Industry and Trade Sector: Accelerating Business Recovery and Growth

3:55:21 PM | 11/1/2022

Given difficulties caused by the COVID-19 pandemic in 2022, the industry and trade sector of Hai Phong City focused on carrying out support solutions in a bid to help local enterprises achieve successful business outcomes. Therefore, the sector achieved high growth and helped realize the "dual goal" of epidemic prevention and socioeconomic recovery and development.

Industrial production continues to be a driving force of growth

The city's Index of Industrial Production (IIP) was estimated to rise by 12.16% year on year in the first eight months of 2022. Growth-driven sectors included communication equipment manufacturing, computer and peripheral manufacturing, electronic manufacturing, office machinery and equipment manufacturing and apparel production. Industrial manufacturing continued to be a driving force of Hai Phong's economic growth.

Commercially, retail revenue of consumer goods and services was projected to rise by 13.9% year on year. The export value was estimated at US$15.3 billion.

Besides, from January to August, Hai Phong City attracted 49 new projects with US$689.09 million of investment capital (the industry accounted for 51.89%) and licensed 27 existing projects to add to their investment fund by US$420.85 million. This result reaffirmed the appeal of the local investment environment.

To facilitate enterprises to quickly restore their business operations and work safely and effectively in the new normalcy as instructed by Resolution 128/NQ-CP dated October 11, 2021 of the Government, the Department of Industry and Trade advised the City People's Committee to establish a steering committee for industrial production restoration of the city, adopt operating regulations for this steering committee, and assign specific tasks to committee members who are leaders of municipal departments and agencies. The department set up an information channel and workgroups to directly work with businesses to receive their feedback, immediately tackle their difficulties and proposed matters beyond the jurisdiction of the department to the City People's Committee.

In addition, the Department of Industry and Trade stepped up instructing and supporting organizations and individuals to submit documents online and adopt non cash payment for fees and charges. The department guided enterprises about conditions and methods of granting certificates of origin for exported goods, especially locally branded products and took advantage of tariff preferences from free trade agreements to which Vietnam is signatory. The agency strengthened coordination mechanisms with the Ministry of Industry and Trade, Vietnam Trade Offices in foreign countries around the world and People's Committees of border provinces to implement and remove barriers to trade and customs clearance for enterprises. The department stepped up supply and demand connection and trade promotion together with related agencies to brace up trade cooperation and connection with other provinces and cities to ensure supply and demand balance and find outputs for local businesses.

Moreover, the Department of Industry and Trade has joined hands with relevant agencies and localities to advise the Municipal People's Committee to accelerate infrastructure construction in industrial zones and establish new industrial zones to attract investors and generate resources for production development.

Changing the growth model

In the coming time, the Department of Industry and Trade will continue to advise the city on sectoral restructuring and new growth model, both in depth and in breadth, to create sectoral transition to increased added value and smartness. The department will focus on developing key industries such as electronics - ICT, applied high-tech, mechanical engineering and supporting industries to enhance production value and join global production networks and value chains.

The department will boost import and export, actively integrate into the international economy, and develop trade exchanges with countries in the region and the world. It will build Hai Phong into a key national and international logistics service center; and continue to develop local logistics centers like Cat Bi, Trang Due, VSIP, Dinh Vu and Lach Huyen; and call for investment in aviation logistics.

The agency will encourage, facilitate and spare prioritized land to woo large corporations to invest in hi-tech parks, industrial zones, commercial complexes, international trade fair and exhibition centers, and national and international logistics centers.

Nguyen Vu  (Vietnam Business Forum)