Hanoi industrial production index up despite pandemic

13:00 | 27/09/2020 Industry

(VEN) - In order to achieve the city’s 2020 growth target of 4.5-5 percent, the Secretary of the Hanoi Party Committee Vuong Dinh Hue has asked the city People’s Committee to direct departments, branches and localities to ease the difficulties of doing business and review the production and business plans of each field.

hanoi industrial production index up despite pandemic

Industrial production growth

According to the Hanoi Department of Industry and Trade, in the first eight months of 2020, the industrial production index increased by 4.1 percent over the same period last year, with the processing and manufacturing industries increasing four percent, electricity production and distribution by 6.1 percent, water supply and waste and wastewater treatment by 5.6 percent. The mining industry decreased by 8.5 percent but due to its small proportion, it did not significantly affect the overall industrial growth.

Some processing and manufacturing industries increased their output compared to the same period last year. Specifically, the food processing industry grew 9.7 percent, production from prefabricated metal was up 10.1 percent, production of paper and paper products rose 11.2 percent, electronics and computer production increased by 19.2 percent. However, due to the impact of the Covid-19 pandemic, the demand for consumer goods in the country and in the world declined, affecting the textile industry (down 3.3 percent), clothing production (down 3.9 percent), leather and related products production (down 5.9 percent), beverage production (by 16.5 percent), and production of means of transport (by 12.2 percent).

According to the representative of the Garment 10 Corporation Joint Stock Company (GARCO 10), the company does not have any new orders beyond September. In addition, a recovery of supply in the context of reduced demand could cause the worldwide price of textile products to drop by 20 percent.

As the main import and export enterprise of the city, the Hanoi Trade Joint Stock Corporation (HAPRO) exports products to nearly 80 countries and territories around the world. However, due to the impact of the pandemic, Hapro’s export turnover in the first six months of 2020 only reached US$17.21 million, 48.04 percent of the figure of the corresponding 2019 period. In addition, the company also had to cancel participation in large and specialized trade fairs held in 2020, which play an important role in promoting the brand, and finding partners and new customers.

In the past eight months, tax revenues increased by 1.6 percent over the same period last year. Allowing for the tax and land use fee payments in the first eight months of the year, and the extended reporting deadlines, the total accumulated revenue for the period topped VND147 trillion, reaching 56.5 percent of the estimate.

The city’s disbursement of public investment has only reached 45.41 percent, affecting production and business activities, job creation, economic growth as well as the city’s state budget revenue.

Taking advantage of opportunities

Along with the whole country, the capital has also implemented measures to restore and develop the economy to achieve a growth rate 1.3 times higher than the national average and completing disbursement of public investment and state budget revenues.

The city is also determined to reform the administration in order to create favorable conditions for businesses and investors, continue to support businesses and trading households in reducing the impact of Covid-19, and increase revenue sources, but also promote disbursement of public investment. So far, the city has approved 122 out of 124 projects for 2020, of which 76 have been started, and 25 out of 30 districts and towns committed to disbursing public investment capital.

Hanoi’s localities have shared difficulties in disbursing public investment capital, yielding positive results. The city’s GRDP in the past eight grew an estimated 3.49 percent, 1.92 times higher than the national average, Hue added. To achieve the economic growth target of 4.5-5 percent, Hue suggested that departments, branches and localities solve difficulties for enterprises, review the business and production plans of each field with specific scenarios for the fourth quarter and the whole year, and strive to reach the highest goal.

Hue has also urged the reduction of recurrent expenditures, and has assigned the city to set a budget framework of VND260.4 trillion in order to ensure resources for social security and development investment. The city People’s Committee has reviewed revenues from state capital withdrawal from state-owned enterprises (SOEs), and other revenues compared to the expenditures of the central enterprises located in the area.

For the disbursement of public investment capital, Hue has assigned districts and wards to resolutely disburse all allocated public investment capital, including budget transfers from the previous year, and increase decentralization of investment decisions.

In order to carry out the socioeconomic development tasks from now to the end of 2020, Hue requested the city People’s Committee to set up five inspection and supervision teams to list problems and difficulties of districts, towns, project management boards, and report progress to the Hanoi Party Committee on the 10th and 20th of every month.

Along with the whole country, the capital has drastically implemented measures to restore and develop the economy setting a growth rate goal 1.3 times higher than the national average by striving to complete public investment disbursement and state budget revenue tasks.

Nguyen Hanh