Hanoi’s gross regional domestic product (GRDP) growth is estimated to reach 3.98% in 2020, the slowest pace in many years due to severe impacts of the Covid-19 pandemic but remains high compared to other cities/provinces.

Hanoi's economy has been on a steady recovery trend since the second quarter. Photo: Pham Hung.

Director of the municipal Statistics Office Dau Ngoc Hung said at a recent press conference, adding the result showcased effective measures of the local government against the pandemic and efforts to support economic growth in the city.

A GRDP growth of 5.77% in the fourth quarter, while lower than the rate of same period of last year of 8.35%, showed the steady recovery trend of the local economy, added Mr. Hung.

In the first quarter, Hanoi’s GRDP growth stood at 4.13%, followed by 1.76% in the second quarter, and 3.95% in the third.

Hanoi’s nominal GRDP stands at VND1,016 trillion (US$44.13 billion), resulting in a GRDP per capita of VND122.7 million (US$5,285), up 2.34% year-on-year.

About the structure of the local economy in 2020, the sector of agriculture, forestry and fishery made up 2.24%; the sector of industry and construction accounted for 23.67%; the service sector represented 62.79%; and product taxes less subsidies on production accounted for 11.3%.

The sector of agriculture, forestry and fishery is estimated to expand by a record high of 4.2% year-on-year, contributing 0.09 percentage points to the overall GRDP growth thanks to the successful containment of the African Swine Fever and efforts for repopulation of pig herds to 1.36 million heads, up 26.2% year-on-year.

The sector of industry and construction this year grows by 6.39% year-on-year, contributing to 1.43 percentage points to the overall growth. There has been a positive shift in the structure of the city’s industry sector with a focus on higher added value production, including automation, robot, nano, plasma, laser, bio-tech.

Meanwhile, the services, one of the hardest hit sectors by the Covid-19 pandemic, is set to expand by 3.29%, much lower than the growth rate of 7.59% in the same period last year and contributing to 2.1 percentage points to the overall growth.

Wholesale and retail sales are the highlight of the services sector with a growth rate of 8.84% and contribute 0.81 percentage points to the city’s GRDP growth.