Hanoi to allocates over US$40 million to support SMEs in 2021-25

Hanoi is set to allocate VND957 billion (US$41.45 million) to roll out supporting program for small and medium enterprises (SMEs) in the 2021-25 period.

Mechanical production at Tam Hop Company in Soc Son industrial park. Photo: Thanh Hai.

Under the program, Hanoi targets to create an addition of 150,000 new enterprises in the next five-year, or an average growth of business creation at 10% per year, equivalent to 30,000 newly established ones.

The program reveals three main tasks for local authorities, including providing overall support for SMEs; supporting business households to formalize into enterprises as well as SMEs further integrate into value chains; and drafting preferential treatment for enterprises.

Hanoi will also push for greater administrative reform and the application of public services at advanced online stages of three and four out of the four-scale level, along with higher ranking in the Provincial Competitiveness Index (CPI).

In the 2021-25, SMEs in Hanoi are expected to create additional 1.5 million jobs, while making up over 40% of the city’s gross regional domestic product (GRDP), 30% of the state budget and 25% of total export turnover.

Hanoi also aims to provide support for at least 500 SMEs in manufacturing and processing sector, especially those in IT, industrial electronics, hi-tech farming, and agricultural production, among others.

As of December 31, Hanoi has a total of 26,441 newly established enterprises with a combined registered capital of VND337.68 trillion (US$14.61 billion), taking the total number of operational companies in the city to 303,646, while the number of enterprises resumed operation surged 21% year-on-year to 6,298.

To date, 100% of public services in Hanoi are provided at advanced online stages of three and four, including administrative procedures directly impacted businesses such as business registration, tax payment, social insurance, land, and electricity.

Hanoi has also been maintaining the 100% rate in online business registration, online tax declaration at 97.1%, and 95.5% of companies paying tax online.

The city’s local departments and units have so far trimmed off 91 administrative procedures in fields of natural resources and environment, resulting in a 30-50% shorter processing time for people and businesses.

In the coming time, Hanoi continues to give priority to improving the business environment and economic competitiveness, ensuring a fair and transparent environment for all.