Strong recovery with stable growth for Hanoi economy

The city's economy is showing a significant recovery, with industrial production, exports, investment, tourism, and consumer spending all experiencing notable growth, contributing positively to overall growth targets, according to Nguyen Ngoc Tu, Deputy Director of the Hanoi Department of Planning and Investment. 

Surge in investment and tourism

Ao dai enthusiasts parade through Hanoi's Old Quarter. Photo: Nguyen Hieu

In a recent report on the socio-economic situation in the first nine months of 2024, Tu highlighted that production and business activities remain stable, with strong interest from foreign investors.  

By the end of September, the city had attracted US$1.54 billion in foreign direct investment (FDI), including 197 new projects totaling over US$1.1 billion.  

In the first nine months of 2024, as many as 21,840 new businesses were established, with a total registered capital of nearly VND199 trillion (US$8 billion). The report said this brought the cumulative total of registered businesses to 397,000. 

Third-quarter export sales reached $5.6 billion, an increase of 28.8%. For the first nine months, exports totaled more than $14.4 billion, up 16.8% from last year's period. 

The consumer price index rose nearly 4.9% during the first quarters, compared to a 1.2% increase during the same period last year.

Meanwhile, social investment in the nine months reached VND351.8 trillion ($14.2 billion), up 9.7%, including VND143.9 trillion ($5.8 billion) in September, reflecting a 10.7% increase year-on-year.   

In addition, the total capital deposited in credit institutions hit VND5.6 trillion ($226 million), rising 5.1%, while the total outstanding loans reached VND4.1 trillion ($165.6 million), an upturn of 12.6%. 

The deputy director reported a notable increase in the city's tax collection that ensures a balanced budget. Between January and September, Hanoi’s total state budget revenue reached VND376.4 trillion ($15.2 billion), marking a 22.2% rise over the same period last year. 

During the period, Hanoi saw significant tourism growth, with the total number of visitors reaching nearly 4.6 million, an increase of 31.3%.  

In September, the city won three prestigious World Travel Awards: "Asia's Leading City Destination", "Asia's Leading Short Break Destination", and "Vietnam's Leading Cultural Destination." 

According to the report, the city actively prepared for the 70th anniversary of the capital's liberation (on October 10, 1054 - 2024) with a series of cultural programs including the "Hanoi Days in Ho Chi Minh City" one. 

Mentioning this, Tu said that numerous cultural and artistic activities are held at historical sites, attracting a large number of visitors.  

Accelerating public investment disbursement

Electronics manufacturing at Rhythm Precision Vietnam in Noi Bai Industrial Park, Hanoi. Photos: Pham Hung/The Hanoi Times

The Deputy Director of the Department of Planning and Investment said that in the fourth quarter, the city will prioritize the disbursement of public investment for both 2024 and the medium-term plan for 2021-2025 as it faces challenges caused by rising prices, overloaded traffic, and the aftermath of Typhoon Yagi. 

In light of these challenges, Tu emphasized that in the fourth quarter, the city will prioritize accelerating the disbursement of public investment for both 2024 and the medium-term plan for 2021-2025. 

Tu mentioned plans to develop infrastructure and digital transformation while expanding the digital ecosystem of banking services in various sectors. In addition, there will be a strong focus on the manufacture of ancillary industrial products and key industrial goods, as well as the promotion of Hanoi's One Commune One Product (OCOP) items.

Regarding the city’s vision, Tu mentioned the implementation of the amended Capital Law and the preparations of the Hanoi Master Plan for 2021-2030, with a vision for 2050.

Concerning social housing projects, the city will continue to invest in this housing segment and release a housing development plan for 2025 with a focus on resettlement and the implementation of clean water projects.

On this occasion, Tu said that Hanoi would finalize a plan to restore environmental quality and develop the four inner-city rivers of To Lich, Kim Nguu, Lu, and Set. 

Last but not least, it will require more efforts to administrative reforms and restructuring the city's administrative units in 2023-2025, he concluded.