Hanoi has announced its key tasks for the last six months of the year, with priority given to troubleshooting problems facing business and supporting the market.
In the first six months of 2012, Hanoi’s GDP growth was estimated at 7.6 percent, higher than the expected growth of the country but lower than its plan for the period and lower than result in the same period last year. According to the report delivered at the fifth meeting of the People’s Council on July 10, budgetary revenues were forecast at VND69 trillion (US$3.3 billion) in the first six months, equal to 47.2 percent of the estimations and up 5.1 percent over the same period last year.
Notably, the auctioning of land use rights is facing difficulties. In the January - June period, the city auctioned more than 7,000 sq. metres of land and collected VND65.5 billion, equal to just 2.6 percent of the plan. The mobilisation of social capital was also lower than expected. In the six-month period, the city drew over VND85 trillion of investment capital, up 10.2 percent, which was lower than the expected growth of 15 - 17 percent. Compared with a year ago, foreign investment projects registered declined and domestic investment projects decreased too. The number of bankrupt projects and enterprises tended to rise. The number of new business establishments dropped significantly.
Hanoi has identified key tasks in the last six months, with priority given to removing difficulties for businesses and supporting the market in a bid to effectively implement the Government’s Resolution 13. It will focus on such solutions as interest support, power price stabilisation, rational electricity production and distribution. Especially, it will help enterprises access bank loans with lower rates and preference credits.
In enforcing the Governmental Resolution 13 on a number of solutions supporting enterprises to resolve difficulties and supporting the market, budgetary revenue dropped by VND5,150 billion as a result of tax reduction or exemptions for local businesses. Currently, Hanoi has about 70,000 small and medium enterprises (SMEs) entitled to receive preferential policies, tax exemptions and reductions, or tax deferrals. Accordingly, VAT exemptions for SMEs in June 2012, due for payment in January 2013, valued 500 billion; a half reduction in land rents was worth VND150 billion; a 30-percent tax reductions for SMEs and labour-intensive enterprises in the first, second and third quarters of 2012 were worth VND1,000 billion; and land rentals, with payment extended to 2013, valued some VND3,000 billion.
Le Hien
Vietnamese
