Hanoi Accompany foreign investors to restore production and business

An overview of the conference

On October 19, Hanoi held a conference to solve difficulties for foreign-invested businesses in Hanoi during Covid-19 pandemic.

Speaking at the opening of the conference, Politburo member and Minister of Finance Dinh Tien Dung said that Hanoi is the heart of the country, and one of the two largest economic centers of Vietnam. Although the area of Hanoi only accounts for about 1% of the country’s area and the population only accounts for about 8.5% of the country’s population, Hanoi has contributed about 16% of GDP, 18.5% of budget revenue, 20% of domestic revenue and 8.6% of total import and export turnover of the country.

Hanoi is increasingly asserting its position and role as a major center of economy and international transactions, an important driving force of the Capital region, the Red River Delta region and the whole country.

According to Vice Chairman of the City People’s Committee Nguyen Manh Quyen, Hanoi is one of the earliest localities to receive foreign investment projects, with the first project in 1989. So far, the city is ranked third in the country in total foreign investment. In the first nine months of the year, Hanoi has undergone two phases of pandemic prevention and control, of which the most stressful is the latest social distancing period lasting 60 days, from the end of July until now. This has caused production and business activities of enterprises to stall, and FDI enterprises have also been affected by the suspension of production and business activities to prevent the pandemic.

However, following the momentum of FDI attraction from 2018 onwards, in the first nine months of 2021, foreign investors continued to be confident and optimistic about Hanoi’s business investment environment with a total registered capital of US$1.28 billion. Thereby, it has made an important contribution to the overall socio-economic development results of the city, with about 10% of the city’s total budget revenue, 12.6% of development investment capital, 30% of total employment and 45% of total import and export turnover of the whole city.

Secretary of the Party Committee Dinh Tien Dung affirmed that this is proof that the business investment environment of Hanoi is always attractive, ensuring safety and stability for foreign businesses and investors.

Understanding the difficulties caused by the impact of the Covid-19 pandemic, the Hanoi government has been trying its best, taking many measures to control the disease as soon and as quickly as possible. At the same time, focus on supporting businesses and foreign investors to overcome difficulties to maintain and restore production and business.

Always accompanying businesses to overcome difficulties due to the pandemic to turn “danger” into “opportunity”, the city government has directed the Hanoi Tax Department to immediately extend the payment of value added tax, corporate income tax, personal income tax and land rent in 2021 for over 31,000 taxpayers, with a total amount of tax and land rent extended of about VND22,000 billion according to the provisions of Decree No. 52 of the Government. Reduce 30% of the land rent payable to 650 taxpayers, with the land rent reduced by about VND250 billion according to the provisions of Decision No. 27 of the Prime Minister.

Secretary of the City Party Committee Dinh Tien Dung said that in the future development orientation, Hanoi will focus on strongly renewing the growth model, restructuring the economy based on the development of science and technology application and innovation across the whole society. Develop digital infrastructure, information technology infrastructure, data infrastructure, interconnection, creating a foundation for the development of the digital economy and digital society.

The city will continue to improve the quality of planning and management; increase the effectiveness and efficiency of urban management and urban order; step up reform of administrative procedures, improve the business investment environment, promptly remove difficulties and obstacles for investors; creating strong changes in discipline, responsibility, quality and efficiency in serving businesses and people.

The Secretary of the City Party Committee wishes that, with the spirit of frankness, responsibility and marketability, the Hanoi government will listen to the difficulties and problems faced by businesses and foreign investors. Especially recommendations, proposals, initiatives and experiences for the city government to have solutions to support, remove difficulties, promote the process of economic recovery and development, creating a favorable, safe and healthy business investment environment for businesses and foreign investors operating in the capital.