Hanoi’s gross regional domestic product (GRDP) is estimated to expand by 9.69%  in the first nine months of this year, the highest growth rate in recent years, according to the municipal Department of Statistics.

A corner of Hanoi. File photo

“Such positive growth remains an encouraging result amid complicated global situation, including the Russia-Ukraine conflict, rising prices of essential commodities, and the energy crisis in Europe,” noted the Hanoi Department of Statistics.

Amid a dim international economic outlook, the Government has timely conducted supporting measures to stabilize energy and food prices, along with a flexible and safe approach to keep the Covid-19 pandemic under control, it added.

According to the report from the statistics authority, the city’s GRDP in the third quarter expanded by 15.71% year-on-year.

Upon breaking down, the agro-forestry-fishery sector expanded by 1.19%, contributing 0.02 percentage points to the overall growth; the construction and industry sectors by 11.05%, or 2.66 percentage points, and the services by 19.34%, or 12.19 percentage points.

The report highlighted the strong recovery of the service sector as a bright spot in Hanoi’s economic performance during the period. The high growth is seen in almost all sub-sectors of tourism, wholesale and retail, transportation, real estate transactions, hospitality, and catering services.

Industrial production, seen as a driving force for Hanoi’s economic growth, expanded by 8.6% during the nine months, more than double the growth rate from the same period last year.

The higher production rate is thanks to businesses expanding operations after two years of Covid-19, including a rise in beverage production by 18%; paper (17%), wood and wooden products (16.6%), and transport vehicles (13.1%).

In the nine months, Hanoi’s services expanded by 11.51% year-on-year, or 7.45 percentage points to the overall growth. The construction and industry sectors grew by 7.83% or 1.67 percentage points; agro-forestry-fishery by 2.05%, or 0.05 percentage points.

The city’s trade performance has also been positive, with exports rising by nearly 20% during the January-September period to $13.1 billion.

The report revealed the number of tourists coming to Hanoi at 1.7 million in nine months, a 2.3-fold increase year-on-year, helping the city realize the annual target for this year.

Improving business sentiment

Hanoi attracted over $1 billion in foreign direct investment (FDI) during the nine months, up 18% yearly. Of the total, the city issued licenses for 262 new projects worth $183 million, up 6.5% in the number of projects and 12.5% in the capital.

The city witnessed a 93% increase in business registration with 2203 newly founded enterprises in September with a registered capital of VND18.7 trillion ($782 million), representing a total of nearly 22,000 new businesses in nine months or a 25% increase year-on-year.

Commercial banks in the city continue to support businesses and customers affected by the pandemic, focusing on rescheduling debt payments and waiving and freezing interest rates.

A survey on the sentiment of manufacturing businesses in the third quarter showed that 36.5% of respondents saw improvements in their performance compared to the previous one and expected further production expansion to meet the rising demand for domestic consumption during the year-end period.

In addition, nearly 44% of businesses held optimistic views for the fourth quarter, 45% suggested stability, and only 11.2% foresaw worse situations.

Pushing for higher disbursement of public funds

In the third quarter, Hanoi continued to push for a higher disbursement of public funds and mobilized private sources for infrastructure development.

Total capital mobilization during the period expanded by 17.7% to VND123.5 trillion ($5.16 billion) against the second quarter and 47.6% year-on-year. This resulted in a total of VND304.8 trillion ($12.7 billion) in the nine-month period, up 22.1%.

In the coming time, the authorities would focus on accelerating the construction of major infrastructure projects, including the pilot metro line section Nhon – Hanoi station with a length of 12.5 kilometers and an investment capital of VND33 trillion ($1.38 billion). To date, the line is 75% complete and is on track to be inaugurated by late 2022.

The Le Van Luong – Ring road 3 tunnel: one of the six major transport projects in Hanoi. The work, with an investment capital of VND700 billion ($29.2 million) and a length of 475 meters, could be completed on the occasion of Hanoi’s liberation day on October 10, 2022.

The elevated Ring road 2 project section Vinh Tuy bridge – Nga Tu So. The project started construction in April 2018 with an investment capital of VND9.4 trillion ($393 million) and a length of 5 kilometers. At present, contractors are mobilizing personnel and equipment to ensure its completion on schedule by late 2022.

The Vinh Tuy bridge phase 2 (VND2.5 trillion or $105 million) with a length of 3.5 kilometers, the starting point at the junction of Nguyen Khoai and Minh Khai street, and the endpoint at the junction of Long Bien – Thach Ban and Co Linh street. The project could be completed by September 2023 and put into operation on Hanoi’s liberation day on October 10, 2023.

Hanoi Children Palace: started construction in March 2021 with an investment capital of VND1.37 trillion ($57.3 million). The project, located in the Cau Giay new urban area, is currently under the first phase of construction and is set to complete in 2024.