Spreading motivation for development

18/8/2020| 8:23

The Covid-19 pandemic has exerted a major impact on the country’s economy, including in Hanoi; however, thanks to the calm determination and effort in implementing the "dual goal" of fighting against the epidemic and boosting economic development made by both leaders and people, the capital’s economic growth reached 3.39% in the first six months of this year with great attraction of large investment and fast implementation of key projects.

The elevated road between the Mai Dich flyover and the southern end of the Thang Long Bridge, part of Hanoi's ring road no.3, is nearly completed.

Accordingly, the achievements of the capital city have contributed to spreading the motivation for development to other regions and localities around the country.

Since the Covid-19 epidemic outbreak began, Hanoi’s Party committee, authorities and people determined that it was essential to pay much attention, make more efforts and unite to implement the “dual goal” of fighting against the pandemic and developing the local economy. Thanks to a great sense of determination, once the first wave of Covid-19 was brought under control, the city established a “new normal” state to focus on implementing political and socio-economic development tasks. Accordingly, the city’s authorities paid special attention to removing difficulties, holding dialogue and supporting investors and enterprises as well as urgently reviewing, slackening and delaying more than VND17.5 trillion of taxes and fees for businesses. In order to rapidly boost economic growth following social distancing, since May, Hanoi has promoted many programmes to stimulate domestic consumption, enhance export supports and remove difficulties for enterprises such as: supply-demand connection conferences, weeks introducing fruits and agricultural product from other provinces and cities in Hanoi, promotional programmes and cultural and tourism stimulus festivals. The events have underlined the capital city’s leading and supporting role in the supply-demand chain among provinces and cities.

The most prominent event was the annual conference entitled “Hanoi 2020 – Investment and Development Cooperation” held in June. Hanoi’s safe and attractive investment environment has attracted 229 projects with a total registered capital of VND405.570 trillion (US$17.6 billion), including 100 domestic, 22 FDI and 107 public investment projects. There were many major projects: the construction of car park and trading centre Aeon Mall Giap Bat in Hoang Mai district with a total area of 6.1 hectares and total investment of over US$280.7 million; the expansion of the Viet Nhat plastic production factory in Thanh Oai district worth a total of VND720 billion. Also at the conference, city leaders and investors signed 38 memoranda of understanding with an expected investment of around US$28.6 billion. The number of investment projects in Hanoi arranged fully or partially via the conference has increased five times with total capital having increased 11 times compared with the 2016 conference. These are impressive numbers in the context of the Covid-19 epidemic outbreak, showing the efforts made by the city’s authorities in mobilising resources to quickly restore the economy and spur growth.

Also thanks to this fast pace, the capital’s economy has witnessed positive changes as many sectors have gradually regained growth momentum. In the first six months of 2020, Hanoi’s gross domestic product (GRDP) is estimated to have increased by 3.39%. That was a high growth rate compared to the rest of the country’s growth. Industrial production establishments have basically returned to normal operation. The industrial production index in July was estimated to have increased by 4.9% compared to previous months and 7.9% over the same period last year. Total estimated retail sales of consumer goods and services in July reached VND51.1 trillion, up 2.5% on the previous month, a year-on-year increase of 7.6%. The capital’s export and import turnover rose by 2.1% in June despite a sharp decline compared to the same period last year. The city’s state budget revenue is estimated to have been VND134 trillion in the first seven months of this year, reaching 51.5% of the ordinance estimate for 2020.

Many measures have been taken to speed up the disbursement of public investment capital as well as major projects. Up to now, investment capital from the state budget has been estimated at VND22.1 trillion, a year-on-year increase of 2.8% and standing at 48.6% of the plan for 2020. The progress of key traffic projects such as the overpass at the Hoang Quoc Viet - Nguyen Van Huyen intersection, low ring road no.3 passing through Linh Dam lake, the completion of ring road no.3 connecting the Hanoi – Hai Phong Expressway and the Yen Xa wastewater treatment system, has also seen progress. Notably, the elevated road between the Mai Dich flyover and the southern end of the Thang Long Bridge, part of Hanoi's ring road no.3 (with a length of 5.5km) is nearly completed after nearly two years of construction and is expected to be put into operation in September. It is seen as a project to celebrate the 1010th anniversary of Thang Long – Hanoi as well as the City’s 17th Party Congress.

The Nga Tu So - Nga Tu Vong road axis, part of elevated Ring Road No.2 from the Nga Tu So intersection to Vinh Tuy bridge, is scheduled to be inaugurated on the occasion of National Independence Day. In July, Hanoi registered 49 FDI projects worth a total of US$35million. The total registered capital of newly licensed and supplemented capital FDI projects reached US$1.632 billion as accumulated from the beginning of the year. Assessing the results that Hanoi city has achieved in recent years, Prime Minister Nguyen Xuan Phuc said that Vietnam in general and Hanoi in particular have many attractive factors for investors in the country and abroad thanks not only to a stable political-social environment but also safety regarding Covid-19 prevention and control as well as a creative and pioneering administration that dares to think and dares to do.

Recognising the difficulties and challenges in the last months of this year, especially as the second wave of Covid-19 epidemic develops, Hanoi’s leaders have built two growth scenarios. Accordingly, the first is that its GRDP reached 5.9% in 2020 (1.3 times higher than the growth scenario of 4.4% - 5.2% of the whole country); meanwhile, under the second scenario, the capital’s GRDP reaches 5.4% for the whole year (1.3 times higher than the growth scenario of 3.6% - 4.4%). Secretary of Hanoi municipal Party Committee Vuong Dinh Hue said that the city will continue to focus on implementing the “dual goal” of both effectively preventing and controlling the epidemic and restoring socio-economic development in the spirit of taking full advantage of districts strengths in order to gain the highest possible results. The city will rapidly put projects receiving approved investment policies into operation to create a new impetus for growth, create jobs and increase incomes for both the people and state budget. With its role and position, Hanoi has always been determined to be the leading line on both fronts; gradually developing and maintaining its leading role in the country’s economy and standing on a par with other major cities in the region.