Hanoi makes strides in economic recovery

Hanoi makes strides in economic recovery

The effective implementation of a government resolution on safe and flexible adaptation and effective control of the COVID-19 pandemic has generated significant economic recovery in Hanoi, Vietnam’s capital city.

Hanoi’s economy is recovering

Major balances ensured

According to a report by the Hanoi People’s Committee, key industries are gradually recovering and developing from the impact of the COVID-19 pandemic. Hanoi’s gross domestic product in the first quarter of 2022 increased by 5.83 percent, 16 percent higher than the country average (5.03 percent), three times higher than that of Ho Chi Minh City (1.88 percent), achieving the quarterly growth forecast (5.7-6.2 percent). These figures reflect the growth momentum in many industries and fields.

Many major balances have been ensured. The total state budget revenue of Hanoi in the first quarter of 2022 exceeded VND102.40 trillion, or 80.2 percent of the revenue estimate, representing a rise of 9.2 percent against the same period last year. Regarding investment capital disbursement, Hanoi disbursed more than VND4.11 trillion, reaching eight percent of the plan (up by 26.7 percent over the same period last year) as of March 31, 2022.

Notably, the business and investment environment has been improved. Total development capital in the first quarter of 2022 reached VND76.26 trillion, up by 7.8 percent, higher than that of Ho Chi Minh City (7.3 percent). There are 6,250 newly established enterprises with total registered capital of VND95 trillion, an increase of two percent in the number of enterprises; 4,500 enterprises resumed operations (up by two percent).

Truong Viet Dung, spokesperson of the Hanoi People’s Committee, said the city was achieving a remarkable recovery after two years of difficulties. “In the first four months of this year, Hanoi’s economy has recovered clearly, comprehensively, synchronously. Production and business showed many positive signs of recovery. The production indexes of most sectors increased sharply compared to the same period last year. Hanoi is effectively working on the economic recovery and development plan,” Dung said.

Public investment disbursement

Given these positive signs of economic recovery, Hanoi People’s Committee Chair Chu Ngoc Anh has asked city departments, sectors, and administrations to strive to reach the annual growth goal of 7-7.5 percent in 2022, while ensuring a balance between budget revenues and expenditures and controlling inflation below four percent.

Anh urged officials to accelerate economic development, focus on disbursing public investment and developing potential economic sectors, promoting key industries such as services, construction and industry, boosting imports and exports and carrying out the 2022 investment plan.

The Hanoi People’s Committee has also requested implementation of solutions to remove difficulties for overseas development assistance (ODA) projects, foreign-invested projects, and off-budget investment in order to stimulate investment. It has also instructed officials to ensure major balances in implementing tax exemptions and reductions and enhance the circulation of commodities.

Authorities need to focus on removing difficulties for businesses through tax exemptions and reductions and interest rate support for enterprises, cooperatives, and household businesses under the economic recovery and development program.

VietNam Economic News