Nov 06, 2021 / 14:33

Hanoi promotes rapid and sustainable business development

The main objective of Hanoi’s economic recovery plan is to timely address the bottlenecks that are restricting business operation for the soon resumption of economic activities.

Hanoi is focusing its efforts on addressing legal bottlenecks in administrative reforms and concerns of the business community to provide the platform for businesses’ sustainable and rapid development.

 Secretary of the Hanoi Party Committee Dinh Tien Dung. Photos: Thanh Hai

Secretary of the Hanoi Party Committee Dinh Tien Dung gave the remarks at the city’s dialogue with local businesses today [November 6].

Dung noted the fourth Covid-19 outbreak since April 27 has caused severe impacts on socio-economic activities.

“The city’s utmost priority is to protect people’s lives and minimize the pandemic’s impacts on businesses operation,” he said.

According to Dung, to date, the city has basically controlled the situation and is now shifting to a new normal by ensuring safe and flexible adaptation to the pandemic.

The city’s Party chief noted the Vietnam Fatherland Front – Hanoi chapter and other socio-political organizations have provided financial support worth VND4.27 trillion (US$188.6 million) to  4.3 million people affected by the pandemic, along with preferential loans of VND476 billion ($21 million) to nearly 10,000 for production resumption and job creation.

Dung highlighted the efforts of the business community are not only complying with the city’s restriction measures but also actively contributing to the overall Covid-19 response by donating medical equipment and materials.

In any situation, Dung said the city has always seen the business community as the key driver for socio-economic development, enabling Hanoi to realize its growth objectives.

 Overview of the dialogue. 

As of present, Hanoi is home to 201,000 enterprises, the second-largest number nationwide and accounting for 23.7% of total operational businesses in the country.

“The business community has been a significant force that helps Hanoi to contribute 16% of the GDP, 18.5% of the state budget collection, and 8.6% of the total trade turnover,” he added.

The pandemic, however, has resulted in unprecedented hardship for businesses with a growing number of companies suspending operations or going bankrupt.

Under the Government’s instruction, Hanoi has waived, lowered, and extended taxes and land rental fees payment worth VND22.6 trillion ($1 billion) for 38,000 enterprises.

“The city continues to push for administrative reform and addressing difficulties that the people and businesses are facing, especially in business/investment procedures, land management, site clearance, construction, and planning,” Dung said.

 Business delegates at the dialogue. 

For the coming time, Dung said the city is determined to revise the growth model and restructure the economy based on science-technology application and innovation, eventually promoting the development of digital society and economy.

“Hanoi would further upgrade socio-economic infrastructure, especially transport projects, to bolster the city’s linkage with neighboring cities/provinces,” he added.

Dung expected significant greater progress in the city’s efforts to address social issues on environmental pollution, traffic congestion, or hospital overload.

Meanwhile, greater quality in planning, land management, public order, and public services are essential for Hanoi to further attract investment capital, Dung said.

“Hanoi is committed to accompanying the business community to overcome the current hardship and thrive in the future,” he stressed, noting enterprises are the decisive factor for a sustainable and independent economy.

 Vice-Chairman of the Hanoi People's Committee Nguyen Manh Quyen.

Providing platform for enterprises to recover

At the dialogue, representatives of businesses voiced concern over the disruption of supply chains and subsequent rising prices of input materials. Meanwhile, labor shortage and difficulties to access capital are putting more burden on businesses’ shoulders.

A survey conducted by the municipal Department of Taxation in October of nearly 30,000 enterprises revealed 25% are having difficulties accessing capital; 30% have difficulties maintaining working capital due to rising costs from Covid-19 prevention measures; 14% have labor shortage, and 20% forced to buy input materials at high costs.

Businesses called for the authorities to extend the program of waiving and lowering taxes and fees until the end of 2021, along with simplifying procedures for enterprises to access preferential loans.

They suggested the Government review the current logistics operation and ensure consistent policies on controlling the movement of goods and people across localities.

Vice-Chairman of the Hanoi People’s Committee Nguyen Manh Quyen referred to the city’s recent plan on safe economic recovery for the 2022-2023 period as the solution to aid the business community.

Quyen noted the main objectives of the plan are to timely address the bottlenecks that are restricting business operation for the soon resumption of economic activities; ensure social welfare and support vulnerable groups during the pandemic; promote innovative startups and digital transformation for sustainable growth.

According to Quyen, the city is set to continue promoting banks-businesses connection programs, and create simpler conditions for businesses, cooperatives, and individual households to access a credit package worth VND1.05 trillion ($46.3 million) for production/business resumption.

“Another package of VND1 trillion ($44.17 million) is under consideration,” he said.

“Right in early November, Hanoi has been working to push for the acceleration of 22 delayed projects as well as the start construction of at least 20 industrial clusters by late 2021; another 18 in early 2022,” he said.