HANOI: Small and medium enterprises (SMEs) in Hanoi are being encouraged to tap into opportunities arising from public investment, infrastructure development, digital transformation and the green economy.
This comes as the capital sought to mobilise the private sector in pursuit of sustainable double-digit growth.
Opportunities were discussed at a policy dialogue on Aug 25, jointly organised by the Hanoi People’s Committee Office and the Hanoi Small and Medium Enterprises Association (Hanoisme), which focused on how local businesses can strengthen their capacity and contribute to the city’s growth ambitions.
Chief of the Hanoi People’s Committee Office, Nguyen Tien Thiet, said the capital has considerable advantages in workers, science and technology, universities and research institutes, consumer demand, service infrastructure and its position as a regional connectivity hub.
However, those advantages can only become genuine growth drivers when translated into effective flows of capital, technology, data, skilled workers, markets and business confidence, he said.
To achieve high but sustainable growth, Hanoi cannot rely solely on expanding economic scale.
It also needs to raise productivity, accelerate science and technology adoption, promote innovation, digital and green transformation, improve governance and unlock investment resources, he added.
Government agencies, meanwhile, are expected to improve public services, shorten administrative processing times, strengthen accountability, digitalise procedures and make greater use of data in management.
Businesses can currently access free consultancy packages at the Hanoi Department of Finance or through the online portal of the Hanoi Support Centre for Enterprise and Investment Promotion.
An artificial intelligence system is expected to be integrated into the platform to directly answer questions related to business registration and investment.
Nguyen Viet Hung, director of the Hanoi Institute for Socio-economic Development Studies, said SMEs play an important role even in the world’s leading industrial economies, because they help complete value chains across different industries.
“In the short term, growth opportunities could emerge from public investment, construction, transport, logistics, wholesale and retail,” he said.
However, over the medium and long-term, businesses need to strengthen their foundations in science, technology, innovation and digital transformation.
Supporting SMEs would also require appropriate tax policies and streamlined administrative procedures.
Mac Quoc Anh, vice-chairman and secretary general of Hanoisme, said the key issue is whether SMEs have sufficient capacity to make effective use of policies already being introduced.
Hanoi’s expanding transport, logistics and green infrastructure could open up new business opportunities, with public investment acting as a catalyst for private enterprises.
Smart urban development, education, healthcare and digital services are also creating market segments suited to SMEs.
Companies should accelerate digitalisation and technological innovation, while participating more deeply in the value chains of foreign-invested corporations.
“Instead of focusing simply on selling individual products, SMEs should develop the capabilities required to become suppliers within larger value chains and meet international standards,” Quoc Anh said.
Green industries, the creative economy and high value-added services were also identified as potential areas for expansion.
Access to capital will increasingly depend on the quality of individual businesses.
Nguyen Minh Hanh, general director of Vietnam Fortune Fund Management JSC, said investors tend to favour enterprises that have demonstrated expertise in a particular field, established effective business models and shown further growth potential.
Investment decisions are not based solely on collateral, he said. Investors also assess cash-flow generation, growth plans and how additional capital would be deployed to support expansion.
Dr Bui Thanh Minh, deputy director of the Office of the Private Economic Development Research Board, said businesses are facing rapid changes in compliance requirements, data standardisation, taxation and accounting.
Companies, therefore, need to professionalise governance and standardise operations to improve access to finance and make better use of support policies.
Minh also called for compliance tolerance during the transition, giving businesses time to identify shortcomings, improve internal systems, and gradually standardise their operations. — Viet Nam News/ANN
