Traffic in Hanoi. The city’s GRDP increased 7.61 percent, the highest in the last three years, and exports grew 21.6 percent in 2018 (Source: VNA)
The Hanoi People’s Committee has set 22 targets for socio-economic development in 2019, focusing on State budget restructuring, improvement of its investment and business environment and promotion of the innovation and startup ecosystem.
The capital city’s gross regional domestic product (GRDP) is expected to reach 7.4-7.6 percent in 2019 and export growth is projected at 7.5-8 percent.
These targets are set in the city’s action programme No 12/Ctr-UBND on the socio-economic development and State budget estimation in 2019, signed recently by Chairman of the municipal People’s Committee Nguyen Duc Chung.
In 2018, the capital city accomplished all 20 socio-economic development targets. Its GRDP increased 7.61 percent, highest in the last three years, and export grew 21.6 percent, much higher than its initial target of 7.5-8 percent. The city’s attraction of foreign investment topped the country for the first time after more than 30 years, expected at 5.6 billion USD.
According to the programme, this year is a turning point to complete the five-year plan for 2016-2020. This has great importance in the context of complicated and unpredictable developments in the region and the world.
Hanoi’s exports may be affected by protectionist trade and exchange rate policies by some countries, especially the Chinese renminbi could be deeply devalued due to the US-China trade war.
Foreign capital inflows into the city may also be impinged by the adjustment of US tax policy. Besides, unpredictable movements of global oil prices will significantly affect the prices of domestic commodities.
The report also said the 10-year cycle of economic crises, though not expected now, should be regularly monitored to ensure a timely response. The fast-moving Fourth Industrial Revolution (Industry 4.0) brings both opportunities and challenges.
In the country, productivity, efficiency and competitiveness of the economy are not high which may create disadvantages for domestic enterprises competing with foreign partners.
However, besides challenges, the domestic economy is expected to maintain its high growth while Vietnam’s participation in new-generation trade agreements such as the CPTPP and EU-Vietnam Free Trade Agreement (EVFTA) will be an important factor to promote the country’s trade and investment.
The programme focuses on nine tasks and solutions. Among them is the priority to improve the quality of the city’s investment and business environment, encourage and promote innovation and startups will also be more practical.
Enterprises in the city will be developed in both quantity and quality.
The city will continue its economic restructuring in association with a changing growth model and improving productivity, efficiency and competitiveness.
The programme emphasises the task of restructuring the State budget, focusing on efficient tax collection, fight revenue losses, especially having measures to collect tax arrears, detect and handle price transfer actions, and closely monitor movements on the forex market to ensure the implementation of business and import-export plans.
Other priorities include urban planning and development, application of information technology in administration and management, stepping up administrative reform, downsising payrolls, drastic anti-corruption and wastefulness, development of education, healthcare services and culture, ensuring national defence and social order, as well as improving the efficiency of foreign affairs and international integration./.