Hanoi promotes innovation for better business environment

15:29 | 05/11/2016 Economy- Society

(VEN) - Hanoi has taken many measures to improve the business environment for the city’s business community.

Hanoi promotes innovation for better business environment

A forum on improving the business environment for the city’s business community in Hanoi

Highlights

The Hanoi Department of Industry and Trade has closely cooperated with departments, agencies, associations and the business community to find out difficulties and propose solutions to improve the city’s business environment, Hanoi Department of Industry and Trade Deputy Director Nguyen Thanh Hai said.

The Hanoi Department of Industry and Trade made an attempt to review and standardize 67 administrative procedures following one-stop shop mechanism, while perfecting 60 other procedures and rebuilding seven procedures in accordance with new legal documents. They have cut 25 percent of the time in conducting administrative procedures. In addition, they have actively deployed measures to overcome difficulties facing businesses in order to promote trade and production activities, and exports in the city. Businesses have also benefited from trade promotion events held at home and abroad in order for them to introduce their products and seek new partners.

Tax and customs policies were obvious marks in the first half of 2016 in support policy changes for businesses in the city. Since June 2016, Hanoi has allowed to register the establishment of businesses via internet, shortening the time to two working days. Together with greater efforts of the government and the General Department of Taxation, tax payment time was cut to 117 hours by the end of 2015 and is expected to down to 110 hours by the end of this year. In addition, the Hanoi Department of Vietnam Customs has created the most favorable conditions for export-import activities.

“Among highlights in the city’s business environment are the good quality of the workforce and business support services. In addition to efforts in administrative procedure reforms, information updates for businesses have also been improved,” Vietnam Chamber of Commerce and Industry Deputy Chairman Doan Duy Khuong said.

Incommensurate development

The city’s development has not been commensurate with potential and position. Many inadequate issues in the business environment have been revealed. For example, settling is incorrect with the time in regulations, or guidance is not detailed. Regarding businesses that are likely to expand trade and production activities, complex administrative procedures and slow ground clearance are the biggest difficulties.

Around 80 percent of businesses in the city have faced difficulties in accessing capital as they are not eligible for collateral or do not meet loan procedures due to small scale. In addition, high production costs and low product quality have reduced competitiveness.

Hanoi Small and Medium Enterprises Association Deputy Chairman and General Secretary Mac Quoc Anh said that Hanoi currently has around 200,000 businesses, of which 97 percent are, small and medium-sized enterprises. Therefore, business incentive policies have reached a certain number of businesses, while information about planning and ground clearance remains poor. Furthermore, support measures have not proved its efficiency.

In addition to greater efforts of the authorities in improving the business environment, businesses should be active in proposing policies to make the business environment fairer and more transparent.

Doan Duy Khuong said that it is important to continue Hanoi People’s Committee Action Plan 147 and 85 to strengthen businesses’ contribution to making policies making, consider the private sector as a sustainable development engine, and actively implement business support projects. Hanoi should also clearly determine key sectors and products, which can compete in the domestic and global markets.

Hanoi granted registration certificates for 13,550 new businesses with total registered capital of VND114.17 triillion by July 2016, an increase of 24 percent in number and 54 percent in capital compared to a year ago.

 

Thanh Ha

Theo ven.vn