Hanoi Gains High Growth Rate in First Half
Hanoi’s gross domestic product (GDP) in the first six months of this year is estimated to increase by 9.6 per cent against the previous year. This is according to a report on the capital city’s socio-economic situation by Nguyen Quoc Trieu, chairman of the Hanoi People’s Committee. The city’s production value continued to increase in all local economic sectors and industries. Its export value increased by 9.6 per cent compared with the same period last year. This success is attributable to the 12.5 per cent increase in local export turnover. Passenger and cargo transportation services also saw a rapid development with an increase of 17.8 per cent in cargo and 63.7 per cent in passengers.
Despite changes in mechanisms and policies, the city’s budget revenue reached VND11,600 billion (US$738.853 million), equal to 50.6 per cent of the yearly estimates and up 26.1 per cent against that of the same period last year. This was driven by an increase of 27.8 per cent in domestic revenues and 15.6 per cent in customs revenues. Some items that also saw a high increase in revenues include the foreign-invested sector (37.7 per cent), industrial and trade tax (36.8 per cent), registration fees (69.4 per cent) and additional budget revenues from auctioning land use rights (more than VND1,000 billion or US$63.694 million).
Meanwhile, budget expenditures stood at VND2,224 billion (US$141.656 million), up by 47.3 per cent. The city ensured investment capital sources for capital construction and expenditures on socio-cultural activities, poverty reduction and other urgent social issues. The decentralisation of management agencies has created great momentum in implementing budget revenue and expenditure tasks, following the targets set by the city’s People’s Council.
However, despite these achievements, the city admitted that its first half GDP saw a slower increase in comparison with the previous year. The production value of some industries saw a sharper drop against the same period last year. Furthermore, the equitisation of State-owned enterprises remained slower than requested while the granting of land use rights and housing ownership certificates in urban areas under Decree 60/CP has reached only 35.2 per cent of the yearly plan.
The tasks of the city in the final six months will include the maintenance of political security and social order. The city will also strive to complete all socio-economic development targets for 2004, helping enterprises expand their activities and promote exports. The city will promote the reorganisation, effectiveness and competitiveness of State-owned enterprises in order to solve urgent social issues. At the same time, the city will increase its economic effectiveness and improve the social environment, with a focus on the implementation of administrative reform projects. A ceremony to mark the 50th anniversary of the capital city’s liberation and other major events to maintain the glorious tradition of the heroic capital city will be organised, creating a new driving force for socio-economic development. Hanoi will also host the fifth ASEM, which will further concretise its role as a leading Asian city.
Targets for the final six months of 2004
- A GDP increase of 11 per cent against that of the same period last year
- An increase of 15-16 per cent in industrial production value
- An increase of between 10.5 and 11.5 per cent in service value
- An increase of between 3.5 and 4 per cent in the production value of agriculture, forestry and fisheries
- An increase of between 11.5 and 12 per cent in export turnover
- A rise of 11 per cent in total investment capital for the whole society
- The creation of 40,000 to 45,000 jobs
- A reduction of 2,500 poor households
- Six thousand six hundred concentrated rehabilitation places for drug addicts
- A reduction of malnourished children to 15 per cent
- An increase of 40,000 cubic metres per day in volume of safe water
- Five hundred and twenty thousand square metres of newly built houses.
Vietnamese
