Hanoi acts to support economic growth

Hanoi is taking specific steps to support economic growth as the impacts of the Covid-19 epidemic are already being felt, said the municipal People’s Committee in a press announcement on March 2.

Illustrative photo.

In the announcement, the Hanoi People’s Committee requested its subordinate agencies to diversify investment promotion activities from the third quarter of 2020 to stimulate a stronger inflow of foreign direct investments (FDI).

Each agency and unit are tasked with implementing plans to stimulate economic growth via  cuisine festivals, trade fairs, business-matching events, among others, to attract tourists and help the tourism sector to recover.

The move is expected to stimulate domestic consumption and spur economic growth in the final six months this year, said the Committee.

Specifically, the municipal Department of Planning and Investment is responsible for assessing the impacts of Covid-19 epidemic to the city’s economic performance; focuses on addressing concern of the business community and speeding up the approval process for public investment, domestic and foreign invested projects.

The local government assigned the Department of Finance to provide financial incentives to stimulate domestic consumption and simplify administrative procedures for regular spending.

Additionally, the Department of Industry and Trade is requested to ensure the construction progress of industrial parks goes as scheduled, while project management units in Hanoi must speed up the disbursement of public investment funds.

The Department of Tourism is tasked to continue preparing for tourism promotion activities in 2020 and searching for new markets; cooperating with tour operators to provide new tourism products; setting up plans to organize events in the framework of Vietnam’s 2020 ASEAN Chairmanship and the 41st General Assembly of ASEAN Inter-Parliamentary Assembly (AIPA 41).

Nguyen Manh Quyen, director of the municipal Department of Planning and Investment, said in a meeting on February 28 tourism is the hardest hit sector in Hanoi by the Covid-19 epidemic as arrivals from China, South Korea and Japan, which account for nearly 40% of total tourists coming to the capital, have fallen.

Quyen added the industrial production also suffers direct impact, adding these three East Asian markets make up 50% of Hanoi's exports and 30% imports.

To mitigate impacts from the Covid-19 epidemic, the authority would continue with administrative reform, particularly removal and simplification of business conditions, Quyen said.

Hanoi gives strong priority to addressing businesses’ concerns while mobilizing resources to support production, consumption and tourism, Quyen stressed.