Hanoi targets GRDP growth up to 7.5% in 2021

Hanoi will take advantage of a shift in investment capital worldwide to attract foreign direct investment into the city.

Given the serious Covid-19 situation, the Hanoi People’s Committee has set up three growth scenarios with the gross regional domestic product (GRDP) growth of 7.5% in the most optimistic case.

Production at Meiko Vietnam. Photo: Thanh Hai

“Hanoi identifies the utmost priority would be to fight the pandemic, which would eventually lead to the successful realization of the twin goal of both containing Covid-19 and boosting growth,” said the Chairman of the municipal People’s Committee Chu Ngoc Anh.

In the most optimistic scenario, Hanoi expected an economic growth of 7.5% for the whole year, which came from a growth rate of 8.59% in the third quarter and 9.12% in the subsequent one.

In worse situations, Hanoi predicted a GRDP growth of 6.85% when the pandemic is under control within July, and 6.12% if the Covid-19 persists until the third quarter.

To achieve the highest growth rate possible, the local authorities plan to mobilize resources to contain the pandemic while looking for opportunities to restructure economic activities to overcome difficulties and boost growth.

According to the economic plan, Hanoi would take advantage of a shift in investment capital worldwide to attract foreign direct investment (FDI) into the city, while promoting the formation of value chains in domestic and foreign markets.

Vice-Chairman of the Hanoi People’s Committee Ha Minh Hai noted in 2021, Hanoi aims to improve the business environment by keeping the 100% rate of online business registration, making 100% of administrative procedures available online at advanced stages of 3 and 4, and returning 50% of results via post.

Hai informed the Hanoi Department of Planning and Investment that is planning for the organization of a conference addressing businesses’ concerns amid the Covid-19 pandemic.

In the first six months of 2021, Hanoi attracted FDI inflows of over US$694 million, including 171 fresh projects worth a combined of $96 million and $477 million in 78 existing ones.