As Hanoi’s exports suffered a contraction of 18.1% year-on-year in the first quarter, compared to the nation’s export growth of 7.5% during the period, the city should drastically restructure economic sectors affected by the Covid-19 pandemic, said Minister of Industry and Trade Tran Tuan Anh.

Illustrative photo.

Statistics from the municipal Statistics Office revealed Hanoi’s farm produce exports declined 27.9% year-on-year during the three-month period; shipments of electronic products fell 32.1% while those of steel dropped 19.5% and of transportation vehicles were down 30.1%, among others.

To realize the role as one of Vietnam’s economic and logistics hubs, Hanoi should step up investment in trade infrastructure development, particularly the distribution and retail network, Anh said at a meeting with Hanoi’s leaders on April 20.

Anh added the city should pay more attention to incentive policies to attract private investment in the distribution and trade system; allocate more land funds for trade infrastructure projects; and take measures to promote e-commerce.

The Ministry of Industry and Trade (MoIT) is committed to supporting Hanoi during the economic recovery process, stressed Anh.

Meanwhile, Deputy Prime Minister Truong Hoa Binh suggested Hanoi prioritize improving the business environment and administrative reform, while continuing to expand the coverage of online public services for the benefits of the people and enterprises.

Binh requested Hanoi to propose measures addressing any legal bottlenecks to investment procedures, so that the city could prepare for a new wave of foreign investment inflows once the economy starts to recover.

According to Binh, Hanoi, along with Ho Chi Minh City, should lead Vietnam’s efforts in promoting digital economy and IT development.

According to a report from Hanoi’s authorities, as the Covid-19 impacts were limited in the first two months, the industrial–construction sectors and services were growth driving forces in Q1, growing 5.46% and 3.2% year-on-year, respectively.

Hanoi plans to speed up development of sectors with high growth potential in the current pandemic situation such as agriculture and medical equipment production, e-commerce, e-payment, and online learning, among others, while the agricultural sector would receive due investment for growth.

In the January-March period, the number of enterprises suspending operations in Hanoi surged 36% year-on-year to 4,240 while over 13,215 people filed unemployment insurance claim, up 22.2% year-on-year.

In the most optimistic growth scenario, Hanoi sticks to the GRDP growth target of 7.5% for 2020.