Over the past few years, Hanoi has been supportive to the establishment of enterprises and help household businesses to register and become formal.
Illustrative photo.
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Total financial supports are expected to reach VND73 billion (US$3.14 million) in the 2018 – 2020 period.
Additionally, Hanoi’s authority has given priority to supporting enterprises in operation, especially in the field of industry, finance, market expansion and participating in new business models.
The city continues to improve the business environments towards a transparent, cooperative, and modern manner, becoming a safe and successful investment destination for investors.
Part of the plan is to develop smart city and e-government model, in turn enabling enterprises to commit long-term business. Hanoi currently handles the business registration procedure online, for which the whole process would take at most three days.
Figures speak
In 2018, around 25,742 newly enterprises are expected to be licensed in the city with registered capital of VND280.1 trillion (US$12.04 billion), up 5% in quantity and 31% in capital year-on-year, taking the number of operational enterprises in Hanoi to 255,280, according to Hanoi’s Planning and Investment Department.
As of October 31, Hanoi has 21,452 newly established enterprises with registered capital of VND233.41 trillion (US$10.03 billion), up 4% in quantity and 42% in capital year-on-year.
Of the total, the average registered capital increased 25% year-on-year to VND10.88 billion (US$467,785).
With such records, the capital city is on track to reach the target of having 400,000 operational enterprises by 2020.
Nguyen Van Suu, vice chairman of Hanoi People’s Committee said the capital city’s gross regional domestic product (GRDP) in 2018 is set to grow by 7.37%, up from the 7.3% growth recorded in the same period last year, to reach VND904.5 trillion (US$39.13 billion).
This would result in a GRDP per capita of US$4,910, nearly double the country’s figure of US$2,540, Suu said at a meeting discussing Hanoi’s socio-economic performance in the 2016 – 2018 period, and plan for 2019.
Among 59 cities and provinces having received foreign investment, Hanoi attracted the largest portion of registered capital with US$6.3 billion in the first 11 months of 2018, or 20.4% of total investment, accumulating a total of US$13.25 billion in the 2016 – 2018 period, up 2.12 times compared to the 2011 – 2015 period and 48.6% of the 1986 – 2015 period, Suu said.
Nguyen Duc Chung, chairman of the Hanoi People’s Committee, attributed the success to the fact that Hanoi has always been the pioneer in activities to build a government of service which supports businesses in every step. "The satisfaction of enterprises and citizens has been identified as the gauge in the operation of Hanoi's government system," he said.
Hanoi has targeted a growth rate of 7.3-7.8% for 2018. Along with it, the capital city strives to grow its service sector by 7.1-7.3%, the industry and construction sector by 8.5%-8.7%, and the agricultural sector by 2.5 – 3%. Additionally, export turnover growth is expected to reach 7.5-8%, while total social investment growth was put at of 10.5% - 11%.
