Tourism is the hardest hit sector in Hanoi by the Covid-19 epidemic as arrivals from China, South Korea and Japan which account for nearly 40% of total tourists coming to the capital have fallen, according to Nguyen Manh Quyen, director of the municipal Department of Planning and Investment.
|Overview of the meeting.|
Notably, Chinese arrivals to Hanoi in February plunged 93.5% year-on-year while those from South Korea dropped 51.4%; those from Singapore fell 42.4%, and the number of domestic tourists plummeted by 27%, Quyen said at a meeting on February 28.
The industrial production also suffers direct impact, Quyen informed, adding these three markets make up 50% of Hanoi's exports and 30% imports.
Specifically, the textile and garment sector sources 60% of materials from China and South Korea; equipment, phones, machinery and transportation vehicles production import 30% from the two Northeast Asian countries, Quyen said.
In the January – February period, Hanoi’s industrial production index increased 5.8% year-on-year, lower than the growth rate of 6.1% recorded in the same period last year. Some industrial products saw a sharp decline in production volume. For example, alcohol production was down 23.2% year-on-year; footwear 5.5%; and plastic products 12.5%.
In contrast, products required for anti-virus measures such as pharmaceuticals, fertilizers, and chemicals have grown 55.6% and 46.3% year-on-year in volume, respectively.
In the two-month period, Hanoi’s exports declined 19% year-on-year and imports down 20.7%.
|Nguyen Manh Quyen, director of the municipal Department of Planning and Investment.|
Meanwhile, South Korea, Japan and China also account for 41.5% of Hanoi’s total foreign direct investments (FDI), so the epidemic in these countries is causing negative impacts on the FDI inflow to Hanoi during the first months of 2020.
In the first two months of 2020, Hanoi attracted US$240.19 million in FDI, significantly lower than the US$4 billion from the same period in 2019.
Hanoi reported 3,660 newly established enterprises during the two-month period, with registered capital of a combined VND89 trillion (US$3.84 billion).
Total state budget revenue reached VND51.47 trillion (US$2.22 billion), up 4.9% year-on-year and equivalent to 18.5% of the year’s estimate, while the expenditure stood at VND8.89 trillion (US$383.8 million), or 8.6% of the estimate.
The consumer price index (CPI) in February declined 0.07% month-on-month but was up 5.16% year-on-year.
To mitigate impacts from the Covid-19 epidemic, the authority would continue with administrative reform, particularly removal and simplification of business conditions, Quyen said.
Hanoi gives strong priority to addressing businesses’ concerns while mobilizing resources to support production, consumption and tourism, Quyen stressed.