Hanoi enters recovery phase, setting goal of average 7 percent growth

06:00 | 07/11/2021 Society

(VEN) - The forth outbreak of the Covid-19 pandemic has been controlled in Hanoi and many other provinces and cities nationwide, allowing the capital to enter a new period of economic recovery and development. The city issued Resolution 05-NQ/TU on socioeconomic development and public investment in 2021-2025, which introduces two growth scenarios – one is a GRDP growth of about 7.5 percent and the other is a GRDP growth of 6.5-7 percent.

Continually growing

A short time after its liberation day (October 10, 1954), Hanoi approved a plan to restore industry and trade, and carried out a land reform a year later. During the long resistance war against the Americans, Hanoi became a major economic center of the North, supporting the front line with the motto “No lack of rice and soldiers”. Since the victory in the spring of 1975, Hanoi has become a leading economic, cultural and social development center. The capital's economy has been growing well and both the material and spiritual lives of its residents have improved.

hanoi enters recovery phase setting goal of average 7 percent growth
Hanoi has set a target of becoming an industrialized and modernized city by 2025

In 2008, Hanoi’s area was officially expanded to include the neighboring province of Ha Tay, Me Linh District of Vinh Phuc Province and four communes of Hoa Binh Province’s Luong Son District. The capital's economy continued to grow at a good rate. In 2015-2020, although it accounted respectively for only 1 and 8.1 percent of Vietnam's area and population, Hanoi contributed 16.46 and 19.05 percent to the country’s gross regional domestic product (GRDP) and state budget revenue, and the city’s GRDP grew an average of 7.23 percent per year. The capital's economic structure was transformed in the right direction. Hanoi recorded outstanding economic achievements that greatly contributed to the country’s development.

Economic recovery

The Covid-19 pandemic severely affected and slowed down the capital’s economy, and difficulties and challenges piled up in 2021 due to the appearance of the dangerous Delta mutation outbreak. GRDP in the third quarter of 2021 decreased 7.02 percent compared to the same period in 2020, leading to a growth of only 1.28 percent in the first nine months of 2021. The worst affected sectors included transportation, trade, services, hotel, and tourism. The public investment disbursement rate in 2021 and 2020 is lower than the previous year’s.

hanoi enters recovery phase setting goal of average 7 percent growth
Hanoi is determined to realize its economic recovery plans

Thanks to its efforts in removing difficulties and maintaining production chains, Hanoi still achieved some encouraging results. Specifically, the city reached an estimated budget revenue of VND176.737 trillion in the first nine months of 2021, reaching 75 percent of the target set by the government and 70.3 percent of the city's target, and up 5.4 percent from the same period last year. Foreign trade hit almost US$1.3 billion in September, up 1.5 percent from August and 2.8 percent from last September. The agriculture, forestry and fishery sector in the first nine months of 2021 increased three percent over the same period in 2020, while the service sector grew 0.85 percent, and the consumer price index (CPI) was well controlled and grew 1.54 percent in the first nine months of 2021.

The fourth outbreak of the pandemic has been basically controlled in Hanoi and many other provinces and cities nationwide, allowing the capital to enter a new period of economic recovery and development. The city issued Resolution 05-NQ/TU on socioeconomic development and public investment in 2021-2025, which introduces two growth scenarios – one is a GRDP growth of about 7.5 percent and the other is a GRDP growth of 6.5-7 percent.

The chair of the Hanoi People's Committee Chu Ngoc Anh told sectors and authorities at all levels in the city to endeavor to reach targets set out in Resolution 05-NQ/TU, continue drastic measures to control the pandemic, and recover socioeconomic development. Efforts need to be made to fulfill the economic growth targets for the fourth quarter and the whole year of 2021, paving the way for promoting growth in 2022 and the following years, Anh said.

Hanoi has set a target of becoming an industrialized and modernized city by 2025, and an important driving force of socioeconomic development in the Northern Key Economic Zone in particular and Vietnam as a whole.

Bao Thoa