Hanoi is determined to achieve and excel socio-economic targets for 2020 and the five-year plan 2016 – 2020, according to Chairman of the Hanoi People’s Committee Nguyen Duc Chung.

Chairman of Hanoi People's Committee Nguyen Duc Chung at the meeting.

In addition to favorable conditions, there remain challenges for Hanoi to fulfill its targets, including internal issues of the economy itself, and uncertainties of the world economy, said Chung at a meeting on December 11.

Chung requested the local authorities to continue promoting economic development in parallel with revising growth models, at the same time encouraging greater investment capital from foreign investors and the private sector, as well as speeding up the disbursement rate of public investment funds.

According to Chung, the state budget revenue in Hanoi in 2020 is estimated at VND278.8 trillion (US$12.1 billion), equivalent to the target set by Prime Minister Nguyen Xuan Phuc and up 5.3% against the actual figure of 2019.

Chung also informed the investment capital amount set for development in 2020 is VND44.91 trillion (US$1.94 billion), including VND28.1 trillion (US$1.25 billion) for city-level projects and VND16.81 trillion (US$729.41 million) at district- and commune levels.

Chung requested local authorities to closely cooperate with project owners in speeding up the site clearance process, which is considered one of the common reasons for delay in construction of projects.

On the back of the estimated GRDP growth rate of 7.46% in 2019, a four-year high, Hanoi targets the GRDP in 2020 to grow at least 7.5% onwards.

This would result in income per capita of VND136 million (US$5,871), significantly higher than Vietnam’s GDP per capita of US$3,000 in the 2016 – 2020 period and an estimated US$4,688 in 2021 – 2025.

Such high growth rates in 2019 and 2020 would help Hanoi achieve an average annual GRDP growth rate of 7.33% - 7.41% in the 2016 – 2020 period, which is in line with the city’s five-year socio-economic development plan.

Other key targets include the coverage of health insurance at 90.1%; a reduction of 0.42% in the rate of poverty, meaning no more poor households by the end of 2020 in Hanoi; 100% of industrial parks with waste water treatment system; export growth rate at 7.5 – 8%; and growth of investment capital for development at 10.5 – 11%, among others.

Infographic: Ngoc Thuy

In 2019, Hanoi expects to have seven out of 22 socio-economic development indicators exceed the targets, including the GRDP growth rate, total investment, exports, voluntary social insurance coverage, poverty reduction, unemployment rate in urban areas, and clean water access in rural areas.