Despite negative impacts from the second outbreak of the Covid-19 pandemic, Hanoi continues to achieve comprehensive economic results, including an estimated GDP growth of 3.98% in 2020, 1.5 times higher than the national average.

Chairman of Hanoi People's Committee Chu Ngoc Anh at the session.

The statement was released by Chairman of the Hanoi People’s Committee Chu Ngoc Anh at a session of the municipal People’s Council on December 8.

The industrial and construction sectors, a driving force for the local economy, recorded high growth rate of 6.39%, indicating a clear recovery trend, Mr. Anh noted.

While the consumer price index (CPI), seen as a gauge for inflation, remains under control with an estimated expansion rate of 2.73-2.79% for the year, the agricultural sector has served as a foundation for the economy at a time of crisis with a record growth of 4.2%.

This year, the city’s state budget revenue is on track to reach VND280 trillion ($12.12 billion), equivalent to 100.2% of the estimate and up 3.5% year-on-year, while the city’s spending stays around VND87 trillion (US$3.76 billion), or 84.7% of the estimate.

“Hanoi’s business environment continues to be improved as more efforts are focused on addressing concern of the business community,” Mr. Anh suggested.

For two consecutive years, Hanoi was included in Vietnam’s top 10 business-friendly localities, standing at ninth out of 63 provinces/cities in the 2019 Provincial Competitiveness Index (CPI) with score of 68.8.

Hanoi’s efforts in improving the business environment has also been reflected in its second place nationwide in the 2019 Public Administration Reform (PAR) Index.

Amid the severe economic impacts, Hanoi could still able to attract a total of US$4 billion in foreign direct investment (FDI) and VND145 trillion (US$6.28 billion) in investment from domestic sources.

The number of newly established enterprises in 2020 is forecast to reach 26,000, accounting for 20% of total nationwide. This will bring the total number in Hanoi to 303,000, or 23% of the country and remains second in Vietnam, only behind Ho Chi Minh City.

“The city’s strong push in realizing the dual target of both containing the pandemic and boosting economic recovery stay central in attaining these results,” Mr. Anh asserted.

Overview of the session.

Innovation and technologies to spur Hanoi’s development

Among priorities ahead, Hanoi has already started the planning process to fulfill 2021 socio-economic development targets, he noted, referring to a set of 23 criteria set by the municipal People’s Council.

This included a GRDP growth of 7.5%, the expansion of social investment by 12%, exports by 5%, inflation below 4% and a decline of 20% in the poverty rate under the city’s new standards.

“Hanoi strives to enhance labor productivity and the city’s competitiveness based on science, technologies and innovation,” he said.

 For the period 2021-25, Hanoi sets a GRDP growth target of 7.5-8%, in which the services sector would make up 65-65.5%, industry and services 22.5-23% and agro-forestry-fishery 1.4-1.6%.

By 2025, Hanoi is expected to complete the city’s industrialization and modernization process, with the GRDP per capita rising to US$8,300-8,500. The figure will be nearly double the nation’s GDP per capita that is projected to reach US$4,688 in the period 2021-25.