quarter of this year.

The index of industrial production (IIP) increased only moderately by 0.8%, significantly lower than the average in recent years. In the first quarter of 2020-2023, the IIP index showed year-on-year increases of 4.4%, 7.7%, 5.3%, and 0.8%, respectively.

In the first quarter, the consumption index for manufactured goods declined by 9.3% year-on-year, as weak purchasing power and difficulties in the export market led to a plunge in the consumption index of several manufacturing industries. For example, machinery and equipment fell by 40.9%, garments by 32.2%, metal by 30.6%, and textiles by 27%.

The city's import and export turnover also showed a declining trend in the early months of the year, with demand falling in most of the city's major import and export markets. The total import and export turnover of goods in the first quarter of 2023 was estimated at $11.9 billion, down 9.9% year on year. Specifically, export turnover reached $3.7 billion, reflecting a decrease of 4.6%, while imports amounted to $8.2 billion, indicating a decrease of 12%.