Hanoi strives to untie "knots" faced by businesses

Friday, 2020-04-17 09:51:46
 Font Size:     |        Print
 

Secretary of the Hanoi Municipal Party Committee Vuong Dinh Hue (standing) speaks at the event (Photo: NDO/Duy Linh)
 Font Size:     |  

NDO/VNA - Secretary of the Hanoi Municipal Party Committee Vuong Dinh Hue has said that the city is willing to listen to feedback from enterprises towards untying “knots” regarding policies, site clearance and planning adjustments, as public and private investment is an economic lifesaver of the city's economy.

During a dialogue with businesses in Hanoi on April 16, Hue stated that the COVID-19 pandemic is seriously hurting the world economy, including that of Vietnam. Hanoi’s economy grew by 3.72% in the first quarter this year, lower than the country’s average.

Calling on investors to develop agriculture, he said Hanoi is determined to raise agriculture’s growth by 4.62% this year by increasing heads of cattle and poultry.

According to the official, the city is reviewing land plots so as not to leave them unused. In the outlying district of Ba Vi, there are 41 ha which could be used for clean vegetable cultivation, so investors should consider working on them immediately, he said.

Hue said the municipal authorities will also hold a working session with the Ministry of Information and Communications next week to achieve the target of having one business, even a start-up in the field of information technology, digital economy and public services, per 1,000 people.

About public investment, Hanoi has had over VND107 trillion (US$4.65 billion) over the past five years, or 10% of the country’s total, he said, adding that the city stays determined to disburse nearly VND40 trillion of public investment to ease difficulties for businesses.

In order to mitigate the impacts of the COVID-19 epidemic, he said Hanoi will continue effectively implementing the Law on Support for Small and Medium-sized Enterprises (SMEs), process administrative procedures online at level 3, and step up online registration for procedures involving businesses at level 4.

In his view, Hanoi will promptly devise a scheme to support SMEs for the 2021-2025 period, boost start-ups and innovation, improve quality and diversify business support services, as well as realise the Government’s mechanisms and policies to back production, trade and social welfare for those hit by the epidemic in line with resolutions by the Party Central Committee, the Government and the municipal Party Committee.

Speaking at the event, Chairwoman of BRG Group Nguyen Thi Nga suggested that the Ministry of Planning and Investment should reduce corporate tax by 50%, apply added value tax from 0% or cut it by 50%, and offer land use tax exemption.

Other corporate executives also proposed tax exemption or reduction.

In the first quarter of this year, Hanoi’s regional gross domestic product rose by 3.72%, industrial index its climbed 4.44%, and total retail was up 2.3%. The total social investment was hiked by 5.2% to VND 63.04 trillion.

There were 6,350 newly-registered firms, raising the total to over 285,300 as of March 31.

During the period, more than 4,200 companies suspended operations, up 36% year-on-year. Exports reached over US$, 2.74 billion, down 18.1%, while imports topped US$5.83 billion, down 21.3%.

Almost all sectors saw decreased revenue, including textile and garment, down 30%; footwear, down 20%; and transportation and hospitality services, down 20-50%.