Hanoi’s economy expands 6.27% in 2023

Hanoi (VNA) – Hanoi has recorded a year-on-year growth rate of 6.27% 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% 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 as fairly good amid complex and unpredictable developments in the world and global trade 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 posted relatively good growth, including administrative and support services (including tourism) up 16.33%; arts and entertainment 15.39%; wholesaling and retailing 10.48%; finance, banking, and insurance 7.77%; and transportation and warehouse services 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 has grown by only 3% year on year, with processing and manufacturing up 2.6%, data show.

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

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

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

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

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

While 21,700 firms have suspended operation, up 33%, 3,500 others dissolved, down 2%, according to the Statistics Office./.