Hanoi continues to support business recovery as part of its overall efforts to promote socio-economic development and safe adaptation to the Covid-19 pandemic.

Electronics production at Rhythm Precision Vietnam in Noi Bai Industrial Park, Hanoi. Photo: Pham Hung

Chairman of the Hanoi People’s Committee Tran Sy Thanh gave the remarks at the national dialogue between the Prime Minister and the business community on August 11.

According to Thanh, during the first seven months of 2022, the city implemented a 2% cut in value-added tax for nearly 42,000 businesses, deferred payment of corporate income tax worth VND900 billion ($38.5 million), and reduced taxes and fees worth VND 1.7 trillion ($72.7 million).

To date, the banking sector in the city has rescheduled debt payments worth VND63 trillion ($2.7 billion) for 62,000 customers; lowered, froze, and waived interest rates for 326,000 customers with outstanding loans of VND537 trillion ($23 billion); provided new loans with preferential rate from January 2020 to over VND3,800 trillion ($162.4 billion) for 220,000 customers.

Meanwhile, the local authorities have also provided financial support to 2.63 million workers, employers, and individual households affected by the pandemic totaling VND2.5 trillion ($107 billion).

Thanh noted the speedy recovery of businesses has contributed to socio-economic development, reflected in the industrial production expansion by 7.2% during the six months; growth of total revenue from retail sales and services by 22%; revenue from the logistics and transportation sector expanded by 23.1%.

For the remainder of the year, Thanh said the city would continue focusing on economic recovery, especially in addressing the concerns of the business community.

He noted that Hanoi would allocate VND1trillion ($42.7 million) via the Vietnam Bank for Social Policies – Hanoi branch to provide preferential loans for local and businesses, taking the total budget allocated via the bank to VND6.6 trillion ($282 million).

The city’s mayor expected the city to continue implementing the support program for small and medium enterprises during the 2021-2025 period, a project to aid startups in 2019-2025, and the digitalization process for businesses in 2021-2025.

Another priority is to accelerate public investment, especially in major projects with high spillover effects on the economy and addressing social issues.

In the long term, Hanoi’s authorities would continue to speed up the construction planning process, and administrative reform, and improve the business environment.

“Hanoi would speed up IT application and the implementation of e-reporting, e-office toward the establishment of digital Government and society,” he said.