On April 16, Party Central Committee member, Vice Secretary of the Hanoi Party Committee and Chairman of the Hanoi People's Committee Vu Dai Thang chaired a dialogue conference with small and medium-sized enterprises (SMEs) across the city in 2026.

Attending the conference were Nguyen Xuan Luu, member of the Hanoi Party Committee Standing Board and Vice Chairman of the Hanoi People's Committee; Bui Anh Tuan, Director General of the Agency for Private Enterprise and Collective Economy Development under the Ministry of Finance; leaders of city departments and agencies; representatives of business associations and industry groups; and small and medium sized enterprises operating in the city.

In his opening remarks, Vice Chairman of the Hanoi People's Committee Nguyen Xuan Luu said the conference takes place at a historically significant moment, associated with the success of the 14th National Party Congress, marking the beginning of a new era of national advancement, along with the successful election of deputies to the 16th National Assembly and People's Councils at all levels for the 2026 to 2031 term. These events reaffirm public trust, consensus and support.

Luu emphasized that the conference not only provides updates on policies and developments but, more importantly, serves as a platform for the city to directly listen to the business community, identify real challenges and bottlenecks, and develop effective solutions.

He added that the event also concretely implements major central policies on enterprise development, including Resolution 68 on private sector development and Resolution 79 on improving state economic efficiency.

Referring to the context of 2026, Luu noted that global and regional developments remain complex and unpredictable, with prolonged geopolitical tensions affecting energy prices, global supply chains and the investment environment, placing significant pressure on businesses.

In that context, Hanoi has implemented comprehensive and decisive measures for socio-economic development and achieved positive results in the first quarter of 2026. GRDP growth reached 7.87%, a high level compared to recent years.

Budget revenue exceeded VND260.7 trillion ($9.9 billion), equivalent to 40.1% of the annual estimate, while local budget expenditure reached over VND52.2 trillion ($2 billion).

At the same time, foreign investment reached nearly $480 million. The city registered more than 9,000 newly established enterprises, with strong growth in registered capital.

The trade and service sector continued to expand, with retail sales and consumer service revenue increasing by more than 11%.

"These results reflect the important contribution of the business community, especially small and medium-sized enterprises, which are dynamic, flexible and play a core role in the capital's economy," Luu stated, expressing appreciation for the entrepreneurial spirit of initiative, creativity and resilience.

However, he acknowledged that these results are only initial and fall short of breakthrough expectations. Some growth drivers have not fully realized their potential, while businesses still face difficulties in accessing capital, land and production premises, alongside rising input costs.

In addition, administrative procedures in some sectors remain slow and implementation has not been sufficiently decisive, affecting production and business activities.

On that basis, the city is shifting from a management mindset to one focused on facilitation and service, placing businesses at the center of development and using service effectiveness as a measure of governance performance.

In the coming period, Hanoi will focus on improving institutions, developing modern infrastructure, mobilizing resources and promoting science, technology, innovation, digital transformation and high-quality human resources.

Notably, the revised Capital Law is expected to be passed by the 16th National Assembly during its first session, with some provisions effective from May 1 and full implementation from July 1. The law will provide strong decentralization and authority for the city in governance and administration.

The city encourages businesses to actively study and contribute feedback to ensure policies are practical and effective, especially in areas such as credit, finance, land and administrative procedures.

Luu also called on departments and local authorities to enhance accountability, directly engage with businesses and promptly address their concerns without passing responsibility or avoidance.

He stressed that businesses should not have to make repeated visits for a single administrative procedure and that leadership accountability will be assessed based on results and business satisfaction.

For the business community, city leaders expect continued initiative, innovation, and competitiveness, alongside the application of science and technology, strict legal compliance, transparency, and active participation in policy development.

"The city looks forward to receiving candid and substantive feedback from businesses to improve policies and governance effectiveness," Luu emphasized.

At the conference, city leaders directly listened to proposals from enterprises, identifying real bottlenecks to support sustainable business development.

They also acknowledged the thoughtful and practical contributions of associations and enterprises to improve governance and create a more transparent and efficient business environment.

More substantive dialogue to remove business difficulties

Opening the dialogue session, Chairman of the Hanoi People's Committee Vu Dai Thang emphasized that the city places strong focus on improving policies to support small and medium-sized enterprises, which play a vital role in job creation, livelihoods and economic growth.

He said that in line with Party and State policies on private sector development, Hanoi has introduced and implemented various practical policies to support SMEs and enhance their contribution to the economy.

Alongside administrative reform and digital transformation, the city has also developed a business support ecosystem, including access to land, human resources, credit policies and production support.

These efforts have gradually built a foundation for a favorable investment and business environment across sectors, such as tourism, services, trade, industry, handicrafts and traditional craft villages.

However, Thang acknowledged that businesses face multidimensional challenges amid changing domestic and global conditions, particularly rising input costs and market volatility.

Therefore, continued listening, support and problem-solving for businesses remain urgent priorities.

"The city wants to hear directly from associations and SMEs about their difficulties and proposals to find solutions and create conditions for stable development," Thang stated.

