31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Jan 14, 2023 / 10:09

Hanoi maintains growth momentum for development

Priorities for Hanoi in 2023 include the execution of major transport projects, carrying out a decentralization scheme within the state apparatus, and allocating funds for investment in culture, health and education.

In 2022, Hanoi met all 22 socio-economic targets, including a real GDP growth rate of 8.89%, highlighting the great efforts of the local government, businesses and citizens to overcome challenges and drive sustainable development.

 Hanoi from above. File photo

After a challenging period caused by the Covid-19 pandemic, the government adopted the approach of flexible and safe adaptation to the pandemic, finally laying the foundations for socio-economic recovery.

Vietnam’s GDP growth in 2022 reached 8%, exceeding the target of 6-6.5% set by the National Assembly, and remained the highest in the region.

Meanwhile, the country’s trade turnover surpassed the US$ 700 billion mark for the first time, and actual FDI disbursement was at a five-year high of nearly $20 billion.  

Other highlights included an 8% year-on-year increase in state budget revenue, while the number of enterprises returning to operation was 1.5 times higher than those that exited the market.

In this context, Hanoi had made an important contribution to the overall development of the nation. The city's effective control of the Covid-19 pandemic for the reopening of socio-economic activities since March 15, 2022 had created momentum for economic recovery.

The successful organization of the 31st SEA Games and the 10th Capital Sports Games in Hanoi also triggered the speedy recovery of the service industry in particular, and the economy overall.

In addition to a cautious approach in dealing with the Covid-19 pandemic, Hanoi’s authorities stood firm in changing its mindset for development taking drastic actions to support the people and business community.

Among the priorities set for 2023 and the years to come are the completion of the national priority project Ring Road No.4 – Hanoi Capital Zone; the decentralization scheme in local apparatus to ensure a fast and effective decision-making process; and the investment plan in three fields of culture, healthcare, and culture.

The numbers clearly demonstrate the efforts of all levels and sectors, among which the growth of the city's GRDP in 2022 of 8.89% year-on-year stands out.

Total state budget revenue in the city reached VND333 trillion ($14.1 billion), 6.8% higher than the year’s estimate and up 2.7% against last year.

The socio-cultural fields continue to see the authorities focus on their development. The city has issued and launched the capital's cultural industry development plan for the 2021-2025 period, with an eye on 2030. At the same time, Hanoi has started an investment plan to build national-level schools, improve the healthcare system and promote cultural heritage, with a total investment capital of VND49.2 trillion ($2.1 billion) in the 2021-2025 period and beyond.

In the 2021-2022 period, the city has invested in upgrading and building 143 national-level public schools, 150 medical facilities, and more than 200 cultural heritages subject to conservation.

Meanwhile, the city has supported more than 2.6 million people affected by the Covid-19 pandemic with a budget of nearly VND2.6 trillion ($110 million); created jobs for more than 183,000 locals, exceeding the plan by 14.3%; helped more than 1,400 households out of poverty, and 6,670 households out of near poverty, ensuring social security and improving people's living standards.

Improving investment environment

As the city considers the business community and home businesses a driving force for growth, one of the priorities for Hanoi in 2022 was to improve the investment and business environment and support local firms, cooperatives, and business households to quickly resume production and activities.

In this regard, the city made great efforts in reviewing and simplifying administrative procedures, reducing time and costs for businesses. In particular, Hanoi continued to remove difficulties and obstacles in planning, investment, land, and construction procedures and drastically implement site clearance to ensure the speedy execution of public projects.

At the same time, the city held dialogues with the business community to learn about their concern and difficulties for timely intervention, if needed.

An improved business and investment environment resulted in the establishment of over 27,600 new businesses in the city, up 26% year on year.

The rate of businesses applying for operational licenses online was maintained at 100%, while the city attracted over $1.54 billion in FDI in 2022, up 11.6% year on year.

To accompany businesses, the city has reduced value-added tax for over 72,000 businesses with a total tax break of over VND13 trillion ($550 million); extended tax land rental fees payment due date for nearly 19,000 businesses worth nearly VND12 trillion ($508 million).

In 2022, the municipal Taxation Department organized two online conferences with the participation of more than 196,000 businesses in the city, in which more than 500 petitions from businesses and taxpayers were properly addressed.

The city leaders had actively worked with ministries, departments, and branches to remove hindrances in mechanisms and policies for businesses and support economic growth.

At the beginning of December 2022, Chairman of the Hanoi People’s Committee Tran Sy Thanh held a dialogue with representatives of the business community, during which he requested local authorities to soon reply to business recommendations, saying this is among the city’s priorities.

In line with this effort, Thanh reported that Hanoi would speed up the decentralization of powers in the state apparatus, which is seen as an effort by the city to deal with citizens' frustration in complying with administrative procedures.

So far, the city has delegated 700 administrative procedures under its jurisdiction to district and ward levels, as the city mayor noted that grassroots agencies best understand the problems faced by citizens and businesses. "More effort in administrative reform and delegation of tasks in the state apparatus would help Hanoi attract more resources for development," Thanh said.