Hanoi’s economy posts solid growth
Hanoi’s economy posts solid growth
Hanoi’s economic growth in the first eight months of 2022 reflected positive economic recovery, enhancing prospects of fulfilling its yearly target.
Attractiveness to foreign investors
According to the Hanoi People’s Committee, the estimated export turnover of goods in the first eight months of the year increased by 32.4 percent to US$11.121 million, while the index of industrial production (IIP) rose by 8.3 percent. Total retail sales of consumer goods and services grew by 29 percent to VND451,339 billion.
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August saw 24 licensed foreign direct investment (FDI) projects with a total registered capital of US$10.75 million. In the first eight months of 2022, Hanoi city attracted a total of US$992.4 million in FDI. This included 226 new projects worth US$141.3 million, 122 ongoing projects with capital increases totaling US$374.6 million, and capital contributions totaling US$476.4 million.
Also in August, Hanoi saw the establishment of 2,527 new enterprises with VND25,257 billion in registered capital. In the first eight months, the city granted business registration certificates to 20,023 enterprises with total capital of VND226,037 billion, up 22 percent in number of enterprises and two percent in registered capital compared with the same period last year.
The economic recovery helped Hanoi ensure budget revenue targets. In the first eight months, total budget revenue reached VND223,132 billion, equivalent to 71.6 percent of the yearly plan and up 10.5 percent over the same period last year, while total budget expenditure was VND43,129 billion, equivalent to 40.3 percent of the yearly plan and up 10.1 percent compared to the same period in 2021.
Speed to the finish line
In the final months of 2022, the city’s main task is to drastically implement measures to speed up the disbursement of investment projects, namely the Ring Road 4 project. This includes easing barriers for Overseas Development Assistance (ODA), FDI and off-budget investment projects. At the same time, Hanoi needs to accelerate the construction of two inland container depots (ICDs) and the Aeon Mall Hoang Mai parking lot, and identify the location and boundary of two logistics centers .
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The city continues creating favorable conditions for workers and addressing priority subjects such as lower interest rates and rental assistance.
Hanoi is also implementing the new government’s policies on deferral of taxes and fees. Furthermore, it is trying to control inflation, ensure the circulation of goods and regulate the price index below four percent.
In the 2021-2030 period, with a vision to 2050, Hanoi should pay greate attention to urban development, including old apartment planning and finalizing plans for the Phu Xuyen satellite town (zone 1, zone 2, zone 3), Xuan Mai urban subdivision (zones 1,2,3), and more.
Additionally, the city ought to review and remove difficulties in real estate procedures such as and allocations, leases, and use right auctions, determination, and financial obligations. The Seraphin waste-to-energy power plant and Yen Xa wastewater treatment plant should be considered a high priority as well.
The Hanoi government should implement more drastic measures to raise the Public Administration Reform (PAR) index and the Satisfaction Index of Public Administration Services (SIPAS). The city also needs to outline socioeconomic development and public investment plans for 2023.
