Looking back at the capital's economy - Part 1: Exceeding expectations.

Lesson 1: Exceeding Expectations

2024 is a pivotal year, with the heaviest workload throughout the term of the Hanoi City Party Congress. Hanoi is focusing intensely on perfecting institutions, alongside economic development, accelerating public investment, attracting FDI, and promoting strong tourism growth…

The "golden key" to driving growth.

Hanoi residents and businesses once experienced considerable anxiety and frustration when dealing with cumbersome administrative procedures; bureaucratic red tape; and corrupt, corrupt, and authoritarian officials. These were feelings that everyone experienced and reflected upon. Therefore, Hanoi has been undergoing a strong and pioneering reform nationwide by piloting a model of decentralization and delegation of authority, starting from the Chairman of the People's Committee of the city and extending to all levels, departments, and districts.

Hanoi is also the leading city and technology center of the country, making breakthroughs in digital transformation and building a smart city by 2025, with a vision to 2030. The goal is that by 2030, Hanoi will essentially become a smart, modern city, connected to the smart city network in the region and the world. Thanks to digital transformation, all tasks and procedures are being handled scientifically , promptly, and avoiding many negative consequences.

Hanoi also clearly defines that the responsibility of leaders must be increased along with the involvement of the entire political system, requiring them to be flexible and effective in the face of external changes; to direct and manage the rectification of long-standing internal limitations and shortcomings; and to dedicate significant time and resources to resolving unexpected and emerging issues.

The city is focusing on implementing three strategic breakthroughs, especially in perfecting institutions, building a modern governance system, and improving policies for the development of the capital. The People's Committee of Hanoi is focusing on directing the implementation of three important tasks: drafting and submitting to the National Assembly for approval the Law on the Capital (amended); developing the Hanoi Capital City Planning for the period 2021-2030, with a vision to 2050; and adjusting the General Planning of the Capital City to 2045, with a vision to 2065. The city has reported these plans to the Politburo and the National Assembly for comments; and has completed the dossiers for submission to the Prime Minister for consideration and approval. It has also organized conferences and directed efforts to resolve difficulties for businesses and investors.

The Capital City Law and Hanoi's planning projects are currently being reviewed by the Prime Minister for approval in the coming days. This can be considered the "golden key," a guiding principle for Hanoi to not only overcome all obstacles related to policies and laws, but also to achieve strong, sustainable, and secure economic development in the future. This will provide a foundation for officials to act boldly and take responsibility.

Breakthrough growth

Looking back broadly, the City People's Committee assesses that, thanks to decisive leadership and synchronized efforts from all levels, the Capital has effectively and comprehensively fulfilled the socio-economic development targets and tasks set forth in the City People's Council Resolution on the 5-year socio-economic development plan for the period 2021-2025, with the spirit of "innovation in thinking, approach, and method" to achieve clear breakthroughs and accelerate towards achieving the targets early.

Chairman of the People's Committee of Ho Chi Minh City, Tran Sy Thanh, stated: "For the first time, the city's budget revenue exceeded 500 trillion VND. This is a tremendous effort and a good sign for the city's accelerated growth in 2025. The city has completed 23 out of 24 socio-economic targets, with 6 targets exceeding the plan. This is a very important and comprehensive result, especially in the context of the whole country facing many difficulties, particularly being affected by typhoon number 3."

According to the Hanoi Statistics Department, the projected total state budget revenue for 2024 is VND 492,309 billion, reaching 120.5% of the target and increasing by 19.6% compared to the same period last year. Of this, domestic revenue is VND 461,922 billion, accounting for 93.8%, reaching 122% of the target and increasing by 21.2% compared to the same period last year. The proportion of revenue from production and business activities in domestic revenue is VND 188,742 billion, accounting for 40.9% of domestic revenue, reaching 107.3% of the target and increasing by 10.6% compared to the same period last year; revenue from housing and land is VND 48,590 billion, reaching 114.0% of the target and increasing by 129.1% compared to the same period last year; specifically, revenue from land use fees is VND 36,100 billion, reaching 100% of the target and increasing by 140.5% compared to the same period last year.

Hanoi's GRDP for the first nine months of 2024 increased by 6.12%, with an expected annual growth rate of approximately 6.52%. The GRDP is estimated at around US$58.6 billion. State budget revenue exceeded VND 500,000 billion for the first time, an increase of nearly 20% compared to 2023, accounting for about 28% of the total national revenue. GRDP per capita is estimated at VND 163.5 million… Goods exports reached US$15.467 billion, an increase of 12.3% compared to the same period. Goods imports in 2024 reached US$33.2 billion, an increase of 9.6% compared to the same period in 2023 (which saw a decrease of 9.5%), of which the domestic economic sector accounted for US$27.6 billion, an increase of 10.2%; and the foreign-invested sector accounted for US$5.6 billion, an increase of 6.9%.

Throughout the year, Hanoi focused its resources on development investment; prioritizing resources for key projects such as Ring Road 4, transportation projects, and projects under the investment plan in three areas: healthcare, historical sites, and education...

The public investment plan for 2024 has been allocated at VND 81,033 billion, 1.72 times higher than in 2023. As of November 15, 2024, the disbursement of public investment across the city reached VND 37,066 billion, achieving 48.1% of the budget.

Tourism continues to affirm its position as a key economic sector, generating significant budget revenue and experiencing considerable growth. The number of tourists has increased significantly, with many attractive night tour products receiving widespread participation and positive reviews from visitors. It is projected that in 2024, the capital's tourism industry will attract over 27 million visitors, a 9.2% increase compared to 2023; including over 5.5 million international tourists (3.8 million of whom stayed overnight, a 16.4% increase compared to 2023) and over 21.5 million domestic tourists (a 7.5% increase compared to 2023). Total revenue from tourism is expected to reach over 109.41 trillion VND, a 28.2% increase compared to 2023. The average occupancy rate of accommodation establishments and hotels is projected at 62%, a 3 percentage point increase compared to 2023.

The city focuses on attracting investment capital, creating favorable conditions and mechanisms to invite domestic and foreign businesses to invest in the area. It is projected that in 2024, the city will attract over $2 billion USD – achieving the 2024 plan.

The City People's Committee organized six dialogue conferences to address difficulties and obstacles faced by businesses investing in specific areas, including socio-cultural fields, businesses operating in industrial zones and clusters, businesses operating in craft villages, foreign investment in the area, social housing, parking lots, and the environment. The city established and maintained an online information system (Zalo, website, etc.) in real time to interact, exchange, and collect feedback, suggestions, and proposals to resolve difficulties and obstacles for businesses, investors, organizations, and individuals in the area.

Therefore, while the number of newly registered businesses decreased this year, the number of businesses resuming operations increased; 25,020 new businesses were granted business registration certificates with a registered capital of VND 244,636 billion, and 8,408 businesses resumed operations (a 13% increase compared to the same period). The total number of registered businesses in Hanoi currently stands at nearly 400,000.

With positive results in 2024, the city continues to implement strong measures to achieve the goals set by the Party Congress in 2025.

Final article: 5 growth options for 2025

Source: https://doanhnghiepvn.vn/kinh-te/nhin-lai-kinh-te-thu-do-bai-1-can-dich-hon-mong-doi/20241227095910623