Hanoi economic recovery keeps up with global recovery pace
Hanoi economic recovery keeps up with global recovery pace
In the first months of 2022, Hanoi City’s industrial production, trade and service activities have recorded positive recovery trends. Thanks to steadfast socio-economic recovery policies, and gradual opening of the city’s economy, Hanoi’s enterprises have kept up with the pace of global economic recovery.
According to the Hanoi Statistics Office, in the first two months of 2022, the industrial production index (IIP) was estimated to have increased by 4.6 percent over the same period last year. The processing and manufacturing industry increased by 4.8 percent; electricity production and distribution increased by 1.8 percent; water supply and garbage and wastewater treatment increased by 4.3 percent; while the mining industry decreased by 1.8 percent. The IIP of paper and paper products production increased by 49.7 percent; wood and wood products processing rose by 20.7 percent; electronic products, computers and optical products up by 11.9 percent; products from rubber and plastic increased by 11.1 percent; non-metallic mineral products up by 8.4 percent.
Export revenue in the first two months of 2022 was estimated at US$2.671 billion, up 30.9 percent compared to the same period last year, of which, revenue from the domestic economic sector reached US$1.413 billion, up 33.9 percent, and from the FDI sector US$1.258 million, up 27.7 percent.
|
Meanwhile, retail sales of consumer goods and services in January and February were estimated at VND109 trillion, up 9.9 percent over the same period last year. The total breaks down to retail goods sales of VND73.3 trillion, up 10.9 percent year on year, revenue from accommodation and food services reached VND9.8 trillion, an increase of 15.3 percent, travel service revenue reached VND898 billion, up 3.5 percent, and other service revenues reached VND25 trillion, an increase of 5.5 percent.
According to the statistics agency, since the beginning of February 2022 coincided with the week-long Lunar New Year holiday, commercial and service activities declined compared to January, when business activities, tourism, restaurants and hotels re-opened.
Sufficient labor
Following the New Year’s holiday, most industrial enterprises in Hanoi had mobilized sufficient labor. The number of industrial enterprise workers in late February was estimated to have increased by 1.2 percent over the previous month and by 0.3 percent over February 2021. Motivation was reported high to complete planned targets and catch up with the pace of economic recovery.
Nguyen Doan Thang, General Director of Rang Dong Light Source and Vacuum Flask Joint Stock Company, said that in the short term, the company will adopt online business models and a proactive export strategy to quickly adapt to market changes. To realize the goal of becoming a “billion-dollar” enterprise by 2030, with average income of US$2,000 per worker by 2025, the company will expand its development space and accelerate digital transformation.
Hanoi will also take various measures to increase export revenue this year by five percent compared to 2021. Specifically, the measures are designed to improve the competitiveness of businesses and manufacturers that adapt most effectively to new circumstances; continue to promote administrative reform, formulate mechanisms and policies to boost production and export; adopt monetary policy under the direction of local authorities; continue to connect labor supply and demand to meet manufacturers needs for exports, and increase investment attraction in infrastructure development and services for business and export activities.
Apart from flexible adaptation solutions such as promoting digital transformation, investing in automation and green production and enhancing supply capacity for industries to meet requirements of global production chains, authorities will seek to maintain macroeconomic stability and suitable interest rates and exchange rates for export promotion. Moreover, authorities are urged to provide information on economic support packages as soon as possible to help speedy business recovery as well as to reduce administrative procedures, especially export-related ones.
