Without a greater spirit of urgency of the entire political system in boosting economic recovery, Hanoi would face the risk of failing to realize the economic growth targets for this year, according to Secretary of the Hanoi Party Committee Vuong Dinh Hue.

Secretary of Hanoi Party Committee Vuong Dinh Hue at the meeting. Photo: Thanh Hai.

The Covid-19 pandemic has negatively impacted Hanoi’s economic performance in the first four months of 2020, including a disbursement rate of public investment at only 18 – 19% of the year’s target, Hue said at a meeting with local authorities in the outlying district of Dan Phuong on May 5.

This is despite the fact that Hanoi has prioritized public investment as key economic solution to help the city achieve its economic target.

According to Hue, Hanoi’s suburban districts must take a more active role in supporting economic growth, given their high potential for agricultural production and land auctions.

As Hanoi has gradually contained the Covid-19 pandemic, the city is now focusing on boosting economic growth, Hue stressed, adding there are clear responsibilities for each department and unit.

Hue said this difficult period is also an opportunity for the city to streamline the organization and lay off irresponsible staff.

Regarding Dan Phuong district, Hue requested the locality to address issues related to public investment and create favorable conditions for the development of the private sector; develop craft villages and new industrial clusters; encourage business households to formalize into enterprises.

A report from Hanoi’s Department of Planning and Investment showed that the city’s public disbursement target remains unchanged at VND37 trillion (US$1.56 billion) in spite of potential losses to state budget revenue on the Covid-19 pandemic.

For this year, Hanoi targets an economic growth rate 1.3 times higher than the national average.

The city has set up three growth scenarios, with the most optimistic one envisioning a 7.5% economic growth rate.