Building Specific, Outstanding Policies for Hanoi’s Robust Development

9:42:47 AM | 3/28/2024

To clearly improve the investment and business environment, Hanoi, the capital city of Vietnam, is working to raise the Provincial Competitiveness Index (PCI) and the Provincial Green Index (PGI). At the same time, the city is developing specific, outstanding policies, together with building the Law on Capital City, to develop Hanoi into a worthy center and driving force of growth and development of the Red River Delta, the northern key economic region and the country. Vietnam Business Forum’s reporter has an interview with Mr. Tran Sy Thanh, Deputy Secretary of the Hanoi Party Committee and Chairman of Hanoi People's Committee.

Chairman of the Hanoi People’s Committee Tran Sy Thanh awards Certificates of Merit to individuals and collectives who demonstrated exceptional contributions to administrative reform in 2023

Hanoi’s PCI 2022 scored 66.74 points (down 1.86 points from 2021) to rank 20th among 63 provinces and cities (down 10 places) and its PGI, announced for the first time by VCCI, scored 12.52 points and stood at the bottom position. How did the city endeavor to make a breakthrough?

To raise PCI and PGI rankings as compared to 2022, Hanoi focused on carrying out corrective solutions by launching Plan 167/KH-UBND dated June 7, 2023 on PCI and PGI improvements in 2023.

The city asserted its determination and creativity and administration to build an enabling government where people and businesses are placed at the center of service. Hanoi actively stepped up administrative reform, reduced the time and cost of market entry and exit for businesses; enhanced publicity and transparency in investment attraction and incentive policies; and endeavored to lead the country in building the e-government, innovative startup ecosystems and smart cities. The city issued nearly 39,000 free digital signatures to Hanoi citizens to carry out administrative procedures and electronic transactions to improve the quality of citizen service in resolving administrative procedures.

To correct administrative discipline and raise the responsibility of governmental agencies and public employees in performing tasks, the Hanoi Party Committee issued Directive 24-CT/TU on strengthening working discipline and responsibility in the city’s political system. The Hanoi People's Committee launched the 2023 Administrative Reform Plan; established a steering committee for administrative reform and digital transformation in Hanoi; and sped up the working theme of 2023: Clarifying the settlement process, progress, quality and performance of work; clarifying authority and responsibility; and clearly stating the results of inspection and settlement of leaders in performing public duties. In addition, the city focused on building and promulgating procedures for handling internal affairs; stepped up decentralization and authorization of administrative procedures for administrative agencies to improve service quality for businesses and people.

Moreover, the city is accelerating the development of the District and Department Competitiveness Index (DDCI), expected to be launched in 2024 to motivate quality improvement in addressing business administrative procedures and providing the most favorable environment for investors, companies, business households and cooperatives in the city.

In 2023, the city had remarkable improvements in the business and investment environment since the advent of many domestic and foreign investors in the city helped socioeconomic development (the city’s GRDP expanded 6.27% in 2023, 1.24 times higher than the national average and its FDI flows topped in the country). Amid slowing global economic growth and shrinking global trade, the economy of Vietnam, including Hanoi, could not avoid negative impacts. Enhancing competitiveness and improving the investment environment is always the city's central orientation to create resources from development investment capital, especially FDI inflows.

Hanoi City formalizes a partnership agreement with Minsk City (Belarus) of 2024-2026 period in the presence of Belarusian Prime Minister Roman Golovchenko and Chairman of the Hanoi People’s Committee Tran Sy Thanh

Could you please introduce important contents of the Capital Planning in 2021 - 2030, with a vision to 2050?

The Capital Planning is one of the important contents to implement Resolution 15 -NQ/TW dated May 5, 2022 of the Politburo on direction and tasks of Capital development to 2030 and further to 2050.

Accordingly, the Capital Planning, once approved, will be an important scientific basis and legal tool for the city's authorities at all levels to lead, direct and unify State administration and policy planning and create development momentum. This is also the basis for building and implementing socioeconomic development and investment plans in the city, organizing the space for socioeconomic development to ensure synchronous interconnectivity of national planning, regional planning and capital planning to untap potential advantages of the city to meet its requirements for rapid and sustainable socioeconomic development.

