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Dec 05, 2023 / 21:35

Hanoi sets economic growth target of 7% in 2024

Efforts continue to be directed towards enhancing the investment climate, addressing bottlenecks, and fostering production and business activities.

Hanoi strives to hit a gross regional domestic growth (GRDP) of 6.5-7% in 2024, as the city expects a favorable global context to spur a strong economic rebound.

 Vice Chairman of the Hanoi People's Council Le Hong Son. Photos: Thanh Hai/The Hanoi Times

The target was mentioned in a resolution on the 2024 socio-economic plan ratified by the municipal People’s Council today [December 5], which outlines 24 key development targets for next year.

Among key goals are GRDP per capita of VND160-VND162 million (US$6,591-$6,674); a 10.5-11.5% increase in realized investment capital; export growth of 4-5%; consumer price index growth below 4%, and a reduction in the number of poor households by 300-400.

The overall objective is to sustain growth while controlling inflation and maintaining economic fundamentals in the capital. This involves promoting positive changes through implementing breakthrough policies and restructuring the local economy, spearheaded by innovative growth models, enhanced productivity, improved quality, efficiency, competitiveness, and the internal strength of the capital's economy.

Emphasis will be placed on advancing administrative reform through digital transformation, refining and building a streamlined, effective apparatus, optimizing human resources, and restructuring the civil servants and public employees' teams.

“Efforts will continue to focus on enhancing the investment climate, addressing bottlenecks, and fostering production and business activities,” noted the resolution.

It suggests that comprehensive and synchronized development in culture, education, and health should be prioritized, along with the promotion of infrastructure and digital technology, and the integration of science and technology in the construction of smart cities. Social security and welfare policies should be effectively implemented to enhance the material and spiritual well-being of the population.

The solutions include refining the effectiveness of land and resource management, emphasizing environmental protection, and proactively responding to climate change. Rigorous management and development of urban infrastructure under approved plans are also on the agenda.

 Hanoi's leaders during the session. 

Anti-corruption measures will be significantly intensified, with a focus on eradicating negativity and minimizing waste. The goal is to enhance the efficiency of foreign affairs and international integration, ensure national defense and local military strength, and maintain social order and security. Ongoing implementation of the five themes of "Discipline, responsibility, action, creativity, and development" remains a priority.

Overcoming challenging situations
At a meeting held on the same day, Vice Chairman of the Hanoi People's Committee Le Hong Son reported that the city had successfully maintained its GRDP growth pace, with this year’s economic growth expected to be around 6.27%.
“This accomplishment is significant given the challenging global and domestic economic circumstances, largely stemming from the lingering effects of the Covid-19 pandemic. These conditions have led to a decline in domestic and foreign consumer demand, creating challenges for enterprises and resulting in a contraction in production and business activities,” said Son.
 Overview of the session. 

Son added that the socio-economic performance in 2023 successfully met 18 out of 23 planned targets. Notably, three targets exceeded expectations: a greater reduction in the number of poor households compared to the previous year (reaching 34.4% against a planned target of 30%), a higher percentage of urban wastewater treated (30.9% compared to a planned target of 28.8%), and an increase in the number of public schools meeting national standards (130 newly accredited schools and 270 reaccredited schools, surpassing the planned targets of 81 and 50 schools, respectively). Budget revenue surpassed yearly estimates by 13.5%, reaching a total of VND400 trillion ($16.47 billion).

“This revenue adequately covered development investment expenditure, regular expenditure, support for workers and employers, and social security spending,” Son stated.

Meanwhile, exports and imports have declined due to disruptions in the global supply chain and lower demand in key markets. The estimated export turnover for 2023 is $17.30 billion, an increase of 1%, while imports are expected to reach $44.17 billion, marking an 8% increase.

Double-digit growth was observed in trade and services, while agriculture showed steady growth, continuing to serve as a robust pillar of the economy. The consumer price index was well-controlled at 1.51%, markedly lower than the national level of 3.2%.

There were positive trends in social investment capital, foreign investment, and registered businesses. Social investment capital is expected to increase by 9%, slightly below the planned target of 10.5%. In the first 10 months of the year, FDI capital attracted amounted to $2.6 billion, representing a 2.04 times increase.

Son noted that Hanoi is actively executing its investment plan across three key areas: education, health, and the repair and restoration of monuments.

“There is a strong emphasis on the development of culture, with proactive promotion of cultural, sports, and tourism activities,” said Son, adding this has resulted in a remarkable 3.5-fold increase in international tourists compared to the same period, along with a remarkable 19.1% increase in domestic tourist numbers.

Special attention is being paid to investment in education, healthcare, and monument restoration. 

Meanwhile, significant progress has been made in the planning process, with approval granted for many crucial plans.

The urban technical infrastructure remains a focal point, and the construction of the Ring Road No.4 project is expected to contribute to the improvement of public transport capacity.