In order to realize the GRDP growth target of 7.5% in 2020, Hanoi’s economy needs to expand by an average 8.6% in the last three quarters, which is an uphill task and requires strong efforts, said Nguyen Manh Quyen, director of the municipal Department of Planning and Investment.

Director of Hanoi's Department of Planning and Investment Nguyen Manh Quyen at the meeting. Source: Thanh Hai.

Failure to reach the 7.5% GRDP growth in 2020 means Hanoi would be unable to achieve the GRDP growth rate of 7.33 – 7.8% in the 2016 – 2020 period, a target set in the city’s five-year socio-economic plan, said Quyen at a meeting on April 22.

Quyen suggested Hanoi should support the development of sectors with high potential in the current crisis such as agriculture and production of medical equipment, e-commerce, e-payment, and online study, among others.

For the agriculture sector to reach the 4.04% growth target this year, Quyen suggested the priority should be given to repopulating pig herds and boosting livestock production.

Meanwhile, it is essential to speed up disbursement of both public and foreign-invested projects, which could be done via simplification of administrative procedures.

The city is determined to reduce an additional 5% of regular spending, taking the total savings in public spending to 15%.

According to a report from Hanoi’s authorities, as the Covid-19 impacts were limited in the first two months, the industry-construction sector and services were growth driving forces in the first quarter, growing 5.46% and 3.2% year-on-year, respectively.

This was key to help the city’s GRDP to expand 3.72% year-on-year in the January-March quarter, which is the slowest pace in many years and much lower than an expansion of 6.99% recorded in the same period last year.

To date, Hanoi has set up three growth scenarios, with the most optimistic one envisioning a 7.5% economic growth rate.