Hà Nội’s economy expands 6.27 per cent in 2023

Thăng Long Avenue connects western districts of Hà Nội. — VNA/VNS Photo Huy Hùng

 HÀ NỘI — Hà Nội has recorded a year-on-year growth rate of 6.27 per cent in gross regional domestic product (GRDP) in 2023, with improvement seen quarter by quarter, said the municipal Statistics Office.

The rate stood at 5.81 per cent in Q1, 5.91 per cent in Q2, 6.22 per cent in Q3, and 7 per cent in Q4, Director of the office Đậu Ngọc Hùng said, considering this year’s growth as fairly good amid complex and unpredictable developments in the world and global trade contraction.

The service sector has expanded 7.26 per cent in 2023 compared to last year, contributing 4.69 per cent to the GRDP growth. Several sub-sectors have posted relatively good growth, including administrative and support services (including tourism) up 16.33 per cent; arts and entertainment 15.39 per cent; wholesaling and retailing 10.48 per cent; finance, banking, and insurance 7.77 per cent; and transportation and warehouse services 7.7 per cent.

Meanwhile, the industry and construction sector this year has increased 5.29 per cent from 2022, contributing 1.18 per cent to the GRDP growth. The index of industrial production has grown by only 3 per cent year on year, with processing and manufacturing up 2.6 per cent, data show.

Hùng noted that industrial production faced an array of difficulties and challenges in 2023 due to global trade decline. Sales of key industrial exports dropped while domestic consumption slowed down and input costs soared, causing pressure on production.

Foreign trade faced many adversities with decreased exports to and imports from most major and traditional markets of Hà Nội. The situation had improved since Q4, but difficulties remained, the official noted.

Total foreign trade this year stands at US$54.4 billion, down 6.4 per cent year-on-year. That consists of $16.7 billion in exports and $37.7 billion in imports, respectively falling 2.4 per cent and 8.1 per cent, according to the Statistics Office.

During the year, the capital city has attracted more than $2.94 billion in foreign direct investment (FDI), comprising $441 million poured into 408 new projects, $307 million into 175 existing projects, and $2.19 billion into 326 transactions to contribute capital to and purchase shares of local companies.

In addition, 31,400 new businesses with registered capital of VNĐ346.6 trillion ($14.28 billion) have been established in Hà Nội in 2023, respectively up 6.3 per cent and 5 per cent from last year. Over 8,900 companies have resumed operations, down 8 per cent.

While 21,700 firms have suspended operation, up 33 per cent, 3,500 others dissolved, down 2 per cent. — VNS