Hanoi's GRDP in the first quarter increased sharply: Expectations for growth in 2025

Electronic components production at Channel Well Technology Vietnam Co., Ltd. (Quang Minh Industrial Park, Me Linh District). Photo: Nguyen Quang

GRDP increased by 7.35%, FDI attraction increased by 49.5%

Hanoi's gross regional domestic product (GRDP) in the first quarter of 2025 increased by 7.35% compared to the same period last year, which is the highest increase in the past 5 years. In fact, Hanoi's economic scale is very large and when it reaches a positive growth rate, it will contribute significantly to the national economy. On the other hand, it is also necessary to consider the fact that in the first quarter, there were quite a long number of holidays and Tet, which reduced the pace of production and commercial activities in the area, to see more clearly the growth potential of the capital.

Industrial production activities in the first months of the year continued to grow quite well, when businesses received many export orders along with the city's drastic participation in directing, operating, and implementing socio-economic development solutions. The Industrial Production Index (IIP) in the first quarter increased by 4.3% over the same period in 2024, of which March increased by 5.2%. Thus, the acceleration trend over time each month has been established, which is the foundation and expectation for acceleration in the coming time.

In the first quarter, some processing and manufacturing industries achieved quite high growth rates compared to the same period, such as: Machinery and equipment production increased by 44.8%; non-metallic mineral product production increased by 15.5%; textile production increased by 14.2%; motor vehicle production increased by 13.4%; metal production increased by 12.3%; garment production increased by 7.9%; repair, maintenance and installation of machinery and equipment increased by 18.7%...

It is also noteworthy that the consumption index of products of the entire processing and manufacturing industry in March increased by 12.4% compared to the previous month and increased by 5.1% compared to the same period in 2024, while the inventory index of the entire processing and manufacturing industry as of March 31 decreased by 2.9% compared to the end of the previous month.

During the same period, the export turnover of goods reached 4.323 billion USD, up 2.6% over the same period last year, of which the domestic economic sector reached 2.215 billion USD, down 10.5%; the foreign-invested sector reached 2.108 billion USD, up 21.4%. Some items had an increase in export turnover compared to the same period such as machinery, equipment and spare parts reaching 622 million USD, up 16.5%; computers, electronic goods and components reaching 593 million USD, up 3.7%; means of transport and spare parts reaching 567 million USD, up 19.5%...

In the first quarter of 2025, Hanoi attracted 1.415 billion USD in foreign direct investment (FDI), an increase of 49.5% over the same period in 2024. This is a positive signal when the competition to attract FDI is increasingly fierce and international investors are becoming more "difficult" in choosing locations to implement new projects, combined with restructuring the production - supply chain on a global scale.

Graphics of Hanoi Statistical Office.

However, start-up activities in the area are still quiet, because in the first quarter, the city only granted certificates to 5,600 newly established enterprises, with registered capital of 44,600 billion VND; down 18.7% in number of enterprises and down 38.1% in registered capital compared to the same period last year. There are 3,900 enterprises returning to operation, up 5%. In addition, there are 14,600 enterprises registered to temporarily suspend operations (up 18.1%) and 1,400 enterprises dissolved (up 25.5%). The above reality shows the difficulties of the business community and requires support and improvement of the investment and business environment in the coming months.

Unlocking Resources

Hanoi is promoting administrative reform, creating maximum conditions for businesses through simplifying procedures, enhancing integration and connectivity, shortening the time to resolve people's and businesses' needs through the application of information technology; and modernizing infrastructure to improve service efficiency.

A recent survey showed that 34.1% of businesses believe that the production and business situation in the second quarter of 2025 will be better than in the first quarter; 46% of businesses believe that the production and business situation will be stable.

The leader of the Department of Industry and Trade said that in the coming time, the Department will strengthen its consultation with the City People's Committee to promote industrial and commercial development; promptly propose adjustments to ensure that policy mechanisms are effective when implemented in practice. Along with that, focus on supporting businesses to penetrate new markets on the basis of taking advantage of free trade agreements to promote sustainable export growth. Select a number of industries to prioritize development based on competitive advantages, the ability to deeply participate in production networks and global value chains; use clean, environmentally friendly technology...

Deputy Director of the Department of Finance Do Thu Hang added that the city will focus on promoting private investment; unblocking and effectively using public investment resources, striving to disburse over 95% of the 2025 public investment plan...

According to Ms. Trinh Thi Ngan, advisor to the Hanoi Association of Small and Medium Enterprises, the business community in the capital is increasingly growing and contributing more to the socio-economic development of the area. Many businesses are investing in modern technology, applying advanced management; especially focusing resources on digital transformation, pursuing green production goals... Thereby, effectively contributing to the growth target of the capital.

Source: https://hanoimoi.vn/grdp-quy-i-cua-ha-noi-tang-cao-ky-vong-suc-vuon-trong-nam-2025-697958.html