Hanoi’s economy continues its positive progress in all fields during the first ten months of this year and stays firmly on track to end the year on a high note.

Production at Garment 10 Company. Photo: Thanh Hai

Substantial progress across all sectors

According to the municipal Department of Statistics,  the city’s industrial production index expanded by 8.7% year on year during the 10 months, in which the manufacturing and processing, accounting for 96.5% of total production value in the industry sector, went up by 8.9% while electricity production and distribution by 6.1%.

The resumption of socio-economic activities in Hanoi has also led to the recovery of the tourism sector, with the combined number of domestic and foreign tourists arriving in Hanoi increasing 2.3 times in one year to 1.93 million.

The economic highlight was the city's exports in the 10 months, which totaled US$14 billion, up 13.6%, of which US$7.4 billion was from the domestic sector, up 10.3%, and US$6.6 billion from the foreign-invested sector, up 17.7%.

Export items that recorded strong growth in the January-October period were garments with $2.1 billion, up 21.6% year on year; computers and electronics products with $2 billion, up 22%; equipment at $1.66 billion, up 1.7%; petroleum products with $996 million, up 88.5%.

In October, the city had 2.500 newly established enterprises,  up 37% year-on-year, bringing the 10-month total to 24,900, up 29%, and combined registered capital to VND283 trillion (US$11.4 billion), an increase of 7%.

A favorable business environment has also led to nearly 9,000 businesses returning to operation, up 2.4%.

“The city maintains the rate of businesses registering in the mercantile registry online at 100%,” stated the agency.

Meanwhile, Hanoi has attracted $1.28 billion in foreign direct investment during the 10-month, up 27%, including 283 fresh projects with registered capital of $185.1 million, 163 existing projects with additional funds of $573 million, and foreign investors contributing capital and buying stakes in 324 projects with $521.9 million.

Total budget revenue in the city during the period has reached 94.6% of the year’s estimate and is up 12% year on year to VND294.8 trillion ($11.9 billion).

According to the report, the city is taking drastic measures to further accelerate public investment. So far, the actual disbursed of public funds increased by 12.3% year on year to VND36.4 trillion ($1.46 billion), representing 71.4% of the target.

Pushing for high growth

Hanoi’s gross regional domestic product (GRDP) growth during the third quarter rose by 15.71% year on year, taking the economic expansion rate to 9.69% for the nine months.

This puts the city in a favorable position to realize the whole-year growth target of around 7-7.5%.

For the remaining period of the year, the Hanoi People’s Committee aims to focus on the development of priority sectors, including tourism, entertainment, transport, and logistics, along with accelerating execution of water provision projects in rural areas, waste treatment plants, or old building renovation.

At present, Hanoi has set up six taskforce groups specialized in speeding up the construction of public projects, for which the city considers higher disbursement rate a key priority in the remaining two months, especially large-scale projects with high spillover effects, or those financed by the ODA funds.

The municipal People’s Committee urged all localities to strictly comply with solutions for socio-economic development and address concerns of businesses, producers, and people during the recovery process.

Macroeconomic stability is also a source of concern, given the high inflationary pressure. The authorities called for better market management and ensuring supply-demand balance, especially prices of strategic commodities.