|Hanoi People’s Committee held a dialogue with foreign-invested enterprises on October 19 |
Addressing the event, Dinh Tien Dung, Secretary of Hanoi Party Committee, affirmed that the city is ready with all favourable conditions to welcome potential foreign investors. “Hanoi pledges to ensure the legitimate rights and benefits of investors in line with the rules.”
At the event, representatives of embassies, international organisations, business associations, and foreign-invested enterprises (FIEs) focused discussions on reduction of taxes, vaccination, extension of social insurance payments, travel among cities and provinces, administrative reforms, as well as work permits for foreign labourers and experts.
According to Deputy Chairman of Hanoi People’s Committee Nguyen Manh Quyen, Hanoi authorities have been implementing actions and programmes to control the pandemic at the soonest while supporting businesses and investors in mitigating negative impacts and recovering activities.
The city has assigned specific tasks for departments and units to help deal with FIEs’ difficulties as soon as possible.
Specifically, the city asked Hanoi Tax Department to immediately extend the payments of value added tax, corporate income tax, personal income tax, and land rent for 2021 for more than 31,000 tax payers.
Specifically, a reduction of 30 per cent in land rent is applicable for 650 tax payers with the total amount of VND250 billion ($10.87 million) in line with Decision No.27/2021/QD-TTg dated September 25, 2021.
The city is now step by step becoming safe and adapting to the new circumstances, bringing the city into the new normal and enabling business recovery. Hanoi is expected to issue a recovery plan and align its economic development with COVID-19 prevention and control. In addition, it will issue plans on business recovery.
More importantly, the National Assembly and the government is considering the issuance of additional tax cuts and exemptions, which are expected to be announced soon to support businesses and people hit by the pandemic.
Hanoi is one of the two biggest economic centres of Vietnam. While the city’s area and population make up just 1 and 8.5 per cent of the country total, it contributes about 16 per cent of the country’s GDP, 18.5 per cent of total state budget revenue, and 8.6 per cent of total import-export turnover.
Hanoi has always considered foreign investment an important part of the nation's economy, and an important driving force for its development. The city encourages and creates favourable conditions for FIEs’ long-term development and cooperation and healthy competition with other economic sectors.
With an aim to attract more investment into the development of the city, Hanoi has been resolving barriers facing investors and businesses, pursuing administrative reforms, and improving the business climate to increase its competitiveness.
To date, the city has attracted 6,625 foreign-invested projects with a total registered capital of $48.7 billion.
In 2018-2019, Hanoi was the top destination for foreign investment in the country with a total registered capital of $7.5 billion and $8.67 billion, respectively. In 2020, the city ranked third, luring $3.83 billion.
In the first nine months of 2021, despite the negative impacts of the global health crisis, the city attracted $1.28 billion worth of foreign investment, showing great confidence in the local business climate and significantly contributing to its socio-economic development. Specifically, foreign investors contributed 10 per cent to local state budget, 12.6 per cent of total investment for development, 30 per cent of total employment, and 45 per cent of total import-export turnover.
In the future, Hanoi will revamp its growth model, restructuring the economy towards sci-tech application and innovation. The city will develop its digital, IT, and data infrastructure to create a foundation for the development of the digital economy and digital society.
Quyen emphasised, “In the coming time, Hanoi will accelerate international cooperation in the fields of sci-tech, investment promotion, trade, and tourism, while making better preparations to welcome a wave of investment shifts in the region and the world in the post-COVID-19 landscape.”