Hanoi stands firm on GDP growth target of 7-7.5% in 2022

Hanoi is determined to draw on the growth momentum from the first half of 2022 to achieve socio-economic development objectives this year, mainly the GDP growth target of 7-7.5%.

Hanoi's economy is gaining momentum. File photo

Vice Chairman of the Hanoi People’s Committee Ha Minh Hai affirmed the municipal authorities' resolve during a recent meeting.

According to Hai, the key priority for the capital city in the coming months would be to stabilize the market prices of strategic commodities, and further facilitate trade for sustainable exports.

"Hanoi would continue to implement government support policies based on tax cuts and preferential loans for locals to boost post-pandemic recovery," he said.

In addition, Hai expected Hanoi to focus on administrative reform and improve the business environment.

“The key objective is to address the business concern to accelerate the progress of investment projects, including those financed by foreign firms,” Hai said.

Hai added that the capital city targets to attract around US$4 billion in FDI every year, seen as a key source for economic growth.

As part of the economic reopening process, Director of the municipal Tourism Department Dang Huong Giang said Hanoi is focusing on developing new tourism products that are based on the city’s unique advantages.

In 2022, Hanoi expects to receive 9-10 million tourists, including 1.2-2 million foreigners and so far has welcomed  8.61 million, nearly triple the figure year-on-year, Giang added.

Acting Director of Hanoi’s Department of Industry and Trade Tran Thi Phuong Lan noted a set of measures to facilitate trade and consumption, including sales promotion programs offering up to 100% discounts, scheduled to take place in May, July, and November.

Lan said the capital city also plans to organize support industry fairs for companies to look for business opportunities.

With public investment identified as one of the key measures to boost growth, the Director of the Hanoi Department of Planning and Investment Do Anh Tuan said the local authorities are committed to accelerating the disbursement progress.

As of the end of the first quarter, Hanoi’s disbursement stood at 8% of the year’s target but then went up to 35% by the end of June, up 73.1% year-on-year.

“All districts and units are expected to accelerate construction progress while ensuring project quality and timely completion,” he said.

The local economy has seen a strong recovery during the second quarter of 2022 with the GRDP expanding by 9.49% during the period, beating the expectation of 6.4-6.9% set in early 2022.

This resulted in Hanoi’s economic growth of 7.79% in the first half of 2022, a 1.29-fold increase against the same period of last year and higher than the 7.21% rate recorded in the six months of 2019 (before the pandemic).

During the January-June period, the services sector was among the growth drivers by posting a high growth of 9.05%, a 1.54-fold increase year-on-year.

Exports also remained a highlight with a turnover of US$8.5 billion, up 19.5% year-on-year, together with state budget collection of VND177.5 trillion ($7.56 billion), up 22.4% year-on-year.