Hanoi (VNS/VNA) - Thecapital city of Hanoi needs to have a more efficient mechanisms and create amore favourable business environment, attracting large enterprises to developkey industrial products, according to many experts.

Vice Chairman of the Hanoi People's CommitteeNguyen Doan Toan said Hanoi does not have attractive mechanisms and policies toencourage large enterprises to Hanoi’s programme of manufacturing keyindustrial products.

Therefore, in the future, the Hanoi Departmentof Industry and Trade will introduce specific mechanisms and policies forenterprises whose products are recognised as key industrial products. Themunicipal State agencies will also promote further administrative reforms.

Toan has also proposed the Department of HomeAffairs and the Department of Industry and Trade to establish the HanoiAssociation of Enterprises Manufacturing Key Industrial Products.

“This association will create favourableconditions for the community of enterprises producing key industrial productsto exchange and learn among them and set up a production and consumptionchain,” Toan was quoted as saying by the Kinhte & Do thi (Urban & Economy) newspaper.

“This is also an important informationchannel for the city to receive recommendations and proposals of thoseenterprises, thereby eliminating difficulties.”

To enhance the competitiveness of the city'skey industrial products, the city’s industrial sector expects to have morehigh-tech products, contributing to boosting economic growth.

Hanoi’s key industrial products should havebrands recognised and join the national value-added chain. To reach thosetargets, it needs to focus on choosing priority sectors in which investmentswill be poured in to develop technology for production, said Tran Dinh Thien,former Director of the Vietnam Institute of Economics.

Le Hong Thang, Director of Hanoi Departmentof Industry and Trade, said to help enterprises develop key industrialproducts, Hanoi will strengthen its support for enterprises in building brandsand improving management capacity, transferring technology and scientificresearch, and training human resources to increase productivity and quality aswell as to reduce production costs. Those activities will improve the competitivenessof key industrial products.

Hanoi will continue to streamlineadministrative procedure reforms in all sectors, including tax and customs, Thangsaid.

Hanoi must identify new industrialproducts which are suitable for its long-term development plan for keyindustrial products, said Pham Hoa Binh, Chairman of Hanoi Textile IndustryJoint Stock Company.

The Hanoi Department of Industry and Tradesaid in the two years of 2018 and 2019, Hanoi has had more than 90 productsrecognised as key industrial products, holding about 42.9 percent of totalindustrial production revenue and having a total export value of 11.6 trillionVND.

However, many of those products are unable tocompete in the market and the enterprises producing them are unable to promoteconsumption, according to the experts.

Deputy General Director of Thang Long MetalJoint Stock Company Le Chi Liem said many enterprises have manufacturedsupporting products for Honda Vietnam but they have not cooperated to create aproduction chain.

Thien said the key industrial products aremainly processed but not manufactured, and have depended on imported rawmaterials. Low levels in labour productivity, qualification of labour andmanagement staff mean those products are not competitive.

Besides that, enterprises manufacturing keyindustrial products face difficulties in many fields, such as tax, land,capital, production facilities and administrative procedures, so they struggleto join production chains of big foreign brands and corporations, Thien said./.