Hanoi’s GRDP growth set to hit 8.89% in 2022

Hanoi’s economy has been on a steady path of recovery, with the gross regional domestic product (GRDP) growth set to reach 8.89% in 2022.

Vice Chairman of the Hanoi People's Committee Ha Minh Hai. Photos: Thanh Hai/The Hanoi Times

Vice Chairman of the Hanoi People's Committee Ha Minh Hai gave socio-economic details of Hanoi at the 10th session of the municipal People's Council held today [December 7].

Hai attributed such high growth to the firm leadership of the Government and the municipal Party Committee, as well as the active response of businesses and people during the fight against Covid-19 and the subsequent socio-economic recovery.

"Thanks to this, the city has completed all 22 socioeconomic indicators set for this year," Hai stated.

Another highlight included the high budget revenue at VND333 trillion ($14 billion), 6.8% higher than the yearly estimate and up 2.7% year on year.

According to Hai, since the reopening of the economy on March 15, the local authorities have provided financial support for 2.6 million people with VND2.6 trillion (US$109 million), while creating new jobs for 183,000 locals, exceeding the year’s target by 14.3%.

Hai noted the effective management of the city’s trusted fund at the Vietnam Bank for Social Policies – Hanoi Branch helped 1,400 households escape poverty and 6,670 others out of the near-poor status.

Under the Government’s instruction, the local authorities have also cut value-added tax for over 72,000 businesses for a total of VND13 trillion ($544.7 million); extended payment due date for taxes and land rental fees for 19,000 others for VND12 trillion ($503 million).

In addition to economic development objectives, Hai suggested the city prioritize sociocultural aspects.

In 2022, the Hanoi People’s Committee issued an action plan to develop the cultural industry in the city for the 2021-2025 period, with a vision to 2030, targeting to mobilize the cultural and human resources for growth effectively.

To date, the city’s budget has allocated over VND11.4 trillion ($477.7 million) for 668 cultural-social related projects, and localities provided their respective counterpart funds of VND677 billion ($28.4 million).

Hai also highlighted the strong progress in urban planning and management, with the city having approved four major master plans and issued technical specifications for architectural works in the downtown areas.

Deputies at the session.

Digitalization as Hanoi’s driving force for growth

In anticipation of further challenges in 2023, Hai said the Hanoi People’s Committee would continue to improve its state governance capabilities by applying IT and digitalization during the operation process.

“Transparency in data management, the establishment of a concentrated database for the city, and greater deregulation in administrative works among different agencies are steps to promote efficiency in the state apparatus,” stated Hai.

In the meantime, the city leader hopes digitization will remain central to Hanoi's socio-economic development efforts, promote new business models, and encourage scientific-technological activities, innovation, and startups.

Hai stressed the significance for Hanoi to continue accelerating the disbursement of public funds, especially in key infrastructure projects, while pushing for comprehensive development in the fields of culture and education.

“The city aims to effectively contain the pandemic, ensure social welfare and improve people’s living standards,” he said.

For long-term solutions, Hai added the city is determined to speed up the planning process, promote the development of digital infrastructure, tighten the management of natural resources, and actively respond to climate change issues.