Hanoi strives to speed up investment disbursement to fuel recovery

Strong recovery

According to data from the Hanoi Statistics Office, the index of industrial production (IIP) in the first five months of 2022 grew an estimated 6.4 percent over the same period last year.

Realized investment capital from the state budget managed by localities during the reviewed period was estimated at VND15.5 trillion, up 2.3 percent over the same period last year and reaching 30.5 percent of the year plan.

Hanoi’s industrial production increased in the first five months of 2022

In the first five months, the city attracted US$703 million from foreign-invested enterprises, up 35.4 percent year on year. Of these, the city granted certificates to 129 newly registered projects with capital of US$96 million; 69 other projects added investment capital of US$216 million; while 146 foreign investors contributed capital and bought shares worth US$391 million.

Export turnover of commodities during this period was estimated at US$6.908 billion, up 18.8 percent over the same period last year, and the import turnover also increased by 20.2 percent year on year.

The city has provided support funding of over VND2.530 trillion to more than 2,630 million workers, employers and business households to ease difficulties due to COVID-19 impacts. The municipal social insurance agency has paid an unemployment insurance package worth over VND4.85 billion for over 3,239 million employees.

Despite the positive results, leaders of the Hanoi City People's Committee point to the fact that the disbursement rate of public investment capital, at only 16.4 percent of the plan, was lower than the national average of 20.45 percent. The relatively high increase in the consumer price index (CPI) puts great pressure on the 2022 targets. In addition, the effects of emerging challenges, such as inflation, gasoline prices, input prices of raw materials, and real estate and stock market fluctuations are still unclear.

Mobilizing resources

To accelerate economic development and public investment disbursement, the city People's Committee is urging different sectors and localities to take advantage of this post-COVID-19 period to focus on mobilizing resources to accelerate economic development in the third quarter of 2022 in order to ensure its target by the fourth quarter of this year.

Speeding up site clearance progress

It also stressed the development of important economic sectors, such as services, tourism, industry and construction, of plans for economic recovery and of easing difficulties for foreign-invested projects in order to unfreeze resources and stimulate investment demand.

Regarding the 2022 public investment disbursement plan, the People's Committee gave specific directions to city localities to address tasks including site clearance and unit prices in construction. It assigned the Department of Home Affairs to raise the responsibility of those in charge and strictly handle slow disbursement resulting from lack of efforts. In addition, units and localities will also publicize monthly and quarterly investment disbursement results.

The Committee assigned the city’s Department of Planning and Investment and other units to perfect the software for management, monitoring public investment disbursement to achieve consistency throughout the project and to regularly monitor, update and publicize the disbursement progress according to regulations.