Following five years of implementing program No.03-CTr/TU of the Hanoi Party Committee on economic restructuring for rapid and sustainable economic development in 2016 – 2020, Hanoi’s major economic indicators have grown strongly and contributed significantly to the overall growth of the country.
|During the 2016 – 2020 period, Hanoi’s GRDP was estimated to have expanded by an average of 7.39%.|
During the 2016 – 2020 period, Hanoi’s gross regional domestic product (GRDP) is estimated to have expanded by an average of 7.39%, which is in line with the target set by the city’s leaders of 7.3 – 7.8%.
This led to an estimated income per capita of VND127.6 million (US$5,420) in 2020, a 1.5-fold increase against that of in 2015 and 1.8 times the national average.
Meanwhile, the productivity averaged 6.15% during the five-year period, exceeding the target of 5.4 – 5.9%, as well as the average of 4.9% in the 2011 – 2025, and higher than the country’s target of 5.8%.
During the 2016 – 2020 period, total investment capital stood at VND1,742.3 trillion (US$75.2 billion), reaching the target of VND1,700 – 1,750 trillion (US$73.34 – 75.5 billion) and equivalent to 39.2% of its GRDP.
In 2019, the number of tourists coming to Hanoi reached 28.94 million, including 7.03 million foreigners.
Additionally, inflation was brought under control with the consumer price index (CPI), a gauge of inflation, sharply declining to below 3% from 6.3% in 2015.
The economic restructuring process has been shifted towards greater focus on services, industry and construction, with the improved legal frameworks for a socialist-oriented market economy focusing on providing greater support for the private sector. As a result, the contribution of state-owned enterprises (SOEs) to the state budget decreased from 37.77% in 2015 to 34.8% in 2019, while that of the private sector rose from 37.5% in 2015 to 29.2% in 2019.
Notably, Hanoi attracted over US$25.5 billion in foreign direct investment (FDI) in the 2016 – 2020 period, a 4.08-fold increase against the 2011 – 2015 and staying at the top of the country as a favorite investment destination in 2018 – 2019.
Hanoi is currently home to 6,278 ongoing foreign projects with registered capital of over US$47.7 billion, of which US$28.5 billion has been disbursed.
By the end of 2020, Hanoi is on track to have 306,240 enterprises, nearly 4-times increase from the 2011–2015 period, which form a major driving force for Hanoi to ensure its goal of global integration for higher economic growth and social security.
Amid the severe impacts of the Covid-19 pandemic, Hanoi’s export growth averaged 9% in the 2016 -2020 period, significantly higher than the rate of 5.5% in 2011 – 2015, thanks to the efforts of local enterprises in expanding their reach to international markets.
Hanoi’s endeavor towards rapid and sustainable economic growth has also been demonstrated by improvements in the Provincial Competitiveness Index (PCI), standing at 9th out of 63 provinces and cities in 2020, up 15 places compared to 2015.
Nevertheless, Hanoi is still facing major challenges including overloaded transportation infrastructure, rapid urbanization process, environmental pollution and growing global uncertainties, among others.
Chairman of the Hanoi People’s Committee Chu Ngoc Anh expected the city to revise its growth model for a more sustainable and balanced growth in the future.
For long-term growth, Secretary of the Hanoi Party Committee Vuong Dinh Hue pointed to the necessity of applying technological advances from the Industry 4.0 for further breakthroughs in development.
With an estimated gross regional domestic product (GRDP) growth rate of 3.49% in the first eight months of 2020, 1.92 times Vietnam's, Hanoi targets its growth to range from 4.5% to 5% for 2020.