At the press conference announcing the “2024 Thang Long Business Honors” on May 15, Mr. Mac Quoc Anh, Vice Chairman and General Secretary of the Hanoi Association of Small and Medium Enterprises, assessed that 2024 is a year of great opportunities and challenges for the Thang Long business community.
SMALL AND MEDIUM-SIZED ENTERPRISES CONTRIBUTE OVER 40% OF HANOI’S GDP
The opportunities for businesses lie in the mechanisms and policies issued by the National Assembly and the Government since 2023. Many enterprises have benefited from policies such as tax and fee reductions and adjusted interest rates. In early 2024, many businesses accessed new capital with preferential interest rates.
Regarding export activities, the tax and customs sector has actively resolved procedures for tax refunds and facilitated customs clearance through the green channel, prioritizing exports. As a result, the profits of Hanoi-based enterprises have increased.
Hanoi’s domestic revenue has increased compared to the same period last year, and investment in the city in the first months of 2024 rose by over 9%. The city also leads the country in FDI attraction.
At the ceremony, Mr. Nguyen Dinh Thang, Deputy Director of the Hanoi Department of Industry and Trade, highly appreciated the role of the business community and entrepreneurs. As the main productive force of the economy, they play a crucial role in the capital’s construction and development throughout history.
The small and medium-sized enterprises of Hanoi have been affirming their core and pioneering role in building and developing the capital. They account for 98.2% of the total number of registered enterprises, providing jobs for 55.1% of the labor force.
Enterprises in Hanoi, mostly small and medium-sized, contribute over 40% of the city’s GDP, up from 25% previously.
However, Mr. Mac Quoc Anh frankly stated that businesses still face many difficulties and challenges. While many solutions have been issued, there are certain obstacles and limitations in implementation, such as procedures for land use certificates, investment and construction permits, and issues related to the natural resources and environment sector.
On the other hand, market competition is growing, not only domestically but also internationally. This is a challenging period for businesses, requiring further innovation. Today’s competition is very different from five years ago.
In addition, many enterprises face difficulties in accessing credit due to a lack of collateral and the challenge of accessing support funds.
NEED FOR MORE SOLUTIONS TO REMOVE OBSTACLES
To support Hanoi businesses in overcoming difficulties, the Association, as an extended arm of the state management agencies, always promotes its role and fulfills its assigned functions and tasks of gathering and assisting small and medium-sized enterprises. It aims to create a strong community of such enterprises in the city.
The Association acts as a bridge for economic cooperation among member enterprises of all economic sectors to improve their business capacity and competitiveness in the integrated and developing economy.
To create a more favorable business environment, the Association actively provides feedback and recommendations to ministries, sectors, and the Government when constructing legal documents related to business activities.
Additionally, the Association focuses on labor training and retraining to enhance management skills and workers’ qualifications in industrial parks and clusters.
Particularly in the future, the Association will coordinate with training institutions in the city to provide career orientation and support students’ startup projects, supplying qualified human resources for enterprises.
The Association and enterprises also closely coordinate with trade unions and party committees to ensure attractive salaries and welfare for employees, thus retaining talent.
Strengthening intra-block linkages and promoting export activities, especially in key sectors such as agriculture, industry, and food, are also priorities.
Working closely with banking systems and credit institutions to provide financial solutions and facilitate enterprises’ access to loans with suitable interest rates is another crucial aspect. The Association advocates for reduced lending conditions and an increase in unsecured loans to about 35% of the total loan amount.
Furthermore, the Association focuses on activities assigned by the city and the Central Government, such as concretizing solutions and programs, especially the Law on Supporting Small and Medium Enterprises, which has been in effect since 2018.
It also promotes dialogue with management agencies to remove obstacles and simplify procedures related to taxes, customs, investment certificates, and land use rights certificates.
The 2024 Thang Long Business Honors, towards celebrating the 70th anniversary of the Liberation of the Capital (October 10, 1954 – October 10, 2024), is scheduled to take place on the evening of September 29, 2024, at the Hanoi Opera House.
This annual event, organized by the Hanoi Association of Small and Medium Enterprises, aims to honor individuals and collectives with outstanding achievements in production and business and active contributions to the Association and social security programs. It helps spread the values of the business community and contributes to the socio-economic development of the capital.
