Hà Nội’s economy accelerates on solid ground, improved business climate

Hà Nội’s economy accelerates on solid ground, improved business climate

Hà Nội’s economy continued to accelerate in the first 10 months of this year with major indicators surpassing targets, indicating improving business environment and providing a solid foundation for further growth in 2026, according to the city’s latest updates.

International tourists in downtown Hà Nội. The capital city's economic expansion is driven by rising budget revenue, robust investment, production, trade and tourism. — VNA/VNS Photo Thanh Tùng

The expansion has been driven by rising budget revenue and strong investment, production, trade and tourism.

Statistics showed that total State budget revenue reached VNĐ564.2 trillion (US$22 billion), 9.8 per cent higher than the annual plan.

Public investment disbursement from the local budget reached VNĐ69.1 trillion, up 29.4 per cent year-on-year, while foreign direct investment (FDI) rose 2.4 times to $3.9 billion.

In October, construction on a number of key projects began, underscoring the capital’s determination to improve its urban, transport and cultural infrastructure.

Major projects launched include the Cổ Linh underpass in Long Biên Ward, worth VNĐ748 billion, the Ngọc Trai Theatre and a cultural and arts park in Tây Hồ Ward, worth VNĐ12.76 trillion, the Trần Hưng Đạo Bridge worth VNĐ7.5 trillion, the Thăng Long – Trần Hưng Đạo section of Metro Line No 2 worth VNĐ35.5 trillion and Hà Nội Kidney Hospital 2 worth VNĐ749 billion.

International tourists in downtown Hà Nội. The capital city's economic expansion is driven by rising budget revenue, robust investment, production, trade and tourism. — VNA/VNS Photo Thanh Tùng

Construction of major infrastructure works is also being accelerated to ensure progress and quality, such as Belt Road No 4, the Hoàng Cầu – Voi Phục road section, the Ba La – Xuân Mai section of National Highway No 6, Thăng Long Expressway and the Yên Xá wastewater treatment system.

The capital city also attracted 342 new FDI projects in the period worth a total of $316.7 million, together with 120 existing projects increasing capital by a total of $3.2 billion. Notably, the Yên Sở Park expansion project of Malaysia’s property developer Gamuda Land is a highlight, with an additional capital of $1.12 billion.

Industrial production is on track to recovery with the index of industrial production (IPP) rising by 6.9 per cent. The manufacturing and processing industry rose by 7 per cent. Strong gains were seen in sectors such as motor vehicle production (up 17.9 per cent), non-metallic minerals (up 14.2 per cent), footwear (up 11.3 per cent), electronics and computers (up 10.4 per cent) and metals (up 9.7 per cent).

Retail and service revenues rose by 12.7 per cent to VNĐ789.1 trillion, reflecting rising consumer confidence and the recovery of services after the COVID-19 pandemic.

Specifically, retail sales totalled VNĐ493.9 trillion, accommodation and catering services VNĐ113.2 trillion (up 18.5 per cent) and tourism VNĐ29.7 billion (up 26.9 per cent).

Tourism continues to perform strongly. The capital welcomed 6.29 million visitors in the first 10 months of this year, up 22.9 per cent year-on-year, including 4.3 million international arrivals.

Hà Nội has recently been named Asia’s Leading Urban Tourism Destination, Asia’s Leading City Break Destination and received the Sustainable Tourism Award, reaffirming its regional tourism appeal.

According to the municipal Department of Finance’s report, total budget revenue climbed 35.8 per cent to reach VNĐ564.2 trillion, 9.8 per cent higher than the plan for the full year.

Domestic collection rose by 10.2 per cent to VNĐ531.4 trillion, while revenue from imports and exports increased by 11.4 per cent to VNĐ30.4 trillion and crude oil VNĐ2.1 trillion.

Revenue from non-State enterprises rose by 43 per cent, personal income tax by 26.9 per cent and land use fees by 2.7 times.

Local budget spending rose 40.2 per cent to VNĐ105.2 trillion, mainly for development investment, education, healthcare and social welfare.

Outstanding loans totalled VNĐ5.5 quadrillion in the capital city, up 22.76 per cent. The ratio of non-performing loans stands at 1.59 per cent, reflecting under-control credit quality.

There were 27,800 new firms established in the capital city in January to October, up 11.1 per cent, with a total registered capital of VNĐ337.9 trillion, up 38 per cent. About 8,800 firms resumed operation in the period, up 4.6 per cent, while nearly 22,000 registered to temporarily halt operation or be dissolved.

Hastened effort

International tourists in downtown Hà Nội. The capital city's economic expansion is driven by rising budget revenue, robust investment, production, trade and tourism. — VNA/VNS Photo Thanh Tùng

Hà Nội is striving to achieve an economic growth rate of 8-8.5 per cent in 2025 to create a solid foundation for double-digit growth in the next five-year period.

Official statistics show that the city’s gross regional domestic product (GRDP) expanded 7.92 per cent in the first nine months of this year.

Chairman of Hà Nội People’s Committee Trần Sỹ Thanh has urged efforts to accelerate the disbursement of public investment in the remaining months of this year to fulfil the target and create drivers for growth in the next period.

In addition, it is necessary to strengthen reforms and improve the business climate together with speeding up digital transformation.

The capital city also needs to focus on removing bottlenecks for enterprises through incentives in credit, tax, land use fees and trade promotion.

To promote sustainable economic growth, Hà Nội is also improving its institutional framework and policies, enhancing law enforcement efficiency and implementing the Politburo’s Resolutions No 57 on science and technology, innovation and digital transformation, No 59 on international integration in the new context, No 66 on the reform of law-making and enforcement processes and No 68 on private sector development. 

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