Hanoi's economy maintains robust growth in H1

Along with the rest of the country, Hanoi faced many challenges in the first half of this year, but the city still managed to achieve remarkable results, especially in economic development, according to the Hanoi Statistics Office.

Garment exports produced at May 10 JSC. Photo: Thanh Hai/The Hanoi Times

Since the beginning of the year, Hanoi's leadership has been urging all levels of government, sectors, and localities to focus on solutions to remove difficulties for businesses and promote socio-economic development programs, according to Deputy Director of the Hanoi Statistics Office Vu Van Tan.

Thanks to these efforts, industrial production activities showed many positive signs in the second quarter of 2024, as orders continued to increase, he said.

During January-June, the industrial production index increased by 5%, with the processing and manufacturing industry up 4.1% and the product consumption index surging 13.1%.

Another highlight is over US$1.1 billion of foreign investment in the city, including over US$1 billion of 120 newly registered projects; US$55 million of capital increase in 78 projects; and US$74 million of capital contribution and share purchase by 104 foreign investors.

“Thus, Hanoi remains an attractive destination worthy of international capital flows,” Tan said.

According to the agency, exports are back on track and have grown significantly, with an export turnover of $8.9 billion, up 11% from the same period in 2023. Of this, the domestic economic sector exported $5.2 billion worth of goods, up 14.8%, while the foreign-invested sector recorded an export turnover of $3.7 billion, up 6.1%.

However, Hanoi still faces some constraints, including a lower GRDP growth rate than the national average, low public investment outlays, and delays in project implementation due to land acquisition problems. High land rental costs compared to nearby areas and distance from seaports also hinder investment attraction, the Deputy Director said.

"Hanoi is resolutely undertaking support measures for businesses and increasing the accountability of various levels of authorities, sectors, and individual positions in fulfilling their assigned tasks," Tan said.

Trinh Thi Ngan, chair of the HANOISME advisory board, says businesses need timely and effective government support at all times. For regulations and policies to have a real impact on business operations, they must be implemented on time.

"Administrative reforms combined with deferring, delaying, and reducing taxes and fees, as well as creating a fair mechanism and providing opportunities for businesses, are important conditions to promote development," she added.

Local experts said that the business landscape in Hanoi has become brighter, with the number of newly registered businesses and those resuming operations outnumbering those exiting the market. This is an encouraging sign, as it represents factors driving economic growth. However, the relevant authorities need to provide more effective and substantive support to businesses in order to foster sustainable development of the business community.