Hà Nội’s economy on recovery path

Hà Nội has seen a recovery in industrial production and trade in the first two months of this year as the capital city followed safe adaptation and effective control of COVID-19. — VNA/VnExpress News Photo Trần Việt

HÀ NỘI — The industrial production and trade of Hà Nội has been on a recovery trend from the beginning of the year, driven by the capital city’s policies of reopening business activities after months of closing down to fight the pandemic.

The capital city’s index of industrial production was estimated to increase by 4.6 per cent in the first two months of this year.

Specifically, the manufacturing and processing industry rose by 4.8 per cent, power production and distribution by 1.8 per cent, and water supply and waste treatment by 4.3 per cent.

Industries that saw significant increases included paper production by 49.7 per cent, wood processing and wood products by 20.7 per cent, electronic products and computers by 11.9 per cent, rubber and plastic products by 11.1 per cent.

The capital city witnessed a rise of 30.9 per cent in export to reach a value of more than US$2.6 billion in January – February, of which the domestic sector’s export value was estimated at $1.4 billion, up by 33.9 per cent while the foreign direct investment (FDI) sector saw an increase of 27.7 per cent in export value.

The total retail sale of goods and services was estimated at VNĐ109 trillion ($4.77 billion) in the first two months of this year, representing a rise of 9.9 per cent against the same period last year.

According to the municipal Statistics Department, as Tết (Lunar New Year) holidays fell in early February, trade activities slightly dropped against the previous month but were more robust over the same period last year.

The capital city also reopened several business activities, including tourism, restaurants and hotels, which helped drive the recovery of trade and services.

After the Tết holiday, industrial production companies in the city did not face a serious shortage of workers, with the number of employees working at the companies as of the end of February 1.2 per cent higher than the previous month and 0.3 per cent higher than the same period last year.

Businesses were gearing up to reach their targets with a determination to capture opportunities arising from the economic recovery.

Nguyễn Đoàn Thăng, general director of Rạng Đông Light Source and Vacuum Flask Joint Stock Company, said that the company would renovate its business model together with actively expanding exports and speeding up the digital transformation process.

Aiming to stimulate domestic demand, boost sales, promote production and consumption of goods and services to accelerate economic recovery, the municipal People’s Committee issued Plan No 39/KH-UBND to organise a trade promotion programme in 2022.  

The city will raise solutions to enhance the competitiveness of enterprises, speed up administrative reforms with the focus on applying information and technology in handling administrative procedures, and develop policies to promote production and exports, according to the plan.

The city set the target of a 5 per cent increase in export value in 2022.

The capital city said that it was essential to enhance the efficiency of trade and investment promotion activities.

Focus would also be placed on developing human resources and attracting investment in the infrastructure system.

Enterprises were used to strengthen digital transformation and invest in automation and green production models to enhance competitiveness and participation in the global production chain.

Trần Phương Lan, acting director of the Hà Nội Department of Industry and trade, said that the department would join with relevant agencies to stimulate demand and promote trade in line with existing regulations on safe adaptation and effective control of COVID-19. — VnExpress News