He affirmed that city leaders and departments are ready to openly discuss and address issues within their authority at the conference, while also recording and synthesizing proposals for future policy improvements.

He called on participants to focus discussions on specific and practical issues to help the city refine mechanisms and policies.

Proposals to remove eight major barriers for SMEs

Presenting on challenges and recommendations, Nguyen Minh Thu, Vice Secretary-General of the Hanoi SME Association and Deputy Director of the APEC Institute for Entrepreneurship Research and Training, said the association, established in 1995, now has over 11,000 members with 28 affiliated clubs and branches across various sectors.

The association has also expanded international cooperation with six representative offices in Singapore, Japan, Austria, the United Kingdom, the United States and the Czech Republic, supporting member enterprises in market access and integration.

Thu acknowledged the city's strong support for SMEs, particularly through administrative reform, digital transformation, trade promotion and business banking connections, as well as maintaining regular dialogue channels.

These efforts have helped businesses recover, stabilize and adapt. However, SMEs still face many challenges and have proposed several key recommendations.

First, regarding access to capital, the association proposed promoting credit mechanisms based on cash flow, orders and contracts rather than collateral, strengthening credit guarantee funds, shortening appraisal times and developing tailored credit packages.

Second, on taxation and compliance costs, it proposed simplifying procedures, providing clear guidance, offering training and low-cost advisory services and establishing rapid support channels.

Third, on land and production space, it recommended transparency in land and facility availability, allocating reasonable land quotas in industrial clusters, supporting initial rental costs and developing shared infrastructure models.

Fourth, on investment and regulatory procedures, it proposed strengthening inter-agency coordination, issuing clear guidelines and checklists, shortening processing times and clarifying responsibilities.

Fifth, on digital transformation and green transition, it recommended expanding support programs, simplifying access conditions and prioritizing key sectors.

Sixth, on market access and logistics, it suggested enhancing trade promotion, supporting participation in fairs and exhibitions, facilitating access to distribution systems and cross-border e-commerce and providing market information.

Seventh, on labor and training, it proposed strengthening demand-driven training, improving linkages between institutions and businesses and supporting management and digital skills development.

Eighth, on legal support, it recommended establishing regular legal assistance mechanisms, public Q&A systems and specialized dialogue sessions.

Based on these proposals, Thu suggested maintaining effective dialogue and establishing a unified mechanism to receive and handle business feedback.

She also called for continued administrative reform, reduced compliance costs and more practical and accessible support policies.

"The Hanoi SME Association hopes to continue receiving strong support from the city to recover quickly, develop sustainably and contribute more to economic growth," she said.

At the conference, Tran Van Minh, Vice Chairman and Secretary-General of the Hanoi Young Business Association, said the organization represents more than 3,300 enterprises across various sectors.

He noted that the young business community highly values the city's decisive support through practical policies and initiatives.

Notably, the city has approved a program supporting SMEs for 2026 to 2030, issued a plan on fully online public services, restructured 293 administrative procedures and promoted logistics development.

Dialogue and direct engagement between authorities and businesses have also been maintained regularly, helping address emerging issues.

"These efforts demonstrate the city's strong commitment and responsibility toward the business community, which we highly appreciate," Minh said.

However, he also highlighted persistent barriers affecting SMEs, which are considered the backbone of the capital's economy.

These include difficulties in accessing capital and production space, with land costs accounting for about 25% of total investment, while annual land lease rights cannot be used as collateral for bank loans.

As a result, many businesses exhaust financial resources after building facilities and cannot invest in technology or expansion.

Access to capital remains a long-standing challenge, especially amid rising interest rates and tighter credit limits, making stability and predictability in credit policies essential.

Another major bottleneck is digital transformation. Many SMEs face a lack of financial resources, unclear direction and insufficient IT personnel, leaving them unable to effectively implement digital solutions.

Policy instability and administrative procedures also remain concerns, with some regulations changing rapidly without clear roadmaps, affecting business planning.

From this reality, the Hanoi Young Business Association proposed solutions within the city's authority.

On capital and land, it suggested allowing annual land lease rights to be used as collateral or establishing specialized credit guarantee programs, along with maintaining rental support policies for production and technology enterprises.

The city was also encouraged to develop noncredit financing channels to diversify funding sources.

For digital transformation, the association proposed creating a catalog of proven shared digital solutions and piloting a Digital Operations Support Center providing subscription-based services to help businesses manage systems and ensure information security.

On administrative reform, businesses called for increased application of technology, reduced direct contact, automated processes, greater transparency and shorter processing times.

Beyond recommendations, the association reaffirmed its commitment to partnering with the city in economic development, serving as a bridge between businesses and authorities.

In the coming period, it plans to organize a Private Economic Forum in September 2026, along with networking events and trade promotion programs and participate in advisory councils.

Concluding his remarks, Minh emphasized that although SMEs are small in scale, they play a crucial role in sustaining economic vitality and growth.

With strong leadership, coordinated support and business efforts, current bottlenecks can be resolved, creating a foundation for stronger growth and contributing to Hanoi's rapid and sustainable development goals.