Hanoi’s Index of Industrial Production (IIP) in the first two months of 2021 expanded by 7.5% year-on-year, according to the municipal Statistics Office.

Production at General Electric in Hai Phong. Photo: Le Sang

Upon breaking down, the mining industry’s output decreased by 9.8% year-on-year in the January-February period, but posed little impact to the overall growth due to its modest contribution to the economy. The manufacturing and processing industry, accounting for 96.5% of total production value in the industry sector, expanded 7.8%.

Production and distribution of electricity rose 5.8% year-on-year while water supply, sewage treatment and water collection went up 5.7%.

Subsectors that increased sharply due to growing demand during the period include computers and electronic products (up 37.7% year-on-year); transportation vehicles (17.5%); electricity equipment (16.5%); and beverage (14.3%).

According to the report, the employment at industrial companies decreased by 0.6% year-on-year during the two-month period. That of state-run sector was down by 1%; that of the private sector contracted 4.8%, while jobs in the foreign-invested sector rose by 2.8%.

In terms of economic sectors, the employment in manufacturing and processing sector slightly rose 0.1% year-on-year; followed by electricity production and distribution (-0.1%); water supply, sewage treatment and water collection (-0.6%); and mining (-47.7%).

Exports surge nearly 40%

In the January – February period, Hanoi’s exports slightly rose by 12.7% year-on-year to US$2.34 billion, and imports surged 25.7% to US$5.4 billion, resulting in a trade deficit of US$3.06 billion.

Export items that recorded strong growth in the first two months were computers, electronic products and parts with US$409 million, up 39.4% year-on-year; machinery and equipment with US$341 million (33.3%); wood and wooden products with US$116 million (42.9%).

The city's state budget revenue dwindled 3.4% year-on-year to VND51.4 trillion (US$2.22 billion), or 20.4% of the year’s estimate.

Meanwhile, Hanoi spent VND9.04 trillion (US$390.7 million) during the period, or 8.3% of the estimate and up 1.5% year-on-year.

Foreign direct investment (FDI) commitments to Hanoi in the year to February 23 hit US$58.9 million. The investors registered to pour US$14 million into 28 fresh projects, and an additional US$4.1 million into nine existing projects. They have also injected US$40.8 million to acquire stakes or contribute capital in local companies.

Around 3,400 enterprises were established during the two-month period with registered capital of VND36.6 trillion (US$1.58 billion), down 8% in the number of enterprises and 54% in capital year-on-year. The number of enterprises temporarily suspending operations during the period rose sharply by 22% year-on-year to 4,300, while 3,400 resumed operations, up 101%.

The consumer price index (CPI), the main gauge of inflation, climbed 1.8% month-on-month in February and 1.75% versus last December. This resulted in an average decline of 0.5% year-on-year in the first two months of this year.

While the Covid-19 outbreak in northern provinces and cities near the Tet holiday has caused negative impacts on consumer spending nationwide, total retail sales of consumer goods and services in Hanoi in the two-month period remained positive with a 5% year-on-year growth to VND100 trillion (US$4.32 billion).