Hanoi capital moves to reboot economy post COVID-19

The capital has demonstrated its strong resolve to achieve the target by accelerating administrative reforms, improving the business climate, and boosting general competitiveness.

According to economists, the capital leads the way in terms of the percentage of businesses per capita and has become an attractive investment destination chosen by a large number of multinational corporations. Indeed, several transnational corporations have developed plans to move their representative offices from Singapore and Thailand to Vietnam.

Statistics indicate that despite the negative impact of the COVID-19 pandemic, Hanoi’s GRDP during the first half of the year grew by 3.39% with more than 12,600 newly-established enterprises, while FDI attraction managed to reach US$4 billion.

Hanoi Mayor Nguyen Duc Chung stated that to support businesses in the post-pandemic period, the capital has offered tax breaks and extended the deadline for tax payment with a sum of over VND17.500 billion, making up 45% of the country’s total.

Since January 1, Hanoi has been striving to make relentless efforts to improve its business environment, by simplifying 154 administrative procedures for firms and raising the ratio of online public services to 100% by June 30.

The aim is to get all businesses to use e-invoices by this September, said Mayor Chung, adding that a total of 249 public services have been posted on the national public service portal.

In addition, Hanoi remains an ideal investment destination for businesses as its competitiveness index ranked ninth among 63 cities and provinces across the country in both 2018 and 2019, the market access index moved up 53 places compared to 2015, and the public administration reform index ranked second over the course of three consecutive years.

Vu Tien Loc, Chairman of Vietnam Chamber of Commerce and Industry (VCCI), said that both Hanoi and Quang Ninh have developed into the vanguard in terms of the implementation of public-private partnership projects and administrative reforms, along with carrying out steps to build an e-government.

The VCCI Chairman also underscored the importance of improving the provincial competitiveness index to accelerate administrative reforms and facilitate the operations of local firms.

The business community therefore anticipates that the capital will enjoy breakthroughs in administrative reforms in order to provide a fresh impetus for businesses to recover in a swift manner.

Mac Quoc Anh, Vice Chairman and Secretary General of the Hanoi Small and Medium sized Enterprises Association, also underlined the need for Hanoi to simplify administrative procedures and increase transparency and fairness when it comes to serving people and businesses.

Nguyen Van, vice chairman of Hanoi Support Industries Business Association, pointed out that the municipal administration should pay greater attention to the development of the support industry in a bid to help domestic enterprises get involved in the global value chain, including the supply of components for large corporations.