Hanoi is looking to drive the sustainable development of the capital’s economy by taking a series of measures that include developing its industrial sector and product competitiveness in order to play an ever evolving role as it integrates with the global supply chain.

Industrial production – key driving force

According to the municipal Statistics Department, the city’s gross regional domestic product went up 9.69% annually in the first nine months of this year. As of the third quarter, its industrial production index rose by 12.4% year-on-year, bringing the nine-month index growth to 8.6%, providing the driving force behind the city’s economy.

Deputy Director of the Hanoi Promotion Agency Le Tu Luc said since the beginning of this year, Hanoi’s economy has been recovering thanks to timely measures taken to tackle difficulties in production and trade. In particular, the city is constantly focusing on manufacturers of key industrial products 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 Party Committee, Hanoi is targeting a new growth model to effectively promote its potential and strengths in economic development; effectively tapping available resources; taking advantage of the achievements made in the fourth industrial revolution, and improving the production value of key industrial products.

To that end, the municipal People’s Committee has issued directions and projects for the development of key industrial products till 2025. The city has so far recognised 117 products at 81 enterprises, 22 of which have earned a revenue of over 1 trillion VND. Of those, 12 are among the top 500 Vietnamese businesses and 10 have global trademarks.

The city has set up eight key industrial sectors with thousands of products, mostly in priority and core industries such as new materials, mould production, electricity and electronics. Several firms have recorded annual revenues of over 1 trillion VND, including Son Ha Group, and Rang Dong Light Source & Vacuum Flask JSC. Others have broken the 4 trillion VND annual 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, local credit organisations are supporting clients and firms hit by COVID-19 by restructuring debt payment terms, offering lowered lending rates or exemptions, as well as loans to sustain production and trade. As of the end of September, total outstanding 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)’s municipal branch, said banks are constantly in touch with firms to offer loans at preferential rates. Any firm interested in more capital can apply for the SBV’s 40 trillion VND loan package for 2022-2023 at an annual interest rate of 2%.

Vice Chairman of the municipal People’s Committee Nguyen Manh Quyen said Hanoi is committed to standing side-by-side with firms to ensure the production of key industrial products, contributing to the city’s common development. He also suggested industrial enterprises adopt technological advancements in production to raise quality to international standards, and by doing so join global manufacturing and supply chains.

To fulfil the goals set out in Plan No. 267/KH-UBND on the development of key industrial products in Hanoi in 2022, the Hanoi People's Committee will improve the business environment, assist manufacturers of key industrial products in sci-tech and  human resources development.

It will also award outstanding key industrial products and issue investment trade mechanisms and policies in support of the field./