Ha Noi targets 150,000 new businesses in next five years

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

Project beneficiaries include SMEs established and operating in the city, as well as agencies, organizations and individuals involved in the work of supporting SMEs.

The project features three groups of tasks and policies to support SMEs, including providing general support for SMEs, supporting household businesses to turn into enterprises and SMEs to participate in industry linkage clusters and value chains; and providing assistance in accordance with Ha Noi’s mechanisms.

The project aims to accelerate administrative procedure reform and the application of level-3 and level-4 online public services, while improving the capital’s Provincial Competitiveness Index (PCI). 

It has also targeted to have 150,000 new businesses established in the city in the next five years, with an average growth rate of 10% annually (about 30,000 new businesses per year).

Under the project, during the 2021-2025 period, local SMEs will strive to create about 1.5 million new jobs for workers, make up 25% of Ha Noi’s total export revenue, and contribute more than 40% of the city’s gross regional domestic product (GRDP) and over 30% of the city budget.

In addition, the project will offer support for at least 500 SMEs in their manufacturing activities across the industries of information technology, electronics, mechanical engineering, high-tech agriculture, and food & farm produce preservation and processing.

The total funding for the project is estimated at approximately VND960 billion (US$41.6 million), including over VND832 billion (US$36.05 million) from the city budget and more than VND125 billion in counterpart capital of participating organizations and individuals. The project will be implemented from 2021 until the end of 2025.

By Vien Nhu