Hanoi’s economy going strong

10:01 | 27/02/2018 Economy- Society

(VEN) - Hanoi’s 2017 gross regional domestic product (GRDP), retail sales and service revenues were 8.5, 11.3 and 11.2 percent higher than in 2016. Economists predict this trend in the capital’s economy will continue.

hanois economy going strong

Hanoi has set 7.3-7.8, 10.5-11 and 7.5-8 percent GRDP, investment capital and export value growth targets, respectively, for 2018.

Economist Vo Tri Thanh said Hanoi is determined to grow qualitatively, creating a platform for sustainable growth in the future rather than promoting short-term demand stimulus measures.

Many economists share Thanh’s point of view, saying Hanoi’s targets are feasible because the city has obtained inclusive achievements and jumped from the 24th to the 14th place in terms of the provincial competitiveness index (PCI), the highest ranking that the capital has reached so far. In Hanoi, almost all firms did their business registration online, while 98 percent of all enterprises made tax declarations online, and all businesses used electronic customs services. Last year, Hanoi approved investment decisions for 160 non-state projects totaling an estimated VND110 trillion in capital while attracting total registered foreign direct investment (FDI) capital of more than US$3.35 billion.

The achievements are attributed to the city leadership that has improved its performance and made breakthroughs in management. The achievements are also attributed to Hanoi’s determination and efficient efforts in business environment improvement, which have encouraged the private economy’s development.

Hanoi, which serves as a goods transshipment center in northern Vietnam, has the potential to develop high-tech industries, tourism, and transport and attract investment. Therefore, the capital’s targets are relatively feasible. However, to achieve a breakthrough, according to Hanoi People’s Committee Deputy Chairman, Nguyen Doan Toan, Hanoi should continue to improve its business environment, focus on solving problems, speed up industrial and trade infrastructure development, strengthen market management, and facilitate startup and innovation businesses.

Hanoi will continue to promote industry and trade development, and international economic integration, further restructure the industrial sector, attract investment in general and investment in high-tech and industrial parks in particular. It also plans to develop support and logistics industries, build additional trade centers, farm produce wholesale markets and industrial zones for small to medium-sized enterprises, and improve human resources quality and competitiveness to meet integration demands.

Hanoi is instructing authorities at different levels to fulfill plans and targets, especially those related to tax payments to the state budget, issuance of land use right certificates, and urban order and security.

Hanoi’s index of industrial production (IIP), and retail sales and service revenues in January 2018 are 14.7 percent and 16.9 percent higher than at the same time in 2017.

Thanh Tam