A series of manufacturing and technology enterprises poured trillions of VND into Hanoi

The Management Board of Hanoi High-Tech Parks and Industrial Parks awarded a series of decisions approving policies and investment certificates on December 24.

In particular, the Military Industry and Telecommunications Group (Viettel) increased capital for the complex of research, design, and production of electronic telecommunications equipment and technology products by 2,880 billion VND, bringing the total project investment capital to nearly 6,000 billion VND.

CMC Group Joint Stock Company increased VND 1,200 billion in investment capital for a research and innovation complex, aiming at research and development (R&D) in the field of high technology, raising the total capital to more than VND 3,000 billion.

Many other businesses also poured trillions of capital into projects in high-tech industrial parks, such as Sunhouse to build a 1,300 billion VND autonomous robot and AI equipment factory, and GenPharma poured an additional 2,700 billion VND to build a high-tech bio-pharmaceutical factory.

Mr. Vu Xuan Hung, Head of the Management Board, said the city’s high-tech parks and industrial parks are expected to attract about 660 million USD in 2025, exceeding 124.5% of the plan. Revenue at industrial and high-tech parks is estimated at more than 12 billion USD, contributing 19% to the city’s GRDP.

Also at the event, the Management Board had direct dialogue with businesses to remove obstacles in the investment, production and business process.

Regarding administrative procedures, Mr. Hoang Tuan Huy, representative of the Vietnam Institute of Functional Foods, said that investors are having to prepare many monthly reports to send online to management agencies on investment, statistics, environment… The business representative proposed a mechanism to submit a common report, with departments and branches sharing data, to reduce the burden of procedures.

Sumitomo Heavy Industries representative stated difficulties in applying for work permits for foreigners. The slow response time from authorities to this license puts businesses at risk of delays in subsequent procedures such as visa issuance, extension, and temporary residence registration.

Responding to the above problems, the Head of the Management Board of the city’s High-Tech and Industrial Parks said they are proposing that the only focal point for businesses in high-tech and industrial parks is the Management Board, to create favorable conditions for businesses. Since September, they have been decentralizing procedures related to certifying and issuing licenses to workers. The process is carried out online, to ensure convenience and reduce direct contact with public officials.

Mr. Tran Anh Tuan, Deputy Head of the Board, said they provide maximum support to businesses in handling administrative procedures, especially related to foreign workers. “If the documents are presented, it will take me a maximum of 2 hours to sign and respond,” he said.

Regarding the proposal to integrate reporting information and share data between management agencies, Mr. Hung noted and will study a reasonable plan. In fact, the Government and the city have recently implemented many groundbreaking solutions to reform administrative procedures. For example, iHanoi is currently the only platform serving people and businesses in procedures with the city government.

In order to attract talent, the city has issued many special mechanisms such as giving priority to renting and buying houses, reducing personal income tax by 50%, and supporting 100% of monthly bus tickets for the first three years for workers working in high-tech zones.

Research, development, and technology transfer activities are also given priority in renting space and supporting legal consulting costs. Innovative start-up businesses are exempt from taxes for the first 5 years along with rental costs for premises and equipment.

Besides, some businesses also encounter difficulties with tax procedures. Mr. Truong Quoc Cu, General Director of Minh Hoa Joint Stock Company, at Nam Thang Long Industrial Park, mentioned that tax refund procedures after July 1 are facing problems due to many new regulations in the industry. For example, they import materials, but are asked to identify where the unit selling them imported them from. The lack of consistency in instructions caused them to wait 5 months without receiving a refund. “If it’s too difficult, we have to consider not exporting anymore,” Mr. Cu said, even though they are exporting to 40 countries.

Noting the problems of businesses, Mr. Hung said that the Management Board will continue to coordinate closely with relevant agencies and units to implement solutions to avoid blockages in investment, business, or businesses “not wanting to export”. He hopes that proposals from businesses will contribute to opening up the legal corridor for breakthrough mechanisms, creating more favorable business conditions for businesses and investors operating in industrial and high-tech zones in Hanoi.