Hanoi’s GRDP maintains growth in first half

According to a report by the Hanoi City People’s Committee, in the first six months of 2023, the total state budget revenue of the city was valued at VND220.121 trillion, equal to 62.4 percent of the year’s estimate, up 22.9 percent over the same period last year; while the total local budget expenditure stood at VND39.769 trillion, or 37.8 percent of the estimate, up 26.8 percent year on year.

At the press conference on Hanoi's socioeconomic performance in the second quarter of 2023 - Photo: The Hanoi People’s Committee

The city’s export turnover in this period reached more than US$8 billion, down 2.7 percent; while the import turnover reached US$17.386 billion, down 16.3 percent.

In terms of the Consumer Price Index (CPI), Hanoi CPI rose on average by 1.22 percent compared to the same period last year and achieved the set target (below 4.5 percent).

In general, the GRDP growth in the first half 2023 was maintained at 5.97 percent - a good increase amid dual economic affects by the imbalance of supply and demand due to the Russia-Ukraine conflict and from currency tightening policies of many countries.

Economic sectors still grew; however, some sectors tended to slow down. For example, the total retail sales of consumer goods and services increased by 10.4 percent (compared to the 13.6 percent increase of last year); the volume of transported goods by 20.8 percent (compared to a 30.8 increase of last year); industrial production and construction growth at 3.28 percent, lower than the 6.31 percent of last year. Meanwhile, FDI attraction in the period reached US$2.265 billion, leading the country in this field and 15,618 new enterprises were established, a year on year increase of five percent.

The decline in exports has significantly affected the capital’s economy. Besides, the purchasing power of the domestic market and production and business activities tend to slow down, thereby, could possibly impact the socioeconomic implementation and targets in 2023.

To achieve the target of seven percent year-on-year GRDP growth in 2023, it must achieve the rate of 7.54 percent or more, and 8.23 percent (or more) in the third and fourth quarter respectively, which are very challenging tasks.

From now until the end of the year, Hanoi will strive to ensure stable economic growth; control inflation; continue to promote growth drivers; accelerate disbursement of public investment capital and site clearance works; enhance responsibility of leaders; ensure social security; improve the efficiency of state management in planning, urban land and residential areas and environmental protection; prevent and fight against corruption and wastefulness; strengthen administrative procedure reform associated with digital transformation; and provide solutions to raising the PAPI, SIPAS, PAR, PCI and PGI indexes.

In addition, Hanoi will focus on improving the efficiency of external affairs, specifically concerning international cooperation in science and technology with cities and international organizations, investment and trade promotion; actively participate in the network of green, distinctive, sustainable and smart cities in the region and the world; and facilitate the establishment of representative offices of international organizations in Vietnam.