Hanoi to foster production growth

Sewing up trade: Clothes for export being made at Viet Huy Textile and Garment Company in Hanoi's Thuong Tin Industrial Zone. The city is setting up a new group that will include representatives from local business associations in a bid to remove obstacles to business development.- VNA/VNS Photo Tran Viet

The new standing board would hold its first meeting next month, said chairman of the Hanoi People's Committee Nguyen The Thao at a conference held in the capital yesterday.

Addressing the conference on measures to boost business growth, Thao said that the municipal authorities would invite representatives from business associations of Hanoi to take part in the board.

In addition, the city would organise dialogues with businesses to find better ways to spur production as the domestic and global economy was forecast to continuously face difficulties.

Thao said to help local businesses who were facing ever increasing inventories, the city would set aside VND50 billion for trade promotion this year to help them find customers.

The city has provided aid of VND328 billion for firms to supply necessary commodities in the city's pricing stabilisation programmes, he said.

The city will also support prioritised businesses in exports, high-tech, rural and agricultural development and support industries as well as aid small and medium-sized businesses with a VND100 billion preferential interest rate package, he announced.

Under the scheme, Sacombank, Military Bank and VIB Bank are setting aside VND5 trillion for businesses at low interest rates.

To support businesses in expanding production, the city is also implementing a post-investment preferential interest rate package worth VND100 billion in addition to setting another VND80 billion aside for a credit guarantee fund for small and medium-sized businesses.

To reduce high inventories in the cement and steel industries, the city would invest more in building more transport infrastructure in rural areas as well as diversifying the investment methods of BOT (built-operation-transfer) and PPP (public-private partnership) development models.

As for the real estate industry, city authorities will consider investor proposals of converting commercial apartments into social housing and resettlement housing for civil servants.

According to statistics from the Ministry of Construction, the capital currently has roughly 5,789 vacant apartments.

To reduce supply of commercial apartments, authorities will not consider all investment, construction and trading proposals for commercial housing projects in the city from now to December 31, 2014.

The city would also work on providing low-interest rate loans for low-income people, civil servants and officials in the armed forces to buy or rent social housing or commercial housing (of less than 70 square metres with prices of less than VND15 million per square metre).

To further support real estate businesses, Hanoi authorities will direct commercial banks to continue funding uncompleted property projects.

Owners of housing projects for sale, rent or infrastructure trading that are in financial difficulties may also benefit from an extension for land-use fee payments.