Illustrative image (Photo: qdnd.vn) Hanoi (VNA) – Hanoi is looking to drive thesustainable development of the capital’s economy by taking a series of measuresthat include developing its industrial sector and product competitiveness inorder to play an ever evolving role as it integrates with the global supplychain.
Industrial production – key driving force
According to the municipal Statistics Department, the city’sgross regional domestic product went up 9.69% annually in the first nine monthsof this year. As of the third quarter, its industrial production index rose by12.4% year-on-year, bringing the nine-month index growth to 8.6%, providing thedriving force behind the city’s economy.
Deputy Director of the Hanoi Promotion Agency Le Tu Luc saidsince the beginning of this year, Hanoi’s economy has been recovering thanks totimely measures taken to tackle difficulties in production and trade. Inparticular, the city is constantly focusing on manufacturers of key industrialproducts as the frontline force playing an important role in its development.
Products have global reach
Under a 2021-2025 programme set out by the municipal PartyCommittee, Hanoi is targeting a new growth model to effectively promote itspotential and strengths in economic development; effectively tapping availableresources; taking advantage of the achievements made in the fourth industrialrevolution, and improving the production value of key industrial products.
To that end, the municipal People’s Committee has issueddirections and projects for the development of key industrial products till2025. The city has so far recognised 117 products at 81 enterprises, 22 ofwhich have earned a revenue of over 1 trillion VND. Of those, 12 are among thetop 500 Vietnamese businesses and 10 have global trademarks.
The city has set up eight key industrial sectors with thousandsof products, mostly in priority and core industries such as new materials,mould production, electricity and electronics. Several firms have recordedannual revenues of over 1 trillion VND, including Son Ha Group, and Rang DongLight Source & Vacuum Flask JSC. Others have broken the 4 trillion VNDannual barrier, including Vicostone, Garment 10 Corporation and Sunhouse Group.They contribute trillions to the municipal State budget every year.
Ensuring capital for production
In order to provide capital for production and trade, localcredit organisations are supporting clients and firms hit by COVID-19 byrestructuring debt payment terms, offering lowered lending rates or exemptions,as well as loans to sustain production and trade. As of the end of September, totaloutstanding loans in the city stood at 2.851 quadrillion VND, up 1.1%month-on-month and 10.2% compared to late 2021.
Nguyen Minh Tuan, Director of the State Bank of Vietnam (SBV)’smunicipal branch, said banks are constantly in touch with firms to offer loansat preferential rates. Any firm interested in more capital can apply for theSBV’s 40 trillion VND loan package for 2022-2023 at an annual interest rate of2%.
Vice Chairman of the municipal People’s Committee Nguyen ManhQuyen said Hanoi is committed to standing side-by-side with firms to ensure theproduction of key industrial products, contributing to the city’s commondevelopment. He also suggested industrial enterprises adopt technologicaladvancements in production to raise quality to international standards, and bydoing so join global manufacturing and supply chains.
To fulfil the goals set out in Plan No. 267/KH-UBND on thedevelopment of key industrial products in Hanoi in 2022, the Hanoi People'sCommittee will improve the business environment, assist manufacturers of keyindustrial products in sci-tech and human resources development.
It will also award outstanding key industrial products and issueinvestment trade mechanisms and policies in support of the field./.
