Hà Nội SMEs eye growth opportunities in infrastructure, digital and green economy

Hà Nội SMEs eye growth opportunities in infrastructure, digital and green economy

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.

A worker operating equipment at a Thuong Dinh Electric Wire and Cable JSC plant. — Photo hanoisme.vn

Small and medium-sized enterprises (SMEs) in Hà Nội are being encouraged to tap into opportunities arising from public investment, infrastructure development, digital transformation and the green economy as the capital seeks to mobilise the private sector in pursuit of sustainable double-digit growth.

Opportunities were discussed at a policy dialogue on August 25, jointly organised by the Hà Nội 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 Hà Nội People's Committee Office Nguyễn Tiến Thiết 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, Hà Nội 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.

"When the city's objectives are translated into the goals and actions of individual enterprises, the movement can truly gain momentum and produce substantive results," Thiết said.

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 Hà Nội Department of Finance at 52 Lê Đại Hành Street or through the online portal of the Hà Nội Support Centre for Enterprise and Investment Promotion. An artificial intelligence system is also expected to be integrated into the platform to directly answer questions related to business registration and investment.

Nguyễn Việt Hùng, director of the Hà Nội 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.

"If compliance costs are too high, businesses may face difficulties before they have a chance to grow," Hùng said, stressing the importance of transparent policies that create favourable conditions for enterprises of all sizes.

A worker operating equipment at a Thuong Dinh Electric Wire and Cable JSC plant. — Photo hanoisme.vn

Mạc Quốc 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.

Hà Nội'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, Quốc 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. 

Nguyễn Minh Hạnh, 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 Bùi 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. 

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