Hanoi accompanies enterprises

Hanoi has pushed up administrative reforms, improved its competitiveness and supported enterprises to catch up with international integration

Positive cooperation

The Hanoi Department of Industry and Trade has cooperated with district and commune-level authorities to implement major solutions and provide the Hanoi People’s Committee with economic development consultancy, contributing to the stable growth of industrial production despite many economic difficulties. Thanks to the assistance, Hanoi has seen a 7.7 percent increase in industrial production index, VND1.03 trillion in total sales and services revenue (a 9.7 percent increase) and US$5.24 billion (a 0.1 percent increase) in exports.

The Hanoi People’s Committee targeted to form an industrial zone and cluster network and assigned the Hanoi Department of Industry and Trade to prepare a master plan for industrial zones and clusters across the capital. Enterprises in need of production sites may contact the department or other relevant agencies, Dam Tien Thang said.

Accounting for 96 percent of Hanoi’s total business number, private enterprises should receive the same preferential treatment as state-owned and foreign direct investment (FDI) enterprises. “Hanoi has provided incentives for local private enterprises to develop production. We can cite a typical example of the key industrial product development program with 53 enterprises receiving financial support to produce and showcase some 60 products,” said Dam Tien Thang.

More incentives are necessary

This year is regarded as a landmark in Vietnam’s international integration, with many signed free trade agreements opening up economic development opportunities along with state administrative challenges.

Recognizing that, Hanoi targeted to push up administrative reforms, improve its competitiveness and support enterprises to catch up with international integration. Under the Hanoi People’s Committee’s direction, the Hanoi Department of Industry and Trade has focused on the implementation of assigned key tasks since the beginning of the year.

The Hanoi Department of Industry and Trade suggested planning and attracting investors in 119 industrial clusters until 2020, expanding four existing industrial clusters and establishing 18 industrial clusters until 2030 in order to have 137 new industrial clusters on more than 2,000ha by 2030. Enterprises investing in local industrial clusters should be exempted from land rent for the first phase and related environmental treatment costs.

Investment-prioritized industrial zones and clusters may seek official development assistance (ODA) funding for projects outside industrial zones and clusters. Investors in infrastructure in industrial zones and clusters will get refund from their revenues. Investors who make a one-time payment of land rent will also benefit from deductions.

Hanoi should adjust site clearance costs to suit the current situation and accommodate seasonal and regular workers.

Nguyen Hanh