Hanoi, the second largest economic engine in Vietnam, targets its economy to grow by 7.5 – 8% in the 2021 – 2025 period.

Hanoi targets average 7.5 – 8% economic growth in next five years.

The target is among a number of priorities set by the Hanoi People’s Committee for the city’s socio-economic development in the next five-year plan.

Hanoi would focus on perfecting the legal framework for the socialist-oriented market economy, while pushing for rapid and sustainable economic development based on a stable macro-economic foundation.

The plan requires the local authorities to continue the economic restructuring efforts and revise the existing growth model, aiming for greater productivity, competitiveness and economic resilience; promote a comprehensive digital transformation and support the creation of digital firms capable of competing globally; improve the business-investment environment; support innovative startups and its subsequent participation in regional and global value chains; and expand trade markets.

Additionally, better infrastructure system from transportation to energy, IT, urban, agriculture, among others, is necessary to develop smart cities and improve quality of the urban environment, stated the local government.

Hanoi places an emphasis on mobilizing and utilizing resources efficiently, and promoting new economic models using digital technologies.

The city would tighten public debt management and the use of public investment funds, especially in national-level projects.

Hanoi’s economic growth averaged 7.3% in the 2016 – 2019 period, and is estimated at 3.39% in the first six months of 2020.

The capital city targets to achieve an economic expansion at 1.3 times higher than the national average for this year.