Hanoi sees strong economic performance in Q3

A food processing plant in Hanoi (Photo: VNA)

Hanoi continued seeing positive economic development in its third quarter with gross regional domestic product (GRDP) growth of 9.2 percent, higher than those of the previous quarters and the same period last year, according to Director of the municipal Department of Planning and Investment Ngo Van Quy.

In the first nine months of this year, the capital’s GRDP rose 8.3 percent, the highest rise in the last four years, said Quy.

In the third quarter, growth was seen in all sectors, especially industry with 8.2 percent, construction with 11.9 percent, and service with 8.8 percent. The city welcomed about 1.6 million foreign visitors, up 13.8 percent year-on-year.

Meanwhile, agriculture also saw about 2 percent growth and 18 additional communes proposed to be recognised as new-style rural areas, raising the total number of communes meeting the programme’s standards to 127.

Total budget collection in the first nine months of this year was estimated at 105.89 trillion VND, equivalent to 74.7 percent of the estimate.

Inflation continues to be under control while consumer price index rose 0.71 percent, the lowest rise in many years.

In a bid to boost business, the city allocated 65 billion VND to a trade and investment programme and spent 35.3 billion VND to support local enterprises.

However, the capital’s exports remained low despite a slight 2.9 percent rise in the third quarter and only 0.2 percent in the first nine months, far below the targeted 8-9 percent.

The number of newly-established enterprises in September was 14,142, up 37.6 percent. However, dissolved firms mounted to 10,523, a 27.5 percent rise year on year.

Director of the municipal Department of Industry and Trade Le Hong Thang attributed the poor export performance to fluctuating exchange rates as well as a rise in the prices of several input factors such as water and power.

Traditional export products like rice and coffee declined 6.6 and 21 percent, respectively, while exports to major markets like Russia and the US also declined, he added.

Thang held that in order to reach the 11.2 percent target in the last quarter of this year, the city should focus on speeding up administrative reforms and consider cutting the price of land rent for enterprises and creating land reserves for industry.

Chairman of the Hanoi People’s Committee Nguyen The Thao said that it is necessary to roll out stronger measures to support businesses, especially in capital and markets, if the city wants to fulfil the growth goal of 9-9.5 percent for the whole year.

It is also crucial to work harder to see a 1.5 percent decrease in the household poverty rate this year, he said. He asked municipal departments and agencies to improve their service attitudes and responsibility to better serve citizens and enterprises.-VNA