Hanoi is pushing for the development of industrial infrastructure and key industrial products, seen as the driving force for the capital city’s sustainable economic growth.

Thang Long Industrial Park in Dong Anh District, Hanoi. File photo

During the first six months of 2022, the municipal Department of Industry and Trade started the construction of six industrial parks and is working on accelerating 38 other projects in the city.

For the 2021-2025 period, Hanoi aims for supporting industries to make up 30% of the total value of industrial production, an increase of 5% from the current level; raise the value of key industrial products to 40-45% of total industrial production, and expects 10% of businesses in Hanoi to stay among Vietnam’s top 500 companies.

To realize this goal, Hanoi has announced a plan for the development of the city’s key industrial products until 2025.

As of present, Hanoi boasts 117 key industrial products from 81 companies, 22 of which post revenue of over VND1 trillion (US$42.7 million) per year, 12 among Vietnam’s top 500 businesses, and 10 with brands recognized worldwide.

Chairman of the Hanoi Association of Main Industrial Products (HAMI) Le Vinh Son said the city’s recognition of key industrial products would be a prerequisite for local businesses to promote their brands.

“With this recognition, companies would be able to raise public awareness about their brands and further penetrate international markets,” Son said.

To date, Hanoi currently has eight groups of main industrial products consisting of thousands of different types.

The majority of companies having qualified key industrial products are of large scale with high competitiveness and have integrated into the global value chain.

Priority on accelerating economic projects

Hanoi’s economy has been on a firm recovery track, with the city’s economy expanding by 7.79% during the six months, in which the GRDP in the second quarter grew by 9.49%, and the industrial-construction sector posted a growth rate of 6.31%, contributing 1.27% percentage points to the overall growth.

Head of the Hanoi Management Board of Industrial and Processing zone Le Quang Long said in the first half of 2022, the Board attracted four new projects with a combined registered capital of $20 million and another $62 million being pumped into 12 existing projects.

According to Long, companies operating in industrial parks in Hanoi during the January-June period earned a total revenue of $4.9 billion and paid over $238.5 million in taxes.

Acting Director of the Hanoi Department of Industry and Trade Tran Thi Phuong Lan said in the coming time, the department will work on the city’s objectives for socio-economic development in 2022, focusing on addressing the concerns of businesses during their recovery process, along with ongoing efforts in simplifying administrative procedures and improving the business environment.

“A priority is to accelerate implementation progress of trade facilities and industrial infrastructure, including industrial parks, logistics centers, and shopping malls,” said Lan.

Meanwhile, Vice Chairman of the Hanoi People’s Committee Nguyen Manh Quyen said during the 2021-2025 period, the city is committed to accompanying the business community in promoting industrial products using advanced and environmentally friendly technologies and high-added value; supporting local firms in the digitalization process for higher productivity and promoting new industrial sectors.

“Hanoi envisions to have new products and brands capable of competing in the regional and international market,” Quyen said.