Hanoi businesses need easy access to preferential capital to recover

Newly established businesses in Hanoi increased by 54%

According to the Hanoi People's Committee, in 2023, the city will basically complete the general goals, of which 3 targets will exceed the plan.

Gross Regional Domestic Product (GRDP) increased by 6.27%, with GRDP reaching 54.5 billion USD; the number of newly established enterprises reached more than 31,400, an increase of 6.3% over the same period, bringing the total number of enterprises in the area to more than 380,000.

The situation of attracting foreign direct investment (FDI) in the capital has shown signs of improvement in the first month of 2024.

The city attracted 866.8 million USD in FDI capital, including 10 newly licensed projects with a total registered capital of 859.4 million USD;

There were 6 projects with increased investment capital, with the additional registered capital reaching 5.1 million USD. In addition, foreign investors contributed capital and bought shares 7 times, reaching 2.3 million USD.

Regarding the situation of private enterprise registration, in January 2024, the city had 2,529 newly registered enterprises, an increase of 54% over the same period last year, with newly registered capital reaching 35.4 trillion VND, 2.4 times higher than the same period. In addition, 3,660 enterprises resumed operations, an increase of 50% over the same period.

On the contrary, there were also 12.3 thousand enterprises registered to temporarily suspend operations, up 56% over the same period. The authorities have carried out dissolution procedures for 457 enterprises, up 52%; 394 enterprises are waiting for dissolution procedures, up 32% over the same period.

Production line of aircraft engine components at Hanwha Aero Engines Factory (Hoa Lac Hi-Tech Park). Photo: Nhat Nam

The Hanoi Department of Industry and Trade said that recently, high input fuel prices and inflation have affected production costs. The world economy has not recovered, causing businesses to lack orders, leading to a decline in industrial production.

The lack of orders has forced many businesses to cut working hours or jobs.

Although production activities in 2024 are predicted to be "brighter" than in 2023, businesses all believe that they need more support, especially capital, to seize market opportunities.

Need easy access to capital

“The market outlook for businesses in 2024 is bright, but if the immediate difficulties, especially access to credit capital, are not supported, it will be difficult for businesses to seize opportunities,” said Pham Hong Viet, Chairman of the Hanoi Leather and Footwear Association, to the press.

Speaking with Lao Dong, Mr. Nguyen Van - Vice President of the Hanoi Association of Supporting Industry Enterprises said that in reality, enterprises in the association still face many difficulties in terms of capital and financial capacity.

According to Mr. Nguyen Van, providing capital to businesses is important, especially preferential capital with low interest rates, to recover and take advantage of opportunities in 2024. However, the number of businesses that cannot borrow credit capital is still high.

Although the company has recovered production and exports, it has not been able to pay off all its restructured debts. Not to mention the supporting industry, mechanics... which require large investments, but the payback period is long.

Therefore, businesses need support to easily access capital. Agencies also need to study to reduce conditions for accessing capital, lending more flexibly, especially requirements for collateral.

In addition, there are connection solutions to participate in the global supply chain. The association has also organized many programs to connect businesses with Korea, Japan, and India.

With the goal of "Taking people and businesses as the center", in 2023, Hanoi also reduced value added tax for 105,000 businesses and business establishments with a total amount of nearly 29,000 billion VND; extended tax payment for businesses with an amount of more than 20,000 billion VND... helping businesses gradually recover and develop.

The special working group of the City People's Committee on removing difficulties and obstacles, effectively supporting businesses and project investors in the city has also organized many meetings with the participation of relevant parties.

The leaders of the City People's Committee pledged to work with departments, branches, districts, towns and cities to work together, shoulder to shoulder, and remove obstacles and barriers so that businesses can continue to operate smoothly.

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