Hà Nội's growth holds firm despite fuel price pressures

Hà Nội's growth holds firm despite fuel price pressures

Hà Nội’s economy expanded 7.87 per cent in the first quarter of 2026, one of the strongest growth rates in recent years, despite mounting pressures from rising global fuel prices and trade uncertainties.

Workers in a production shift at Toyota Boshokum, Hà Nội. — VNA/VNS Photo

The figures were announced at a press conference held by the municipal People’s Committee on April 6 to review the city’s socio-economic performance in the first quarter.

Speaking at the event, Đỗ Thu Hằng, deputy director of the Hà Nội Department of Finance, said the global environment remained volatile, particularly as the conflict in the Middle East since late February has disrupted maritime trade routes, pushed up energy prices and heightened inflation risks.

Despite these headwinds, Việt Nam’s economy has maintained a positive recovery momentum, supported by industrial production, exports and public investment, she said.

In Hà Nội, the decisive implementation of socio-economic development programmes from the start of the year helped sustain growth, with GRDP rising 7.87 per cent year-on-year in the first quarter.

However, soaring fuel prices have added significant pressures. In March 2026, petrol prices jumped over 28 per cent month-on-month, while diesel rose nearly 57 per cent. Compared with March 2025, petrol prices increased 21.4 per cent and diesel 59 per cent, driving up transport and production costs and weighing on consumption.

Industrial production remained resilient, with the industrial index of production (IIP) rising 8.5 per cent year-on-year, including 8.7 per cent growth in manufacturing and 6.4 per cent in electricity production and distribution.

Business activity also gained momentum. The city recorded 9,033 newly established enterprises, up 33.4 per cent, with registered capital totaling VNĐ168.5 trillion (about US$6.4 billion). Meanwhile, 5,147 businesses resumed operations, an increase of 36.1 per cent year-on-year, though dissolutions and temporary suspensions also rose.

Foreign direct investment (FDI) reached $479 million, down 66 per cent year-on-year. In contrast, total investment capital in the city rose 10 per cent to VNĐ102.3 trillion, while public investment from the local budget surged 47.4 per cent to nearly VNĐ21 trillion, the highest level nationwide.

Trade and services remained bright spots, Hằng said. Retail sales and consumer service revenue reached VNĐ252 trillion, up 11.2 per cent, while tourism rebounded strongly with over 2.4 million visitors, including 1.8 million international arrivals.

In the coming time, the city will prioritise major infrastructure projects, accelerate public investment disbursement and stimulate consumption, including piloting the night-time economy in Hoàn Kiếm and Tây Hồ.

Hà Nội will also shift towards selective investment attraction, targeting strategic investors in high-tech industries, supporting industries and research and development, while promoting digital transformation across public services and commerce.

Officials said the first quarter has laid an important foundation, but achieving double-digit growth will require faster public investment, stronger mobilisation of social resources and new momentum from science, technology, the digital economy, culture and tourism. 

Bizhub