This is the solution that Hai Phong City is proactively implementing to create momentum to achieve the growth target of 12.5% in 2025 as well as continue high growth in the following period.
Entrepreneurs participating in the program "Hai Phong - Innovative Startup Café" Entrepreneurs participating in the program "Hai Phong - Innovative Startup Café"
According to statistics, there are currently about 47,000 registered enterprises in Hai Phong City, accounting for 5% of the total number of enterprises nationwide. However, the "quality" of enterprises is the matter of concern. In reality, only about 27,000 enterprises are actually operating. The number of large-scale enterprises accounts for less than 1%, while more than 99% are small and medium enterprises. Small and medium enterprises account for about 30%, while micro enterprises account for 60-65%.
Mr. Tran Van Thang - Chairman of Hai Phong Business Association, Chairman of the Board of Directors of Sao Do Group Joint Stock Company frankly acknowledged that, currently, enterprises in the City remain fragmented, lack linkage, have limited management and competitiveness capacity, and have not formed enough strength to participate in regional, national, and global value chains and supply chains.
Many enterprises have short-term thinking, small-scale models, and have not developed long-term development strategies. Enterprises still maintain traditional management methods, lack professionalism, and have not caught up with new trends.
“Many policies are only suitable for large or ‘national-level’ enterprises. Small and medium enterprises do not have enough capacity to access loan sources with high interest rates, and support for innovation is not truly guaranteed...”, Mr. Tran Van Thang - Chairman of Hai Phong Business Association analyzed.
Although there are still many limitations, private enterprises are currently playing a significant driving role for the growth of the Port City. In the period 2020 - 2024, the private economic sector contributed 40 - 45% of the city's GRDP and accounted for over 60% of total domestic revenue.
Hai Phong is also implementing solutions to create resources and expand space for private economy development. Hai Phong City People's Committee is developing a pilot project for several specific mechanisms and policies for city development.
Specifically, Hai Phong City proposes to exempt corporate income tax for 5 years for innovative startups, science and technology organizations, innovation centers, and intermediary organizations supporting startups. Exemption of personal income tax and corporate income tax for individuals and organizations with income from transferring contributed capital or capital contribution rights into innovative startups. Exemption of personal income tax for 5 years for experts, scientists, and innovative startup individuals working at enterprises, science and technology organizations, innovation centers, and intermediary organizations supporting startups.
According to the Project, Hai Phong City also proposes to implement non-refundable support policies from the budget to promote scientific, technological, and innovative activities. These include costs for startup projects, project selection organizations, expert hiring, direct labor wages, innovation support services; support for small and medium innovative startups with costs for using technical facilities, incubators, and coworking spaces.
In the long term, these preferential policies are expected to motivate innovative startups to develop, create more jobs, increase competitiveness, attract investment, and create spillover effects for the economy. The city will create important resources for innovation, generating many technological application, innovation, and digital transformation service products in the next 5 or 10 years based on mobilized financial sources from the ecosystem and foreign investment funds participating in the field of innovative startups, contributing to realizing the goals of major programs that the City is implementing in the long term.
Emphasizing the need to clear bottlenecks for the private economic sector, Mr. Tran Van Thang - Chairman of Hai Phong Business Association also noted that: policies and institutions must be developed substantively, highly feasible, transparent, effective, and accompany enterprises.