The development of innovation startups is seen as one of Hanoi’s key targets in the 2021-25 period to ensure the city’s sustainable and rapid development by taking advantage of the Industry 4.0.

Production at Nang Luc Viet Company at Nam Thang Long Industrial Park. Photo: Thanh Hai.

In the next five years, Hanoi targets to create another 150,000 enterprises, or an average business creation growth of 10% per year, equivalent to 30,000 newly established ones.

This would help create an additional 1.5 million jobs by 2025, while realizing the role of the private sector as a key driving force for growth by contributing over 40% of the city’s gross regional domestic product (GRDP), 30% of the state budget and 25% of total export turnover.

In 2020, Hanoi recorded a total of 26,441 newly established enterprises with a combined registered capital of VND337.68 trillion (US$14.61 billion), taking the total number of operational companies in the city to 303,646, while the number of enterprises resumed operation surged 21% year-on-year to 6,298.

Over the years, the local government has been pushing for drastic reforms and putting the people and enterprises at the center of its services.

To date, 100% of public services in Hanoi are provided at advanced online stages of three and four, including administrative procedures directly impacted businesses such as business registration, tax payment, social insurance, land, and electricity.

Hanoi has also been maintaining the 100% rate in online business registration, online tax declaration at 97.1%, and 95.5% of companies paying tax online.

The city’s local departments and units have so far trimmed off 91 administrative procedures in fields of natural resources and environment, resulting in a 30-50% shorter processing time for people and businesses.

Focusing on addressing business concern in 2021

This year, Hanoi targets a strong rebound of GRDP to 7.5% from an estimated of 3.94% in 2020, as the city continues to push for economic restructuring.

Right in the final days of 2020, Chairman of the Hanoi People’s Committee Chu Ngoc Anh signed a supporting program for small and medium enterprises (SMEs) in the 2021-25 period worth VND957 billion (US$41.45 million).

The program assigns three main tasks for local authorities, including providing overall support for SMEs; supporting business households to formalize into enterprises as well as SMEs further integrate into value chains; and drafting preferential treatment for enterprises.

By 2025, at least 500 SMEs in manufacturing and processing sector, especially those in IT, industrial electronics, hi-tech farming, and agricultural production, are expected to receive support from the local governments under the program.

Hanoi will also push for greater administrative reform and the application of public services at advanced online stages of three and four out of the four-scale level, along with higher ranking in the Provincial Competitiveness Index (CPI).

With such efforts, the city should have 100% of public services at the online stage-4 level, which ensures greater convenience for enterprises in terms of market entry and penetration.