Hanoi maintains its position as economic locomotive

Friday, 2018-11-30 16:06:58
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At a goods supply-demand connection conference between Hanoi and other provinces and cities in 2018
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NDO – Hanoi reached and exceeded all 20 targets of its socio-economic development in 2018, particularly in the fields of industry and trade.

Improving industrial zones and clusters

Out of the growth targets, the capital city’s budget revenue exceeded the estimate and eight others exceeded the plan. In addition, Hanoi is leading the country in term of foreign investment attraction for the first time after 30 years of door opening and international integration. Economic structure saw a positive shift with the increase of the proportion of industry,service and construction sectors, as well as a decrease in agriculture. The city’s GRDP per capita reach US$4,080 in 2018, 1.12 times higher than 2015.

The number of international visitors travelling to Hanoi reached 5.74 million this year, a year-on-year increase of 16%, fulfilling its set target two years ahead of schedule. High-tech agriculture and production linkages have been encouraged, while social welfare has been guaranteed, particularly in housing support for revolutionary contributors and the poor as well as fulfilling the poverty reduction target two years ahead of schedule.

Regarding industry, the sector’s added value is expected to reach nearly VND120 trillion in 2018, up 7.8% over the previous year, while the industrial production index went up 7.4% over the same period last year.

Hanoi now possesses nine industrial zones with a total area of 1,310 hectares and all of them have waste water treatment systems. The city is also preparing the construction of five other zones with a total area of 817 hectares.

By the end of August, the cumulative investment projects to industrial zones were 640, including 327 from foreign investment with registered capital of US$5.4 and 313 from domestic investment worth VND14.7 trillion. The number of workers in the industrial zones was148,120.

So far, Hanoi has 70 industrial clusters covering an area of 1,337 hectares and containing around 3,100 manufacturing facilities. The clusters contributed approximately VND631 billion to the city’s budget revenue and attracted around 60,000 workers. Accordingly, there are three concentrated industrial clusters in Chuong My district (50 hectares), Son Tay district (70 hectares) and Phuc Tho (55 hectares). They have created basic conditions for the development of trade villages and rural economy, as well as investment attraction for the city’s advantageous industries.

Investment in high and clean technology and sustainable development is a major trend, therefore, enterprises will increase the density of land use, promote investment in high-tech equipment and synchronous production lines and apply information and technology advances in production management.

Rapid growth in trade and services

In terms of trade and services, Hanoi continued to maintain its pace of growth. The total revenue from retail sales of consumer goods and services in the first 11 months increased 8.8% compared to the same period last year and is expected to reach VND508.918 trillion, a year-on-year increase of 12.5%.

The year 2018 witnessed the rapid development of distribution facilities in Hanoi, with a total 23 trade centres, 134 supermarkets, nearly 1,400 convenience stores, 80 chain stores, 454 markets and 439 petrol stations. The city also approved 8,741 e-commerce websites and apps. In addition, a series of specialty stores and convenience stores were formed in resident areas, contributing to promoting shopping habits in a civilised and modern manner.

The strong growth in domestic trade has been an important factor in helping Hanoi to become one of the most attractive retail markets for foreign investors. Notably, the commercial civilisation and food safety have been markedly improved. Consumers have gradually shifted their shopping habits frommarkets and sidewalks to purchasing in supermarkets and stores. As many as 766 fruit shops in Hanoi met the criteria of food safety.

Synchronous measures

Hanoi continued to set the target of improving the investment and business environment for businesses in 2019, as well as restructuring the economic sectors, promoting growth and paying attention to comprehensive development in all fields.

The city will focus on industrial products with high added value and promote the use of modern technologies that cause less environmental pollution, as well as develop export-oriented products to replace imported groups.

It is crucial to promote the development of trade infrastructure and expand the sales network in the city, while developing logistics infrastructure in combination with transport infrastructure to make Hanoi an important logistics hub of the whole country and region.

As the country’s capital and economic locomotive, Hanoi will continue to uphold its central role in cohering and developing production, supply and the distribution of goods with other provinces and cities. Accordingly, value chain linkages will be formed to improve the efficiency and competitiveness in international cooperation and integration, contributing to helping Hanoi to reach and exceed the targets of socio-economic development.

Le Hong Thang
Director of Hanoi Department of Industry and Trade