Hanoi economy posts strong performance in first two months

Hanoi's economy maintained a steady recovery path with positive results in various sectors, resulting in high budget revenues in the first two months of 2023.

Overview of the press conference. Photo: The Hanoi Times

Le Van Quan, deputy director of Hanoi's Department of Planning and Investment, made the remarks at a press conference on the city's socio-economic performance on March 9.

Progress in key sectors

In the first two months of the year, Hanoi's State budget revenue reached VND108.7 trillion ($4.6 billion), accounting for 30.8% of the estimated amount, while the local budget expenditure in the same period was VND11 trillion ($464.6 million), equivalent to 114.2% of the expenditure in the same period last year.

Quan noted that the city's export turnover in February was $1.24 billion, an increase of 17.2% compared to February 2022, while the cumulative export turnover in the first two months of 2023 was $2.3 billion, a decrease of 4.8% compared to the same period last year.

Meanwhile, the import value in February was US$3.1 billion, up 13.2% year-on-year, and the cumulative import turnover in the first two months of the year was US$5.7 billion, up 0.1% year-on-year.

Quan highlighted the strong recovery of the trade and services sector in the first few months, with total retail sales of consumer goods and services reaching VND59.4 trillion (US$2.5 billion) in February, up 16.8% year-on-year.

Cumulative total retail sales of consumer goods and services in the first two months of 2023 reached VND122.4 trillion (US$5.17 billion), up 12.3% year-on-year.

"A notable highlight is the strong recovery of the capital's tourism industry," Quan said. In February  2023, Hanoi welcomed 340,000 visitors, an impressive increase of more than 2.1 times compared to the same period last year. The number of international tourists with overnight stays reached 210,000, an astounding increase of 14.7 times, while domestic tourists increased by 39% to reach 130,000 arrivals.

In terms of the Consumer Price Index (CPI), a main gauge of inflation, there was a slight increase of 0.49% in February compared to January, and an increase of 2.41% over the same period in 2022.

While industrial production showed positive growth in February, the cumulative output for the first two months declined from the same period last year, Quan said.

The index of industrial production (IIP) in February 2023 increased by 9.4% compared to January 2023, and by 15.6% over the same period last year. Some key industries had a significant increase in production index compared to last year, such as food production and processing, beverage, tobacco, garment, and motorized vehicles.

According to Quan, the city is making efforts to enhance its business environment, promote enterprise development, and attract investment.

In February, there were 2,045 newly established companies with a registered capital of VND23.5 trillion ($991.7 million), which is a 48% increase in the number of enterprises and a 17% decrease in registered capital compared to the same period last year. In the first two months of the year, 3,691 new businesses were established with a registered capital of VND38.2 trillion ($1.62 billion), up 2% in the number of enterprises but a 39% decrease in the registered capital year on year.

Quan added the city currently has a total of 353,704 registered enterprises.

In February, Hanoi attracted $14.37 million in foreign direct investment (FDI), bringing the total for the first two months to $36.7 million. This included 39 new projects with a total investment capital of $10.9 million, 12 existing projects with additional means of $16.5 million, and capital contribution in 41 others with $9.3 million.

Key tasks ahead

Quan added that the city has outlined several key tasks to focus on by the end of the year. These include finding solutions to implement the socio-economic development plan for 2023 and contributing to the five-year plan for 2021-2025.

"It is important for Hanoi to continue to push for economic recovery and development while ensuring stability and key balances, controlling inflation, and promoting growth," Quan said.

For long-term development, the city will finalize the overall planning for 2021-2030 with a vision towards 2050 and make adjustments to the Hanoi Capital Construction Master Plan by 2030 with a vision towards 2050.

Another key task is to work with the Ministry of Justice and other relevant agencies to review the implementation of the Capital Law and its amendments, he said.

Planning work, infrastructure development, and urban and rural area development will also be a priority, Quan said.

In this regard, the city is expected to accelerate the construction investment project for Ring Road 4 - Hanoi Capital Region and promote the development of digital infrastructure, science and technology activities, innovation, creativity, and entrepreneurship.