Hanoi GRDP expands by 8.89% in 2022

Hanoi’s GRDP  2022 expanded by 8.89% in 2022, the highest growth rate in the past few years, with strong recovery seen in almost all economic sectors, especially  services and industrial production.

Hanoi from above. Photo: Viet Dung

“The strong performance showcased the determination of the local authorities, the efforts of the business community and people to adapt to a new Covid-19 situation and boost socio-economic recovery.”

Head of the Hanoi’s Statistics Office Dau Ngoc Hung gave the information during a press conference on December 28.

According to Hung, since early 2022, Hanoi has effectively contained the Covid-19 pandemic, laying the foundation for the city to resume socio-economic activities.

“The reopening of restaurants, hotels, and tourism activities have contributed to the development of services sectors. The city also gave priority to the speedy resumption of cultural and social events. All these factors have contributed to a comprehensive result in socio-economic development,” Hung added.

In particular, the head of the municipal Statistics Office highlighted the strong progress in the development of the service and industrial sectors. In 2022, Hanoi's services grew by 10.06% year-on-year, contributing 6.44 percentage points to the overall growth.

“Hanoi continues to promote sales and promotional activities to boost domestic consumption, at the same time encouraging new business models in line with the growing popularity of e-commerce,” he said.

For their part, the industrial and construction sectors grew by 7.74% year-on-year in 2022, contributing 1.75 percentage points. Of which, the industrial sector grew by 8.03%, contributing 1.14 percentage points to growth.

The manufacturing and processing activities, the main driving force of the economy, reached a growth rate of 8.11%, contributing 1.04 percentage points to Hanoi’s growth.

“The majority of production companies have resumed their operation and the supply chains two years since the outbreak of the Covid-19 pandemic,” Hung added.

Other notable results from Hanoi’s socio-economic progress include a trade turnover of $58 billion in 2022, up 15% year on year, in which exports rose by 10.3% to $17.1 billion.

Hanoi’s tourism has been on the rise with the city being recognized as one of the top travel destinations in Asia and the world.

In 2022, the number of tourists coming to Hanoi was estimated at 2.6 million, a 2.4-fold increase against last year.

The city’s state budget revenue surpassed the year’s target of 6.8% to VND333 trillion (US$14 billion; the number of newly established enterprises was nearly 30,000, up 23%; and foreign direct investment  hit $1.69 billion, up 10.3%.)

Higher economic resilience in 2023 a priority

Many foresee a more uncertain world in 2023, with the global economy slowing and entering recession, along with increased risks in the financial, monetary, energy and food security arenas.

Hung expected Hanoi to give priority to enhancing economic resilience and its adaptability to external shocks.

He suggested among the priorities a drastic boost in public investment, especially in large-scale projects; promoting investment in digital infrastructure, science-technology, innovation and startups.

Administrative reform and improving the business environment should be the priorities for the city's sustainable development, he added, referring to the application of IT in state governance and the development of digital government.

By 2023, Hanoi is targeting a GDP per capita growth of 7% and a GDP per capita of 150 million dong (US$6,340).