HÀ NỘI — Hà Nội is rolling out a series of bold policy breakthroughs to reshape the way the capital city supports innovation and start-ups, seeking to create an ecosystem where new ideas can be tested, financed and commercialised.

The Capital Law is giving Hà Nội greater policy space to support businesses as the city accelerates administrative reforms, rolls out special mechanisms and expands incentives for innovation and technology-driven enterprises to improve its competitiveness and create new growth drivers based on science, technology, innovation and digital transformation.

“The city is moving towards a model in which the government does not simply provide support, but creates the conditions for businesses to innovate, experiment and grow," said Lê Trung Hiếu, deputy director of the Hà Nội Department of Finance.

Hà Nội has set a target of cutting 50 per cent of unnecessary administrative procedures as it seeks to build a more service-oriented administration and reduce the cost of doing business.

A major step came with Resolution 12/2026/NQ-HĐND from the municipal People’s Council, which took effect on July 1 and puts special business registration mechanisms under the Capital Law into practice.

The resolution removes several document requirements, including company charters and minutes of meetings for establishing branches, while replacing seven paper forms with online searches through the national business registration portal.

Processing times have also been shortened to two working days for business registration and four working days for dissolution or termination of branch operations.

While such reforms are aimed at businesses generally, their significance is particularly important for start-ups, which often operate with limited resources and need to move quickly from an idea to a legally established business.

Beyond making it easier to register a company, the city is preparing to introduce regulatory sandboxes for emerging sectors, including green technology, smart cities and the low-altitude economy, while developing a State-directed, business-operated model aimed at attracting around 35 per cent of the country's start-ups.

Hà Nội is already considering a sandbox proposal for a Level 4 autonomous vehicle system developed by Phenikaa-X to allow the company to test its technology under real-world conditions.

The capital city is also building a policy framework dedicated for innovative start-ups, especially for those working in digital transformation.

According to Hiếu, the special mechanisms under the Capital Law has allowed eligible innovative start-ups to receive corporate income tax exemptions, while key employees can be exempted from personal income tax during their first five years of operation.

Another key element of Hà Nội's strategy is the establishment of the Hanoi Innovation Centre JSC (HiHub), officially launched on February 26 to connect innovation centres and support the city's innovation ecosystem, while helping operate the city's venture capital fund under a model of public investment but private management.

The model allows the State to share investment risks with innovative start-ups while seeking to mobilise capital from private and international investors.

According to Hà Nội People's Committee Deputy Chairman Trương Việt Dũng, the establishment of HiHUB reflects a shift from grant allocation to co-investment and risk sharing, and from fragmented support to ecosystem coordination.

“Only when innovation is placed within a clear, disciplined and accountable market structure can it truly become a new productive force for the capital,” he said.

Hà Nội is operating an idea exchange platform to help start-ups commercialise intellectual property and connect innovative ideas with potential markets.

The city is also launching a support programme for small and medium-sized enterprises (SMEs) and plans to train 5,000 chief executive officers by 2030.

Nguyễn Minh Quý, deputy president of the Hà Nội Young Entrepreneurs Association, said the city's support policies are tackling key difficulties faced by SMEs.

Quý urged firms, especially start-ups, to learn about and make use of the city's support mechanisms to improve competitiveness and expand development opportunities.

According to the Hà Nội Department of Finance, businesses can access free consultancy services at the department or through the portal of the Hanoi Support Centre for Enterprise and Investment Promotion. AI is also expected to be integrated into the system to provide online assistance with business registration and investment procedures.

With special mechanisms and bold reforms, Hà Nội can be seen as a launchpad for young innovators and a testing ground for new technologies, ideas and effective business models, said Trần Quang Hưng, deputy secretary of the Hà Nội Youth Union and chairman of HiHUB.

According to the Global Start-up Ecosystem Index 2026 released by StartupBlink, Hà Nội accounts for 35 per cent of Việt Nam's start-up firms and recorded growth of 48.6 per cent between April 2025 and April 2026. The capital also climbed 30 places to rank 118th globally.

In the first six months of 2026, the city saw around 19,000 newly established businesses with combined registered capital of nearly VNĐ398 trillion, up 21 per cent in number and 145 per cent in registered capital from the same period last year.

In 2025, more than 32,400 new businesses were established in Hà Nội, the highest figure nationwide. — VNS