Hanoi helps businesses restore production, exports

06:35 | 22/09/2020 Economy

(VEN) - Hanoi, the capital, has issued plans and action programs to help businesses in the city, especially small and medium enterprises (SMEs), restore production and trading activities.

hanoi helps businesses restore production exports

Exports down 7.2 percent

According to the Hanoi Department of Industry and Trade, Hanoi exported goods worth an estimated US$1.51 billion in August (down 4.3 and 13.5 percent compared to July and the same time last year, respectively), taking the total to US$9.94 billion in the first eight months of this year, down 7.2 percent compared to the same period in 2019. Exports experiencing a decrease in value included petrol and oil that reached US$525 million (down 44.2 percent), phones and components US$122 million (down 30 percent), and textiles and garments almost US$1.2 billion (down 15.8 percent). Exports with increased revenues included ceramics that yielded US$135 million (up 8.4 percent), wood and wood products US$329 million (up 2.3 percent), and other goods almost US$3.46 billion, up 19 percent.

As a major import and export enterprise, the Hanoi Trade Joint Stock Corporation (Hapro) exports numerous products to almost 80 countries and territories worldwide. Due to the Covid-19 pandemic, Hapro's export turnover in the first half of 2020 only reached US$17.21 million, 48.04 percent of that in the same period last year. A Hapro representative said the corporation was trying to expand the market, develop new export products, increase export value and secure its capital.

Nguyen Thanh Hai, Deputy Director of the Hanoi Department of Industry and Trade, said the pandemic has affected all production and trade sectors, and disrupted product and material supply chains of numerous enterprises. Businesses in the fields of textile and garment, leather and footwear, agriculture, tourism, retail services, and labor-intensive industries have been suffering the most, he said.

Mac Quoc Anh, Vice President and Secretary General of the Hanoi Small and Medium Enterprises Association (HanoiSME), said tourism enterprises have been suffering the most, and other severely affected businesses include 60 percent of all industrial enterprises that import 35-45 percent of materials they need.

The Garment 10 Corporation - Joint Stock Company even has to import 65-70 percent of materials it needs, he said.

Business promotion

Enterprises, especially SMEs, need support from the city to restore production and trading activities in the context of the pandemic.

Hanoi recently issued Plan 167/KH-UBND to promote SMEs’ development, develop startups and digital technology enterprises, build a favorable, fair and stable investment environment for SMEs, and help SMEs join regional and global value chains.

The plan will increase the number of newly established enterprises by 10 percent or 30,000 facilities in 2020, help SMEs improve technology, human resources and competitiveness, and create 150,000 new jobs.

Under the plan, SMEs will be assisted in administrative reform and human resources and technology development, receive access to credit, and benefit from preferential taxes, workspace and land lease rates. Hanoi will provide funding for SMEs to help them connect with foreign businesses and participate in trade fairs and exhibitions.

In addition, Hanoi has launched an action program to help businesses overcome difficulties, promote disbursement of public investment capital and ensure social order and security in the context of the Covid-19 pandemic.

Deputy Director of the Hanoi Department of Industry and Trade Nguyen Thanh Hai: This year, export growth will be modest due to the Covid-19 pandemic. Enterprises including producers have almost no new orders, as most of their partners cancelled orders and/or delayed delivery.

Nguyen Hanh