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Hanoi's economy maintains robust growth in H1
Thanh Thanh 21:56, 2024/07/01
Hanoi is resolutely undertaking support measures for businesses and increasing the accountability of various levels of authorities, sectors and individual positions in fulfilling their assigned tasks.

Along with the rest of the country, Hanoi faced many challenges in the first half of this year, but the city still managed to achieve remarkable results, especially in economic development, according to the Hanoi Statistics Office.

 Garment exports produced at May 10 JSC. Photo: Thanh Hai/The Hanoi Times

Since the beginning of the year, Hanoi's leadership has been urging all levels of government, sectors, and localities to focus on solutions to remove difficulties for businesses and promote socio-economic development programs, according to Deputy Director of the Hanoi Statistics Office Vu Van Tan.

Thanks to these efforts, industrial production activities showed many positive signs in the second quarter of 2024, as orders continued to increase, he said.

During January-June, the industrial production index increased by 5%, with the processing and manufacturing industry up 4.1% and the product consumption index surging 13.1%.

Another highlight is over US$1.1 billion of foreign investment in the city, including over US$1 billion of 120 newly registered projects; US$55 million of capital increase in 78 projects; and US$74 million of capital contribution and share purchase by 104 foreign investors.

“Thus, Hanoi remains an attractive destination worthy of international capital flows,” Tan said.

According to the agency, exports are back on track and have grown significantly, with an export turnover of $8.9 billion, up 11% from the same period in 2023. Of this, the domestic economic sector exported $5.2 billion worth of goods, up 14.8%, while the foreign-invested sector recorded an export turnover of $3.7 billion, up 6.1%.

However, Hanoi still faces some constraints, including a lower GRDP growth rate than the national average, low public investment outlays, and delays in project implementation due to land acquisition problems. High land rental costs compared to nearby areas and distance from seaports also hinder investment attraction, the Deputy Director said.

"Hanoi is resolutely undertaking support measures for businesses and increasing the accountability of various levels of authorities, sectors, and individual positions in fulfilling their assigned tasks," Tan said.

Trinh Thi Ngan, chair of the HANOISME advisory board, says businesses need timely and effective government support at all times. For regulations and policies to have a real impact on business operations, they must be implemented on time.

"Administrative reforms combined with deferring, delaying, and reducing taxes and fees, as well as creating a fair mechanism and providing opportunities for businesses, are important conditions to promote development," she added.

Local experts said that the business landscape in Hanoi has become brighter, with the number of newly registered businesses and those resuming operations outnumbering those exiting the market. This is an encouraging sign, as it represents factors driving economic growth. However, the relevant authorities need to provide more effective and substantive support to businesses in order to foster sustainable development of the business community.

Associate Professor Dr. Dinh Trong Thinh: Stimulating domestic consumption in the second half of 2024

To drive GRDP growth in the remaining half of the year, Hanoi needs to implement various measures to boost domestic consumption, which is an important growth factor.

With the advantage of high population density and high-income residents, the city should intensify the organization of trade fairs, and promotional activities, and stimulate consumption through new approaches.

Public investment in Hanoi has made some progress, but not to the desired extent. Therefore, the city must continue to resolutely direct the acceleration of public investment implementation and disbursement, focusing on key projects and those allocated to the large capital plans for 2024.

In addition, trade promotion activities should be strengthened to help companies find export partners.

Vice Chairman of Hanoi Small and Medium Enterprises Association (HANOISME) Mac Quoc Anh: Helping businesses overcome difficulties

In the context of constant challenges, the city's GDP growth has demonstrated the great efforts of all levels of government, sectors, and the business community.

However, Hanoi's SMEs still face many difficulties, such as investment and construction permit procedures, increasingly fierce domestic and foreign competition, difficulties in accessing loans, and certain restrictions in procedures for granting land use certificates, and investment and construction permits related to natural resources and the environment.

The Association will continue to play a role in mobilizing support and assistance to SMEs, in particular by concretizing solutions and programs, especially the 2017 Law on Support for Small and Medium Enterprises, and intensifying dialogues with administrative bodies to resolve difficulties in tax, customs, and investment certification procedures.

TAG: Hanoi Vietnam news economy foreign investment
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