Hanoi’s economy expands 6.27% in 2023

Hanoi posts a GRDP growth rate of 6.27% in 2023. (Photo: VNA)

Hanoi (VNA) – Hanoi has recorded a year-on-year growth rateof 6.27% in gross regional domestic product (GRDP) in 2023, with improvement seenquarter by quarter, said the municipal Statistics Office.

The rate stood at 5.81% in Q1, 5.91% in Q2, 6.22% in Q3, and 7% in Q4,Director of the office Dau Ngoc Hung said, considering this year’s growth asfairly good amid complex and unpredictable developments in the world and globaltrade contraction.

The service sector has expanded 7.26% in 2023 compared to last year,contributing 4.69% to the GRDP growth. Several sub-sectors have postedrelatively good growth, including administrative and support services (includingtourism) up 16.33%; arts and entertainment 15.39%; wholesaling and retailing10.48%; finance, banking, and insurance 7.77%; and transportation and warehouseservices 7.7%.

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

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

Nhat Tan Bridge in Hanoi (Photo: VNA)

Foreign trade has faced manyadversities with decreased exports to and imports from most major andtraditional markets of Hanoi. The situation has improved since Q4, butdifficulties remain, the official noted.

Total foreign trade this year standsat 54.4 billion USD, down 6.4% year on year. That consists of 16.7 billion USDin exports and 37.7 billion USD in imports, respectively falling 2.4% and 8.1%

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

In addition, 31,400 new businesses withregistered capital of 346.6 trillion VND (14.28 billion USD) have been establishedin Hanoi in 2023, respectively up 6.3% and 5% from last year. Over 8,900companies have resumed operations, down 8%.

While 21,700 firms have suspendedoperation, up 33%, 3,500 others dissolved, down 2%, according to theStatistics Office./.

VNA