Hanoi expects its gross regional domestic product (GRDP) growth to average 7.5-8% in the 2021-2025 period, as the capital city pursue rapid and sustainable economic growth to eventually become a green and smart city.

Chairman of the Hanoi People's Committee Chu Ngoc Anh at the meeting. Photo: Gia Huy

In Hanoi’s GRDP structure during the period, the services sector would be at the center of growth making up 65-65.5% of the local economy, followed by industry and construction with 22.5-23%, and agro-forestry-fishery with 1.4-1.6%.

The objective was set in the draft socio-economic development plan for Hanoi that was subject for discussion at a conference on April 20.

“The plan would help put the resolution of Hanoi’s 17th Party Congress into practice,” said Chairman of the Hanoi People’s Committee Chu Ngoc Anh, saying the discussion offers an opportunity for local authorities to contribute to the city’s five-year development plan.

Under the draft plan, Hanoi envisions to become a highly competitive city nationwide and of the region in a five-year time by restructuring the growth model based on technological advancement and innovation. Hanoi continues giving priority to the application of modern and environmentally-friendly technologies, along with robotics, artificial intelligence (AI), internet of things (IoT), big data, 5G, fintech, and blockchain.

The city is expected to complete the industrialization process in the next five years and attain a GRDP per capita of around US$8,300-8,500.

Meanwhile, digital economy is set to make up 30% of the GRDP, while productivity growth should be around 7-7.5%.

The draft plan estimates state budget collection in Hanoi during the 2021-2025 period at VND1,405 trillion (US$60.71 billion), and expenditure of VND613.7 trillion (US$26.52 billion).

“The city would gradually tighten spending for greater efficiency, including a shift towards capital expenditure and keeping regular spending at 50% of total expenditure by 2025,” noted the plan.

For the past five-year period, despite making up only 1% of the country’s land and 8.5% of the population, Hanoi contributes 18.5% to the country's budget revenue, 16% of GDP, and 8.6% trade turnover annually.

However, the severe Covid-19 impacts in 2020 led the city’s unsuccessful accomplishment of a number of key economic targets for the 2016-2020 period, including GRDP growth of 6.68% (target from 7.3-7.8%); GRDP per capita of VND122.74 million (US$5,300) (target from VND126-129 million or US$5,400-5,500).