Jul 03, 2019 / 14:41

Hanoi economic growth maintains upward trend in H1

The Hanoitimes - Hanoi attracted the largest portion of FDI nationwide during the six-month period, posting US$5.3 billion, accumulating a total of US$41.2 billion in registered capital so far.

​In the first six months of 2019, Hanoi’s gross regional domestic product (GRDP) expanded 7.21%, higher than the previous growth of 7.15% recorded in the same period last year, according to the municipal Statistics Office’s report.  
Illustrative photo.
Illustrative photo.
Upon breaking down, the agriculture, forestry and fishery sector has increased by 1.15% year-on-year, lower than the growth rate of 3.29% recorded in the first half of last year, due to the impact of African swine fever.  

Additionally, the sector of industry and construction has risen by 8.38%, higher than an expansion rate of 7.88% a year earlier; and the service sector up 6.66%, contributing 4.69 percentage points.

Notably, Hanoi attracted the largest portion of FDI nationwide during the period, posting US$5.3 billion, accumulating a total of US$41.2 billion in registered capital so far, of which US$20.5 billion has been disbursed or 49.7% of the total.

The industry and construction sector continued to attract substantial attention with investment capital contributing to 37.2% of total FDI approvals.

Both real estate and trade-services were the second most heavily invested sectors, with 31.2% of total registered capital, followed by forestry – fishery - agriculture with 0.2%.
The data shows that Japan has been the top investor in Hanoi to date with US$10.24 billion, followed by Singapore with US$6.6 billion, while the third place belongs to South Korea with US$5.52 billion.

Total retail sales of consumer goods and services grew by 10.9% in the January – June period to VND269.8 trillion (US$11.6 billion), including VND46.7 trillion (US$2 billion) from the state sector, accounting for 17.3% of the total and up 6.2% year-on-year, private sector with VND208.1 trillion (US$8.95 billion), or 77.1% of the total and up 12.6%, and the foreign-invested sector with VND15 trillion (US$645.2 million), equivalent to 5.6% and up 3.6%. 

In the first half of 2019, Hanoi posted export revenue at US$7.2 billion, up 5.4% year-on-year, while importing goods worth US$15.75 billion, up 4.6%, resulting in a trade deficit of US$8.55 billion. 

During the period, the city's state budget revenue reached VND68.1 trillion (US$2.92 billion), equivalent to 28.6% of the year's estimate and up 30.3% year-on-year. 

The consumer price index (CPI) expanded 0.33% month-on-month in June, 2.22% against last December and 3.87% year-on-year. Overall, Hanoi’s CPI in the first six months averaged 4.07% year-on-year. 

Hanoi posted budget revenue of VND132.1 trillion (US$5.68 billion) during the six-month period, equivalent to 50.2% of the estimate and up 12.8% year-on-year. Of the total, revenue from taxes and fees amounted to VND122.4 trillion (US$5.26 billion), up 13.6% and trade turnover reached VND8 trillion (US$344 million), up 0.3%. 

Meanwhile, the city’s budget spending stood at VND33.8 trillion (US$1.45 billion) or 33.5% of the estimate and up 9.1% year-on-year, including VND14.5 trillion (US$623.48 million) of capital investment, equivalent to 32.2% of the estimate and recurrent expenditure of VND19.3 trillion (US$829.88 million), or 40.7% of the estimate. 

Hanoi targets GRDP growth rate of 7.5% in 2019 and 2020, leading to the GRDP growth in the 2016 – 2020 period of 7.33% - 7.41%, which is in line with the city’s five-year development plan.