Hanoi targets to have 900 enterprises operating in supporting industries by the end of 2020, the municipal Party Committee revealed in its latest plan No.94 which sets up a program to boost supporting industries in Hanoi.

Illustrative photo.

Among those firms, Hanoi expects at least 400 companies to have production chains and products of international standards, which are capable of taking part in the global supply chain of multinationals in Vietnam.

Under the plan, Hanoi would focus on developing supporting industries based on the city’s specific demands and development potential.

But the priority would be to realize Hanoi’s vision for the development of industrial sectors in three key fields, which are production of accessories and parts; supporting industries for hi-tech industries, and footwear and garment.

By the end of this year, Hanoi expects production value of supporting industries to account for 18% of total value of the city’s manufacturing and processing, while the development index of supporting industries would expand by 12% annually.

To achieve this target, the Hanoi People’s Committee would accelerate the development of supporting industries in the city via measures to enhance capacities of local enterprises; supporting firms to become suppliers for domestic and global supply chains; and attracting more investments in supporting industries to increase the number enterprises in the field.

Director of Hanoi’s Department of Industry and Trade Le Hong Thang previously said the city has been providing incentive policies for the development of supporting industries, referring to the Hanoi Southern Supporting Industrial Park which allows land rental period of up to 70 years and preferential loans from banks for investors in the Park, among others.

Thang said there has been trend of growing investments in hi-tech, green technologies and sustainable development in industrial zones in Hanoi over the past few years.

Hanoi is scheduled to have a total of 68 industrial zones by 2020, with total investment capital of VND19.16 trillion (US$822.4 million), according to information revealed at the 2018 Hanoi Investment Cooperation Conference. 

As of present, Hanoi has a total of 70 operational industrial clusters and parks in 17 districts and towns, covering a total area of 1,686 hectares and contributing significantly to the city's economic development and social welfare.