Hanoi’s gross regional domestic product (GRDP) growth in the fourth quarter is expected to expand by 6.69% year-on-year, taking the growth rate in 2021 to 2.92%, lower than the target of 7.5%.

Vice-Chairman of the Hanoi People’s Committee Ha Minh Hai revealed the figures at the opening of the third session of the 16^th municipal People’s Council held today [December 7].

Secretary of the Hanoi Party Committee Dinh Tien Dung. Photos: Thanh Hai

The modest economic growth this year, according to Hai, was due to a sharp contraction of 6.89% in the third quarter on the pandemic impacts, resulting in a 9-month GRDP growth of just 1.44%.

Meanwhile, the city’s consumer price index remains under control and is on track to increase by 1.9-2.4% year-on-year, Hai said.

The vice-chairman noted a number of economic sectors that have recorded strong recovery after lockdown, including industrial production/construction with a growth rate of 8.04% in the fourth quarter and 3.85% for 2021; services with 6.84% in October-December and 2.71%, agro-forestry-fishery of 3.46% for 2021.

“These sectors have played a key role in boosting economic recovery despite the Covid-19 hardship,” Hai said.

Another highlight of Hanoi’s economy came from total budget revenue of VND242 trillion ($10.5 billion), exceeding the Government’s target by 2.7%.

Hai also noted the local authorities have been putting up measures to improve the business environment and address concerns from investors and enterprises.

Overview of the meeting.

For the 11-month period, a total of 25,000 new enterprises were established with a combined registered capital of VND345 trillion ($15 billion).

To accompany the business community, Hai referred to the city’s decision of setting up task force groups specialized in addressing concerns from enterprises, cooperatives, or business households.

Commercial banks have also been instructed to prioritize credit support for production and business activities instead of risky fields such as real estate or the stock market.

According to Hai, the Vietnam Bank for Social Policies – Hanoi Branch has so far provided preferential loans for 111,000 customers worth VND4.7 trillion ($204 million).

Meanwhile, tax authorities have waived and frozen tax and fee payments worth VND25.6 trillion ($1.11 billion) for 212,840 taxpayers, along with over 5 million people and business households receiving VND6 trillion ($262 million) in financial support.

As part of the city’s push for greater IT application in socio-economic activities, Hai said the city continues to promote public online services and e-invoices in economic transactions.

To date, Hanoi has approved the plan to accelerate digitalization until 2025, with a vision to 2030, he added.

Vice-Chairman of the Hanoi People's Committee Ha Minh Hai.

Anticipating future challenges

Addressing the third session, Secretary of the Hanoi Party Committee Dinh Tien Dung noted the uncertainties surrounding the Covid-19 situation means the city would continue to ensure safe and flexible adaptation to the pandemic in 2022.

“This would lay the foundation for the local economy to recover, ensure social welfare and improve people’s living standards,” Dung said.

Since this session is the last of the Hanoi People’s Council in 2021, Dung called for deputies to discuss and propose new Covid-19 response solutions for 2022, along with drastic measures to ensure the realization of the socio-economic development targets for next year and the 2021-2025 period.

Vice-Chairman of the Hanoi People’s Committee Hai added the priority for Hanoi is to continue restructuring the economy based on the application of science, technologies, and innovation.

“The city would continue to ensure a favorable environment for businesses through both supporting policies and administrative reforms,” Hai continued, pointing out the necessity to boost recovery of key economic fields such as services, trade, and tourism.