Hanoi’s gross regional domestic product (GRDP) in the first six months of 2022 is estimated to expand by 7.79%, representing a 1.29-fold increase against the same period of last year, according to the municipal People’s Committee.

Production at Dong Anh C&F Company. Photo: Duy Khanh

“A series of measures for flexible and safe adaptation to the Covid-19 pandemic helped ensure Hanoi’s speedy socio-economic recovery,” stated the authorities’ report.

To date, 99.9% of locals above 18 years of age and children aged 12-17 have been vaccinated with the second dose, while in those aged 5 to 12, the rate is 70%.

According to the municipal authorities, the high vaccination rate has been one of the key factors for Hanoi to reopen its economic activities and lay the foundation for growth.

During the six months, the city’s state budget revenue is estimated at VND177 trillion (US$7.6 billion), or 56.8% of the year’s target, and 120.2% of the same period of last year.

Domestic revenue, accounting for a lion’s share in the overall state budget income, rose by 20.8% year on year and reached 56.7% of the year’s estimate.

The economic recovery has also been evidenced by the positive figure of total revenue of retail sales and services which rose by 21.8%, nearly triple the growth in the six-month period of 2021.

The Government’s policy of reactivating tourism has also led to an 80% increase in the number of foreign tourists to Hanoi, marking a stark contrast with a contraction of 86.2% in the same period of last year.

Rising concern over inflation

The report, however, noted the city’s consumer price index (CPI) during the first five-month period expanded by 3.04%, significantly higher than the 0.97% rise in the same period of 2021.

“This has put huge pressure on efforts to contain inflation below the 4% target,” it said, with transportation rising the highest among CPI basket of goods and services by 15.3%.

The report pointed out the disruption of the global supply chain amid the Russia-Ukraine conflict and the rising prices of strategic commodities on the global market as the main reasons.

Meanwhile, industrial production in the five months rose by 6.4%, less than the 9.4% recorded in the same period of last year, which reflected the ongoing struggle of businesses with the Covid-19 impacts.

In this context, the number of businesses suspending operation surged by 56%, and those under the dissolution process by 12%.

Stepping up public investment

To further accelerate socio-economic recovery during the remainder of the year, Vice Chairman of the Hanoi People’s Committee Le Hong Son said the city would focus on stepping up the disbursement of public funds, especially in key projects with high spillover effects.

Hanoi’s leader also instructed market surveillance authorities to supervise the prices of commodities to ensure sufficient supplies and avoid possible shortages.

Given the pandemic situation is now under control, the city would shift its focus to restructuring the economy and promoting new business models of the night and digital economies, along with digitalization in the tourism sector, he added.