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) Hanoi (VNA) - The Hanoi People’s Committee has set 22 targets forsocio-economic development in 2019, focusing on State budget restructuring,improvement of its investment and business environment and promotion of theinnovation 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 isprojected at 7.5-8 percent.
These targets are set in the city’s actionprogramme No 12/Ctr-UBND on the socio-economic development and State budgetestimation in 2019, signed recently by Chairman of the municipal People’sCommittee Nguyen Duc Chung.
In 2018, the capital city accomplished all 20socio-economic development targets. Its GRDP increased 7.61 percent, highest inthe last three years, and export grew 21.6 percent, much higher than its initialtarget of 7.5-8 percent. The city’s attraction of foreign investment topped thecountry for the first time after more than 30 years, expected at 5.6 billionUSD.
According to the programme, this year is a turningpoint to complete the five-year plan for 2016-2020. This has great importancein the context of complicated and unpredictable developments in the region andthe world.
Hanoi’s exports may be affected by protectionisttrade and exchange rate policies by some countries, especially the Chineserenminbi could be deeply devalued due to the US-China trade war.
Foreign capital inflows into the city may also beimpinged by the adjustment of US tax policy. Besides, unpredictable movementsof global oil prices will significantly affect the prices of domesticcommodities.
The report also said the 10-year cycle of economiccrises, though not expected now, should be regularly monitored to ensure atimely response. The fast-moving Fourth Industrial Revolution (Industry 4.0)brings both opportunities and challenges.
In the country, productivity, efficiency andcompetitiveness of the economy are not high which may create disadvantages fordomestic enterprises competing with foreign partners.
However, besides challenges, the domestic economyis expected to maintain its high growth while Vietnam’s participation innew-generation trade agreements such as the CPTPP and EU-Vietnam Free TradeAgreement (EVFTA) will be an important factor to promote the country’s trade andinvestment.
The programme focuses on nine tasks and solutions.Among them is the priority to improve the quality of the city’s investment andbusiness environment, encourage and promote innovation and startups will alsobe more practical.
Enterprises in the city will be developed in bothquantity and quality.
The city will continue its economic restructuringin association with a changing growth model and improving productivity,efficiency and competitiveness.
The programme emphasises the task of restructuringthe State budget, focusing on efficient tax collection, fight revenue losses,especially having measures to collect tax arrears, detect and handle pricetransfer actions, and closely monitor movements on the forex market to ensurethe implementation of business and import-export plans.
Other priorities include urban planning anddevelopment, application of information technology in administration andmanagement, stepping up administrative reform, downsising payrolls, drasticanti-corruption and wastefulness, development of education, healthcare servicesand culture, ensuring national defence and social order, as well as improvingthe efficiency of foreign affairs and international integration.-VNA
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