8,000 SMEs in HanoiCity Facing Shortage of Workplaces

Hanoi has over 40,000 small and medium size enterprises (SMEs). While only a small number can have workplace, most of them have to turn housing quarters into workshops in different parts of the city. After 10 years of development, the city has 20 complexes for SMEs and craft villages, but only 8 of them are in operation with 143 enterprises and investment capital of over VND3,000 billion.

 

According to Mr Vu Duy Thai, Vice-Chairman and Secretary General of Hanoi Commerce and Industry Association, 8,000 SMEs in Hanoi are in dire need of a workplace. Each year, some 4,500 enterprises are established in Hanoi and 800-900 of them need premises. Even with the completion of 20 complexes, only 10 per cent of the demand can be met. Meanwhile the enterprises looking for a workplace outside the complexes are confronted with numerous difficulties: negotiations with owners on land compensation, formalities of investment with 8 steps and some dozen signatures and seals which take a year time to complete. In such conditions, SMEs do not have enough resources and patience to do business.