Private economy - an important driving force in Hanoi's growth model

Creating a new growth model

The political report of the 17th Party Committee of the City presented to the 18th Congress affirmed that Hanoi will strongly innovate and transform from the model of “management” to “state governance of the economy, creating development”, in which innovation, science - technology and people are the pillars. This is a strategic orientation, reflecting a major shift in development thinking, growth based on productivity, knowledge and creativity.

The Hanoi Party Committee aims to develop the private economy into the most important driving force of the capital's economy. The city focuses on removing barriers in mechanisms and policies; minimizing administrative procedures and compliance costs for businesses. At the same time, it creates all favorable conditions for private businesses to access resources in terms of land, capital, technology, and high-quality human resources to become large-scale enterprises with strong potential and high competitiveness in the region and internationally.

Photo caption — Hanoi Party Secretary Bui Thi Minh Hoai visits the capital's OCOP product display area. Photo: Viet Thanh

The Hanoi People's Council has issued Resolution 16, stipulating a number of specific expenditure contents and levels to support small and medium-sized enterprises (SMEs) in the 2026-2030 period. The Resolution is considered an important "policy lever" to concretize the private sector development orientation set forth by the City Party Committee.

According to the resolution, Hanoi focuses on key support groups: Training and improving the quality of consultants for SMEs - 100% funding support, up to 20 million VND/person/year. In-depth consulting for manufacturing, creative industry, and digital technology enterprises, with a maximum support level of 300 million VND/enterprise/year. Support for the formation of innovative startups, including 50% of the cost of renting equipment and premises at technical facilities, incubators, and shared working areas.

At the same time, the City will implement the SME Support Project for the period 2026 - 2030, aiming to help businesses participate more deeply in the global supply chain, becoming suppliers and supporting businesses for large corporations. The goal by 2030 is for Hanoi to have about 300,000 private enterprises, contributing strongly to growth, employment and social welfare.

The city also focuses on developing cooperative economy, collective economy and household production and business, creating conditions for them to transform into enterprises and participate more deeply in the market. In addition, Hanoi plans to establish the city's technology enterprises in the fields of science, innovation and digital transformation - playing the role of "guide" for the private sector in the green and digital transformation journey.

Accompanying businesses

According to the report of the Hanoi People's Committee, as of June 2025, there are more than 155,000 enterprises operating in the area, ranking second in the country in terms of quantity, of which 97.2% are private enterprises. This sector is contributing about 45% of the City's GRDP, accounting for nearly 58% of social investment capital and creating 80% of new jobs each year - a figure that shows the vitality and irreplaceable role of the private sector in the capital's economy.

However, as Chairman of the City People's Committee Tran Sy Thanh pointed out at the Workshop "Unlocking resources - Breakthrough in the development of the capital's private economy" (June 2025), this area still has many limitations: most enterprises are small and micro-sized; management and technology capacity is still weak; the ability to connect and participate in the global value chain is still limited.

For the private economy to truly become a driving force, Hanoi must not only “pave the way” but also accompany businesses in the long term. The city is determined to unleash all resources, create a favorable business environment, and at the same time foster the spirit of self-reliance, creativity and aspiration to rise in each entrepreneur and each worker.

Investment attraction policies are designed towards quality, selectivity, and prioritization of high-tech, environmentally friendly, low-emission projects with the potential to spread in the global value chain. Hanoi advocates using public investment to lead private investment, thereby activating social capital flows into key projects, urban infrastructure, and green industry.

According to Chairman of Hanoi People's Committee Tran Sy Thanh, developing the private economy is not only a simple economic development task, but also a political requirement to realize the aspiration for national development. As a locomotive, Hanoi needs to create a favorable environment for private enterprises to develop, promote innovation, support startups, and form a team of brave entrepreneurs with an international integration mindset.

From the mindset of “state-led economy” to “private economy is an important driving force”, Hanoi is demonstrating a fundamental shift in development thinking. This change is not only in policy, but also in perception – considering businesses and people as the center of innovation, the subjects of growth creation.

Source: https://baotintuc.vn/kinh-te/kinh-te-tu-nhan-dong-luc-quan-trong-trong-mo-hinh-tang-truong-cua-ha-noi-20251014064048679.htm