Hanoi targets to have an addition of 150,000 new enterprises in the next five-year, or an average growth of new businesses at 10% per year, equivalent to 30,000 newly established ones.

Deputies of Hanoi People's Council approved the plan to support SMEs in the 2021-25 period.

This was one of the key objectives set in a resolution offering supporting measures for small and medium enterprises (SMEs) in the 2021-25 period, which was ratified today [December 9] by the Hanoi People’s Council with the endorsement of 100% of its deputies present.

The city estimated the cost of support program at VND957 billion (US$41.45 million), which is financed by the public funding and counterpart funds of individuals and organizations participating in the program.

Under the resolutions, Hanoi’s authorities are tasked with three main missions, 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.

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).

In the 2021-25, SMEs in Hanoi are expected to create additional 1.5 million jobs, while making up over 40% of the city’s gross regional domestic product (GRDP), 30% of the state budget and 25% of total export turnover.

Hanoi also aims to provide support for at least 500 SMEs in manufacturing and processing sector, especially those in IT, industrial electronics, hi-tech farming, and agricultural production, among others.

Focusing support for enterprises in priority fields

Deputy Do Thuy Duong from Cau Giay district suggested that the city should provide tailor-made support for enterprises operating in priority fields and social enterprises.

“For long-term and sustainable support for enterprises, the city should focus on building a professional consulting teams with diversified expertise,” she noted.

Deputy Nguyen Thi Lan Huong from Dong Anh district.

Nguyen Thi Lan Huong, a deputy from Dong Anh district, suggested while the 150,000-new enterprises target remains ambitious, there should be a joint-efforts from local authorities and business associations to ensure greater efficiency in implementation.

“Hanoi needs to prioritize hi-tech firms that already master core technologies, so that they could create high spillover effects to the economy,” Mrs. Huong asserted.

To date, Hanoi is ranked second behind Ho Chi Minh City in terms of number of operational enterprises at over 290,000, accounting for over 30% of the total number nationwide.