Hanoi economy remains resilient in Jan amid nCoV outbreak

Hanoi’s economy continued strong momentum into January despite the outbreak of the new coronavirus (nCoV), according to the municipal People’s Committee.

Overview of the meeting.

Positive performance

The driving forces for the economy in January are high revenue from the private sector and growing number of foreign invested enterprises, thanks to strong measures by the local authority to address concerns of the business community and improve the business environment. The information was revealed at the meeting of the Hanoi People’s Committee chaired by Chairman Nguyen Duc Chung on February 5.

In January, Hanoi’s state budget revenue reached VND32.91 trillion (US$1.41 billion), equivalent to 11.8% of the estimate and up 43.4% year-on-year. Budget expenditure amounted to VND6.09 trillion (US$262.06 million), equivalent to 5.9% of the estimate, of which, capital expenditure was VND1.87 trillion (US$80.46 million) and regular spending VND4.22 trillion (US$181.59 million).

Total goods retail sales and services revenues in the first month of the year stood at VND255.89 trillion (US$11.01 billion), up 11.4% year-on-year.

Revenue from transportation activities hit VND10.8 trillion (US$464.74 million), up 11.9% year-on-year.

Notably, foreign tourists coming to Hanoi climbed 4.9% year-on-year to 389,000, and domestic tourists totaled 1.08 million, up 11.6%. Revenue from tourism activities in Hanoi during the month is estimated at VND6.51 trillion (US$281.4 million), up 7.1% year-on-year.  

Hanoi attracted US$141.6 million in foreign direct investment in January, including 75 new projects and existing projects which have injected an additional US$101.6 million.

A total of 1,734 enterprises were set up in January with combined registered capital of VND182.06 trillion (US$7.83 billion), representing a 9-fold year-on-year increase in value.

Meanwhile, Hanoi's Index of Industrial Production in January declined by 24.9% month-on-month and 14.2% year-on-year, mainly due to the one-week Lunar New Year holiday in January and the boost in production last December in preparation for the holiday.

Hanoi’s exports reached US$1.04 billion, down 17.4% year-on-year.  As the city spent US$2.46 billion on imports, down 11.7% year-on-year, resulting in a trade deficit of US$1.42 billion.

More efforts ahead

The local government will take drastic measures to ensure GRDP growth target for 2020 of 7.5% or higher is met.

In February, Hanoi’s authority is set to implement a series of measures in line with socio–economic development targets for 2020, aiming to minimize impacts of the nCoV outbreak on the economy.

Additionally, Hanoi would continue to boost trade and commerce activities between the city and other provinces/cities. The city is actively looking for new export markets, while putting efforts to stabilize prices of products and goods.

The upcoming Formula One race in Hanoi is considered an opportunity to attract investment, tourists and technology transfer, creating a breakthrough for economic development. the Hanoi People’s Committee requested local agencies to make efforts to ensure the success of the event.