Hanoi drafts sustainable economic development plan in next 5 years

Chairman of the Hanoi’s People Committee Chu Ngoc Anh today [December 24] chaired a meeting to discuss the action plan to ensure the capital city’s rapid and sustainable economic development during the 2021-25 period.

Chairman of the Hanoi People's Committee Chu Ngoc Anh chairs the meeting.

The meeting is part of the overall efforts in realizing one of Hanoi’s 10 major action programs for the next five years, namely “Focusing on revising growth model, economic restructuring and global integration, with a view to improving productivity, efficiency and competitiveness of Hanoi’s economy towards rapid and sustainable development in 2021-25.”

Under the action program, Hanoi sets a gross regional domestic product (GRDP) growth target of 7.5–8% for the 2021-25 period, in which the services sector will make up 65-65.5%, industry and services 22.5-23% and agro-forestry-fishery 1.4-1.6%.

By 2025, the city targets to have gross regional domestic product (GRDP) per capita of VND190 million (US$8,300) and VND830 million ($36,000) by 2045.

In the next five years, digital economy is expected to contribute 30% to the city’s GRDP, while Hanoi will stay in the country’s top 8 in the provincial competitiveness index (CPI), up one place from its current standing and would be among the top 10 in the Provincial Governance and Public Administration Performance Index (PAPI).

Other key economic targets include export growth of 8-9%; number of tourists to expand by an average of 15% per year, resulting in 35-39 million tourists to Hanoi by 2025, of which 3.2 million are foreign tourists.

To realize these targets, Hanoi will continue to revise its economic growth model based on  science, technology and innovation.

Hanoi aims to mobilize resources to upgrade the infrastructure network and create breakthroughs in state governance in economic activities, at the same time further integrating into the global economy for greater productivity, competitiveness and economic efficiency.

Director of Hanoi's Department of Taxation Mai Son said during the 2016-20 period, the proportion of revenues from trading activities and crude oil in the total domestic revenue has been on the decline, accounting for 1.2% compared to 6.6% in the previous five years.

“Such rate is estimated to further decline to 0.4% in 2021-25”, stated Mr. Son, noting there has been a structural transformation in the city’s economy.

Director of the Hanoi Promotion Agency Nguyen Gia Phuong suggested the city should set up specific criteria in attracting high quality foreign direct investment (FDI), so that Hanoi will continue to stay atop the nation in terms of attracting foreign investment capital.

In 2020, Hanoi’s GRDP growth is estimated to reach 3.94% this year, which is lower than the year’s target of 7.5% but would be 1.5 times higher than the national average (2.5–3%).