Hanoi's economy improves as safe adaptation plan gathers pace

Hanoi’s economic performance is gradually improving as the city accelerates plan to ensure safe and flexible adaptation to the Covid-19 pandemic for gradually reopening of economic activities.

Hanoi from above. Photo: Pham Hung

In October, revenue from retail sales and services surged by nearly 60% against the previous month to VND56 trillion (US$2.4 billion), of which, retail revenue rose by 25.5% to VND32.3 trillion ($1.4 billion), hospitality and catering services to VND5.3 trillion ($231 million), 2.1-fold increase against September.

Meanwhile, revenue from tourism also went up by a significant margin compared to September to VND304 billion ($13.24 million), while that of services to VND18.1 trillion ($788.7 million), nearly triple the amount recorded in September.

The number of foreign tourists during the month was estimated at 11,000, up 40% against September, and that of domestic tourists at 8,300, up 22.1%.

Since October 14, Hanoi’s authorities have allowed the resumption of transportation activities after nearly three months of suspension. So far, the number of passengers reached 4.6 million, down 77.7% year-on-year, while freight transport stood at 72.2 million tons, up 30% against last month.

Hanoi also recorded 57 new foreign direct investment (FDI) projects with a combined registered capital of $34 million, taking the total number to $1.2 billion in the ten-month period.

State budget revenue in the January-October period was estimated at VND216.9 trillion ($9.45 billion), or 92.1% of the year’s estimate and up 8.7% year-on-year.

Hanoi also addresses the difficulties of the people and businesses affected by the pandemic, for which total financial support as of October 22 reached VND2 trillion ($87.1 million).

The pandemic and especially the fourth Covid-19 outbreak dealt a huge blow to the city’s economy as the economic growth slowed down by 7.02% year-on-year in the third quarter, resulting in a growth rate of 1.28% for the nine-month period.

Chairman of the Hanoi People’s Committee Chu Ngoc Anh said the city is focusing on moving from the “zero-Covid” strategy to safe and flexible adaptation to the situation.

“Hanoi would continue to raise the public awareness on efforts against the pandemic,” he added.

According to Anh, the city would draft growth scenarios in line with the progression of the pandemic with the target of minimizing its impacts on businesses.

For the remainder of the year, Hanoi would prioritize higher disbursement of public funds; manage State budget collection in an effective manner; and push for administrative reforms.

Acting Director of the municipal Department of Industry and Trade Tran Thi Phuong Lan said the department is working on an economic recovery plan in trade and commerce activities.

“Hanoi is committed to ensuring sufficient supplies of basic necessities and input materials for production,” Lan noted, adding she expected the resumption of trade promotion activities and the operation of shopping malls or wet markets.

The Director of Hanoi’s Department of Taxation Mai Son said the agency would follow the situation of the business community and assess the impacts of current supporting programs on budget revenue.