Capital city’s GRDP forecast to expand by 6.11% in 2023

A part of Hà Nội. The city has been accelerating urban planning and management. — VNS Photo Đoàn Tùng

HÀ NỘI — The capital city’s economic growth is expected to reach 6.11 per cent by year-end, a positive performance amid the challenges faced by both global and domestic economies, according to the municipal People’s Committee.

Hà Nội would likely achieve 18 out of the 23 socio-economic targets, with three surpassing expectations, vice chairman of the committee Hà Minh Hải told a recent meeting in the city.

Hải added that in 2023, the city’s other key economic indicators would include a 9 per cent increase in social investment and nearly US$2.9 billion in foreign investment, marking a 62 per cent year-on-year rise.

Total retail sales of goods and consumer services were projected to rise over 10 per cent, and domestic and international tourists were expected to exceed the set targets. Meanwhile, the number of newly-established enterprises was forecast to hit almost 26,500, a yearly increase of 6 per cent.

In addition, the city’s State budget revenue was on track to exceed projections. The expected total revenue was over VNĐ400 trillion ($16.5 billion), 13.5 per cent higher than the estimated amount or a 20 per cent increase compared to 2022.

The city also expected its total expenditure at over VNĐ102 trillion, reaching 97.2 per cent of the original estimate. Export turnover was estimated at $17.3 billion, marking a modest rise of 1 per cent, while import turnover was projected at $44.2 billion, up 8 per cent year-on-year.

Hải said Hà Nội had been accelerating urban planning and management and had approved several significant plans. Noteworthy projects included the draft capital planning and the adjustment to the city’s overall construction planning, which was currently seeking feedback for completion.

It had also been pumping substantial investments in infrastructure construction and urban development, with completed projects such as the extension of Huỳnh Thúc Kháng Street, the second phase of Vĩnh Tuy Bridge, and Chùa Bộc-Phạm Ngọc Thạch intersection flyover and the start of construction of Ring Road No 4.

According to Hải, Hà Nội would continue to develop commercial, social, and resettlement housing and would speed up the implementation of projects for the renovation and reconstruction of old apartment buildings. Regulations about the renovation and reconstruction of apartment buildings were being finalised.

Strong economic rebound in 2024

The city also set key tasks for socio-economic development in 2024 with priorities given to achieving overall growth while keeping inflation under control and ensuring economic stability.

It would also focus on speeding up administrative reforms through digital transformation, enhancing the efficiency of its apparatus, and improving its investment and business environment.

Ensuring comprehensive development in the cultural, educational, and health sectors besides the integration of digital infrastructure and technology to build smart cities would also be included.

Hải said the capital city targeted to increase gross regional domestic product (GRDP) by 6.5-7 per cent, maintain the Consumer Price Index (CPI) below 4 per cent, achieve GRDP per capita of approximately VNĐ160-162 million, and raise disbursed investment capital by 10.5-11.5 per cent.

To this end, the city outlined nine key tasks and solutions for 2024, including ensuring growth goals while managing inflation and economic balances, restructuring industries with a focus on technology integration, and enhancing the efficiency of local government.

Top priority would also be given to perfecting the investment and business environment and facilitating production and business activities.

A woman shops at a supermarket in Hà Nội. Total retail sales of goods and services saw a positive yearly growth of 10.5 per cent in nine months of 2023. — VNS Photo Đoàn Tùng

Positive economic performance in 9 months

Over the past nine months, the city’s GRDP rose 6.08 per cent year-on-year, according to the municipal Department of Statistics.

Of which, the service sector surged 7.2 per cent over the same period last year, contributing 4.73 per cent to the increase in GRDP.

The service sector continued to be a bright spot in nine months, playing an important role in the city’s overall growth. Total retail sales of goods and services saw a positive yearly growth of 10.5 per cent.

During the reviewed period, the industrial and construction sector increased 4.57 per cent over the same period last year, contributing 0.96 per cent to the increase in GRDP. Meanwhile, the agro-forestry-fisheries sector grew 2.5 per cent over the same period, contributing 0.05 per cent to the GRDP rise.

The department noted that foreign investment attraction continued to be a bright spot for Hà Nội during the period. Among 54 cities and provinces, Hà Nội took the lead with nearly $2.53 billion, accounting for nearly 12.5 per cent of the total investment registered in the country and increasing 2.46 times over the same period last year in 2022.

Besides, the number of newly-registered businesses in the city also increased by 2 per cent over the same period; businesses returning to operations decreased by 15 per cent while dissolved enterprises dropped by 1 per cent. — VNS