Ha Noi would use some US$1 million annually for business promotion on the American television network CNN over the next two years, municipal People’s Committee Chairman Nguyen Duc Chung told the press on Monday.

He made the announcement on the sideline of a dialogue with enterprises, as Ha Noi authorities said they would extend support to companies in a context that a growing business community still face significant obstacles in their operations.

“This year witnessed strong development of Ha Noi’s business community,” the municipal Party Committee Secretary Hoang Trung Hai said.

In 2016, nearly 23,000 new companies were established in the capital, raising the total number to 202,255.

“This is the highest rise in six years, showing increasing business confidence,” Hai said, adding that the increase helped the city reduce unemployment, foster economic growth and enhance people’s lives.

People’s Committee Vice Chairman Nguyen Doan Toan said the city would be a vanguard in improving the business climate and supporting enterprises. “The city requires administrative units to fully publicise master plans, policies and procedures,” he said.

However, the meeting was told that companies, especially small- and medium-sized enterprises (SMEs), still face significant difficulties in accessing land and capital, applying technology and developing markets.

Some policies remain incomprehensive holding back businesses, participants said.

Do Quang Hien, chairman of the local SMEs association, said procedures related to business registration, land allocation and asset evaluation were still complex.

He added that private investors still hesitated to invest in equitised businesses because the State retains a controlling stake in the management appraratus of many firms.

A representative of Hanoimilk said the company was seeing obstacles in clearing ground for its grass growing and cow breeding project in Me Linh District. He asked municipal authorities for support related to compensation rates to ease pressure on its investments.

Vu Thi Hau, Deputy General Director of the Nhat Nam JSC, which owns the Fivimart chain, told the local press that certain Ministry of Science and Technology regulations on imported goods discourage enterprises.

Importers have to have their goods examined at different places by different agencies, incurring significant expenses, according to Hau.

Chung said many business promotion programmes were inefficient, since the value of trade agreements reached during international exhibitions and fairs was smaller than the amount spent on promotion.

"Investment promotion funds are to be restructured," he reportedly said.

Chung also said that the city would establish a special working group to deal with business proposals and complaints on a “one-stop shop” model from January 1, 2017.

“We have carefully discussed this for six months. The city aims to settle every request of enterprises within a week,” he said. — VNS