Ha Noi facilitates development of private economic sector

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According to a report by the Ha Noi Department of Planning and Investment, there are currently a total of 281,228 enterprises operating in the capital city, equivalent to a business per 38 citizens – 3.8 times higher than the national average. 

The local small and medium-sized enterprises (SMEs) are mainly the private firms, making up 97.2% of the total number of businesses.

Ha Noi’s private businesses have been constantly developing and renovating themselves, contributing over 40% of the city’s gross domestic product (GDP) and creating jobs for more than 50% of the local labor force. 

To achieve such results, Ha Noi has created favorable conditions, as well as reforming administrative procedures, mechanisms and policies, and working with relevant units to create a level playing field for businesses. 

At the same time, with their unceasing self-renewal efforts, the community of private firms have affirmed their important role in Ha Noi’s economic development. 

However, in order to further develop the private economy, the capital city should continue to improve the investment environment and remove bottlenecks.

To support private enterprises, Ha Noi has provided free consultancy and instructions for businesses concerning the performance of business registration formalities, in addition to establishing and facilitating the operations of a number of business incubators, whilst supporting SMEs to convert from household businesses. 

The city has also developed a project on supporting innovative startups in Ha Noi until 2025, with a vision to 2045.

In an effort to develop the private economy into an important driving force of the market economy, the Ha NoiPeople’s Committee issued Official Dispatch No. 367/UBND-KT on February 5, 2020, requesting departments, sectors and People’s Committees of districts and towns to implement the plan on the sustainable development of private companies until 2025, with a vision to 2030.

Accordingly, the city urged heads of departments, agencies and units, and chairpersons of the district-level People’s Committees and local business associations to devise plans to drastically and effectively implement tasks and solutions set in the Prime Minister’s Decision No. 1362/QD-TTg dated October 11, 2019 on approving the plan on the sustainable development of private businesses until 2025, with a vision to 2030.

Right in 2020, Ha Noi has set the goal of promoting rapid and sustainable economic growth and striving to achieve a GDP growth rate of 7.5% or above. 

Along with that, the city will continue to remove difficulties for business production, accelerate the establishment of industrial clusters and infrastructure investment to attract production and business projects, and participate more deeply in the global value chain.

Throughout 30 years of doi moi, the private sector has played an important role in the development of the socialist-oriented market economy in Viet Nam. 

Currently, the private sector accounts for 39-40% of the GDP./.

By Vien Nhu