Industry and Trade Sector: Key Role in Hanoi’s Economic Growth

9:39:51 AM | 26/3/2024

The industry and trade sector of Hanoi has made efforts to advise and implement many effective solutions to operational management; strengthen investment promotion, support production and business and work side by side with businesses to address difficulties. Hence, the sector has proven its pivotal role in economic development and social security in Hanoi, the capital city of Vietnam.

Delegates undertake an exploratory visit to Hanoi’s exhibition of OCOP (One Commune One Product) commodities

Positive contributions to economic development

At a conference on activities in 2023 and 2024 of the Hanoi Department of Industry and Trade, Acting Director Tran Thi Phuong Lan said: In 2023, the department deployed the work plan of the city and the sector amid volatile, difficult and challenging global and domestic economic situations. However, with focused direction and timely and drastic actions, the city achieved optimistic industrial production and business activities which made important contributions to the city’s and the country’s socioeconomic development.

At the same time, commercial activities also developed strongly and commercial infrastructure was focused for investment. Hanoi City attracted large-scale commercial infrastructure investment and business projects. Import and export activities and logistics services grew rapidly to affirm Hanoi’s position as a major highly competitive industrial and commercial center of the country.

Total retail revenue of consumer goods and services in 2023 reached VND776.1 trillion (US$33.3 billion), up 10.4% year on year. Total import and export value was estimated at US$54.4 billion. In particular, despite being negatively affected by most major import and export markets, Hanoi’s industrial and commercial production still grew well. The added industrial value in 2023 rose by 4.57% to contribute 0.64% to the city’s GRDP growth of 6.27%.

In 2024, the industry and trade sector targeted to achieve the industrial growth of 7-7.5%, export growth 4-5% and retail growth of consumer goods and services of 10-11%. In February 2024 alone, the city’s export value was forecast to rise 11.5% year on year to US$1,423 million. Highly growing exports included machinery, equipment and spare parts (18.3%), textile and garment (10.9%), transport vehicles and parts (36.7%), gasoline (31.8%), agricultural products (97.1%), timber and wood products (42.4%). The robust growth provided an important premise for the sector to complete its growth target in 2024 and contribute to the city’s socioeconomic development.

Accompanying business

As a capital city, an administrative and political center, Hanoi always has high economic growth and affirms its leadership in the country.

Speaking at the conference on working activities of the industry and trade sector in 2024 hosted by the Hanoi Department of Industry and Trade, Mr. Nguyen Manh Quyen, Vice Chairman of Hanoi People's Committee, emphasized: From now to 2035 - 2040, Hanoi must accelerate to lead industrial production and promote the development of trade, services and tourism.

In particular, to promote handicraft development, focusing on craft villages, and speed up the completion of high-tech industrial zones, in addition to fully occupied 10 industrial parks, Hanoi planned to invest in 15 industrial parks, bringing total industrial parks to 25. Hanoi will build industrial parks along the radial axis and ring roads to create a development space for investment projects.

Supporting businesses and investors, Ms. Tran Thi Phuong Lan, Acting Director of the Hanoi Department of Industry and Trade, said: In the coming time, in addition to carrying out effective management solutions, the department will actively advise and support businesses to boost production, diversify import and export markets, grasp opportunities from free trade agreements (FTA), and promote and introduce One Commune One Product (OCOP) items.

Industrially, the department will focus on upgrading industrial zone infrastructure and starting construction on planned industrial zones. The agency will concentrate on providing solutions to ensure adequate electricity supply for production, business and people's daily life.

Commercially, the department will speed up the recovery and development of commercial services, supply chains, input supply sources and distribution channels in the city; expand the purchasing power of the domestic market together with the “Buy Vietnamese” Program which encourages Vietnamese consumers to give priority to buying Vietnamese goods on their shopping list; and plan logistics development to 2025.

The city will continue to attract investment capital for all types of commerce in line with planning, with emphasis on planned investment, repair and renovation of traditional markets. Hanoi will support and help distributors to develop commercial business networks; adopt modern trade; and develop more locations to introduce and sell OCOP products in the capital city.

The city will continue to support businesses to expand markets and promote sustainable export growth; assist businesses in digital transformation; choose to develop highly competitive industries capably joining global value chains; connect and support supporting industrial companies to become product suppliers for domestic and foreign customers.

At the same time, Hanoi will effectively deploy e-commerce to speed up digital economic growth; ensure good food safety in the industry and trade sector, especially in traditional markets; assist businesses, rural industrial facilities and craft villages to adopt official exports to achieve sustainable growth.

Additionally, to help improve the business environment and enhance competitiveness, the sector will also speed up administrative reform; and further review, assess and propose plans to simplify procedures and reduce the time of settling administrative procedures relating to investment, business and power access to attract more investors.

By Thu Ha, Vietnam Business Forum