Hanoi’s economic growth hits 4-year high of 7.62% in 2019

Hanoi’s GRDP is estimated to attain a four-year high growth rate of 7.62% in 2019, exceeding the year’s target of 7.4 – 7.6%, while the city continues to hold the crown in foreign capital attraction nationwide, according to the municipal Statistics Office.

Data: Hanoi Statistics Office. Chart: Hai Yen.

Such achievements have been made thanks the authorities' strong efforts to carry out administrative reforms and improve the business environment, creating favorable conditions for enterprises to grow, said Dau Ngoc Hung, head of Hanoi’s Statistics Office at a press conference on December 27.

Hanoi’s nominal GRDP in 2019 stood at VND971.7 trillion (US$42.04 billion) and GRDP per capita of VND120.1 million (US$5,196), up 7% year-on-year and higher than the national GDP per capita of 4,791.

There has also been a positive shift in the GRDP structure, with a higher proportion in services, industry and construction sectors, and a lower contribution from the agro-forestry-fishery sector.

The sector of agriculture, forestry and fishery made up 1.99% of the local economy; the sector of industry and construction accounted for 22.69%; the service sector represented 64.02%; product taxes less subsidies on production accounted for 11.3%. The corresponding rates of last year were 2.14%, 22.26%, 63.94%, and 11.66%.

In 2019, the sector of industry and construction has expanded by 10.09% compared to 8.55% last year, contributing 2.5 percentage points to the overall growth; the sector of agriculture, forestry and fishery has decreased by 0.54%, reducing 0.1 percentage point to the overall growth; while the service sector climbed by 7.53%, contributing 5.46 percentage points.

Hanoi’s total goods retail sales and consumer services revenue in 2019 reached VND570.2 trillion (US$24.67 billion), up 12.1% year-on-year.

Additionally, the city’s exports hit US$16.7 billion, up 20.3% year-on-year, in which the domestic-invested sector made up 59.3% of total export turnover, or US$9.9 billion, up 32.9%, and foreign-invested sector reaped US$6.8 billion, accounting for 40.7%, up 5.6%.

Hanoi tops nationwide in FDI attraction

A highlight of Hanoi’s economy in 2019 was that it attracted US$8.45 billion in foreign direct investment (FDI) as of December 22, ranking top nationwide. Meanwhile, the disbursed amount was reported at US$6.5 billion,  or 74% of the total registered capital, the highest disbursement rate so far.

The majority of investment capital in Hanoi is under the form of capital contribution and share acquisition with US$6.33 billion. Investors committed to pour US$1.39 billion into 871 new projects and an additional US$738 million into 180 existing projects. 

As of present, Hanoi attracted a total of US$42.5 billion in FDI in 5,955 ongoing projects, while US$26.5 billion, or 62.3% of the total, has been disbursed, said a representative of the municipal Department of Planning and Investment at the press conference.

This year, the number of newly established enterprises is estimated at 27,900 with a combined registered capital of VND510.7 trillion (US$22.1 billion), up 11% in number and 30% in value year-on-year.

Average registered capital per newly-established enterprise reached VND18.3 billion (US$791,862), up 17% year-on-year, much higher than the national average of VND12.5 billion (US$540,889), indicating better health of local companies entering the market. 

Notably, 100% of business registrations are made online, helping save time and cost for enterprises.