At the same time, the Capital Planning proposes directions for developing local important industries and selecting effective plans for organizing and developing socioeconomic activities: Plans for organizing common space, infrastructure systems, urban and rural systems, dynamic functional areas; plans for organizing development network and space for technical infrastructure systems, social infrastructure, environmental protection, effective exploitation, use and protection of natural resources, biodiversity and adaptation to climate change; plans for developing an inter-district construction planning that best meets the needs of investment attraction, social, economic and cultural development of each region and synchronous connectivity in the Capital region and the Red River Delta region, as well as asserts its position as the nerve center of the whole country.

Besides, the planning embraces building an information system and unified planning database consistent with the national planning information system while meeting the development management requirements of the city, the region and the country. It is the basis for businesses, communities and people who are investing, doing business, living and working to check, monitor and evaluate the implementation of the planning.

In addition, the Capital Planning defines five pillars of Hanoi development: (1) Culture and heritage; (2) Green development and circular economy; (3) Synchronous, modern infrastructure and modern transportation; (4) Digital society and smart cities; (5) Science, technology and innovation - employment.

Furthermore, the planning also figures out four development breakthroughs: (1) Breakthrough in institutions and governance; (2) Breakthrough in investing in synchronous, modern and connected infrastructure construction; (3) Breakthrough in developing high-quality human resources and employing humanistic resources; (4) Breakthrough in urbanity, environment and landscape.

Thus, the Capital Planning will help build the capital into a center and driving force for regional and national development as stated in Resolution 15 of the Politburo.

The Red River is planned to be an important supporting factor for urban economic development

So, when the Capital Law (amended) officially takes effect, how will it leverage Hanoi’s breakthroughs in the coming period, especially in 2024?

The Capital Law was passed by the National Assembly on November 21, 2012 and took effect from July 1, 2013. This is an important legal document for regulating the position, roles, responsibilities and policies regarding capital construction, development and protection. Accordingly, Hanoi coordinated with the Ministry of Justice to summarize and assess the law enforcement. After more than 10 years of enactment, it is difficult to carry out some goals, solutions and regulations in the law because the Capital Law is incomplete, resulting in weak policy effects. Some provisions are overarching and directional while specific mechanisms and regulations fall short. On the other hand, after the Capital Law took effect, many specialized laws were promulgated to concretize the 2013 Constitution with different regulations on the same issue as compare to the Capital Law.

Furthermore, compiling the Capital Law (amended) is necessary to further perfect the legal basis; adopt a unique and outstanding mechanism; overcome difficulties, obstacles and inadequacies arising from the law enforcement to build and develop the capital with its position and role as a political, administrative, economic and cultural center towards a smart, modern, green, clean, beautiful, secure and safe city; and achieve rapid sustainable development with pervasive effects on the Red River Delta, the Northern key economic region and the country. In particular, this activity will focus on five policy groups: (1) Organizing the Capital government in a streamlined, reasonable, modern, effective and efficient manner; 2) Attracting and employing high-quality human resources for Capital development; (3) Improving financial - budget capacity and mobilizing resources for Capital development; (4) Developing urban areas and transportation infrastructure of the Capital; (5) Building and developing ecological agriculture, modern rural areas and civilized farmers; (6) Developing culture and education - training in the Capital; (7) Mobilizing, using and developing scientific and technological capabilities, innovation and digital transformation; (8) Developing a modern healthcare system and social security system in the Capital that is comprehensive, inclusive and sustainable; and (9) Strengthening Regional connection and development.

The revised Capital Law with innovative outstanding institutional regulations will help promote the strengths of the Capital and develop Hanoi on a par with the capitals of developed countries in the region as per Resolution No. 15 of the Politburo.

Thank you very much!

Ha Thanh (Vietnam Business Forum)