Hanoi commits to bold 2024 agenda prioritising economic revival

A view of Hoan Kiem (Sword) Lake, an iconic landmark of Hanoi. - VNA/VNS

HANOI: Vietnam’s capital city sets out an agenda centred on economic revival, infrastructure advancement and pioneering growth for 2024.

Despite its challenges, Hanoi’s administration revealed a plan designed to establish a modernised industrial hub.

In 2023, Hanoi faced headwinds with four out of 23 targets predicted to miss the mark.

Gross regional domestic product (GRDP) is expected to grow by 6.11% (against a 7% plan), realised investment capital’s estimated increase at 9% (10.5% target), export turnover growth rate forecast at 1% (6% plan) and industrial clusters’ wastewater treatment meeting standards at 95% (100% goal).The City People’s Committee maintained sustained economic growth but at a lower level than the previous period, attributed to the enduring impact of the Covid-19 pandemic.

This included a decline in domestic and foreign consumer demand, reduced export-import turnover, and the industrial, construction and service sectors failing to meet their targets.

While social investment capital increased by 9%, it fell short of the 10.5% target, primarily due to the domestic and world economic slowdown.

Other challenges stem from a stagnant investment and business environment, evident in downgraded Provincial Competitiveness Index and Public Administration Performance Index scores.

Credit institutions’ loan balance rose slightly but did not meet the set target, coupled with unexpected shortfalls in the 2% interest rate support policy from the state budget.

Pressures persist in mechanisms, policies and administration at all government levels, affecting production and business support.

The survey revealed challenges for small and medium enterprises in accessing state loans, with 79.44% citing the inability to borrow capital without collateral, 58.72% facing unfavourable credit conditions and 58.63% finding loan procedures overly complicated.

Public investment capital disbursement reached 60.8%, exceeding the same period in 2022, but falling short of the target due to issues in site clearance, determination of land origin and valuation, and inadequate investment preparation.

Other challenges in 2023 included raw material price fluctuations, supply chain disruptions, problems in official development assistance-funded projects and slow approval of investment and policy adjustments.

The slow completion of investment procedures, especially in monument-related projects, affected revenue from land use rights auctions.

Management challenges saw delays in urban development and environmental protection projects, lagging behind schedules due to planning at national, regional and provincial levels.

Hanoi People’s Committee vice-chairman Ha Minh Hai said that long-term development documents for the capital would be issued to guide resource exploitation and implementation.

Several projects from the Medium-term Public Investment Plan (2021 to 2025) had been expedited, addressing long-standing bottlenecks, particularly off-budget capital projects using land.

An improved investment and business environment would serve as a catalyst for recovery and socio-economic development.

In 2024, Hanoi aims to sustain growth while controlling inflation, ensuring economic balance, according to the official. The city will foster positive changes by implementing breakthroughs, restructuring the economy, fostering innovation, and enhancing productivity, quality, efficiency, competitiveness and intrinsic capacity.

Administrative reform, digital transformation and streamlined organisational structures are pivotal.

Focus areas include enhancing the investment and business environment, removing bottlenecks, promoting production, improving rankings in various indices, and fostering comprehensive development in culture, education and health.

The 2024 Socio-Economic Development Plan targets key indicators such as a 6.5% to 7% increase in GRDP, GRDP per person of about 160 million dong to 162 million dong, realised investment capital growth of 10.5% to 11.5% and a 4% to 5% rise in export turnover.

To achieve these goals, the City People’s Committee remains committed to key tasks and solutions, striving for growth, inflation control and overall economic balance.

Additionally, Hanoi focuses on the effective implementation of central monetary and fiscal policies, deploying policies on interest rates and credit to support businesses and priority areas.

The city deployed a credit package of 120 trillion dong for various projects and an additional 900 billion dong through the Hanoi Bank for Social Policies Branch to enhance the social security system.

Nguyen Anh Duong, director of Hanoi Trade, Tourism and Investment Promotion Centre, stressed the importance of trade promotion and market expansion. — Viet Nam News/ANN

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