Capital's economy on the rise

Thursday, 2019-10-10 18:04:33
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Customers at Big C Thang Long supermarket.
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NDO – In nine months of 2019, the world and regional situation saw complications but thanks to synchronous implementation of tasks and solutions, Hanoi's economy still achieved positive development steps. Gross regional domestic product (GRDP) increased by 7.35% over the same period last year. This result has no small contribution of the capital industry and trade.

Industry recovered

According to Le Hong Thang, Director of Hanoi Industry and Trade Department, in 2019, Hanoi city targets to increase the industry's added value by 8.6 to 8.8% over the previous year; export turnover increased from 7.5% to 8%; and total retail sales and service revenue increased by 9% to 10%. In order to meet and exceed these targets, in the first months of the year, the Hanoi Industry and Trade Department tried to implement synchronous solutions in all sectors of industry such as industry, handicrafts, trade, export, and energy management.

Along with the national trend, Hanoi's industry is gradually shifting towards developing high added value and export value industries. In particular, the manufacturing industry continues to play a leading role. Although in the first few months of 2019, the industry experienced a lower growth rate than that of the same period last year, but there was a strong recovery in the second and third quarters. Generally, in the first nine months of 2019, the added value of industry increased by 8.01% (higher than the increase of 7.72% of the same period in 2018), contributing 1.66 percentage points to the 7.35% increase of GRDP. The index of industrial production (IIP) has recovered strongly over each quarter, currently reaching an increase of 7.8% compared to the same period last year.

In order to achieve this recovery, the Hanoi Industry and Trade Department has actively implemented development programmes such as the Supporting Industry Development Programme in Hanoi during the period of 2019-2020; Developing key industrial products. The department has also organised an exhibition of supporting and manufacturing technology in Hanoi in 2019 at Hanoi International Exhibition Centre (I.C.E). At the same time, the department has worked with the management board of industrial zones and export processing zones in the area to provide information for typical businesses to participate in the programme of selecting key industrial products in Hanoi in 2019. Up to now, 30 enterprises with 39 products have registered to participate in the programme. The department has also organised training courses with many important contents such as: Digitizing enterprises' activities to approach Industry 4.0; accessing to international management standards (ISO and 5s process); training on matching - online; and modern corporate governance methods in industrial clusters.

In 2019, Hanoi has established three more industrial clusters including Di Nau Industrial Cluster, Chang Son Industrial Cluster - phase 2 at Thach That district, Cau Bau Industrial Cluster - phase 2 at Ung Hoa district. At the same time, the city is continuing to consider the decision to establish 20 other industrial clusters as part of the plan. The city’s industry and trade sector will continue to overcome difficulties, attract businesses into these industrial clusters; deploy the programme to support investment in technical infrastructure of industrial clusters in Hanoi in the period of 2020 - 2025 and draft the programme of supporting investment in technical infrastructure of industrial clusters in Hanoi city in the period of 2020 – 2025.

In 2019, Hanoi continues to recognise the title of "Hanoi traditional trade village" for three trade villages and approve the list of trade villages and the content of support programme for branding of trade villages. Over the past nine months, Hanoi has opened 36 handicraft transferring classes, 17 training courses to improve the management capacity for rural industrial production establishments and implemented the project on equipment support; and application of modern and advanced technology to production at rural industrial establishments. That contributes to promote accessing to domestic and foreign markets. In 2019, Hanoi has promoted the support to promote and introduce handicraft village products at fairs, exhibitions and trade promotion activities at home and abroad. Currently, the Hanoi Industry and Trade Department is actively deploying the organisation of the Hanoi Gift Show 2019, the design contest for Hanoi handicraft products in 2019.

Trade development towards modernisation

Trading and service activities in Hanoi in the past nine months continued to increase, the purchasing power of consumers continued to rise. The added value of the service sector increased by 6.72% over the same period in 2018, contributing 4.64 percentage points to the increase of 7.35% of GRDP. the total retail sales of consumer goods and services in nine months of 2019 reached nearly VND 2,036 billion, up 10.7% over the same period in 2018.

Trade infrastructure in Hanoi continues to be modernized and developed in both number and quality. Up to now, there have been 25 shopping centres, 141 supermarkets and about 1,400 convenience stores, and 455 markets. Of which, the system of convenience stores, mini-supermarkets and foodstuff chains is developed to creating convenience for consumers in gradually forming a new commercial civilization.

Notably, in order to keep up with the development of the digital age, the Hanoi’s industry and trade sector has implemented many solutions to develop e-commerce, encouraging new forms of procurement and payment as continuing to operate the website "Hanoi Shopping Map" at, providing online search solutions for shopping, consumer and culinary. Promoting the application of information technology in e-commerce activities has gradually brought online shopping to become a popular purchase form for people, especially for young consumers. For five consecutive years, Hanoi is one of the two leading localities in the country in Vietnam E-commerce Index, just behind Ho Chi Minh City. Along with its e-commerce platform, the city is also actively deploying solutions to develop cashless payments and a vending machine network.

With its role and position, from the beginning of the year, Hanoi city has actively implemented the project on Domestic Market Development, associated with the campaign "Vietnamese prefer Vietnamese products". The city continues to coordinate with provinces, cities and units throughout the country to deploy activities of promoting consumption of local agricultural products in Hanoi market and introducing Hanoi's products everywhere. Thanks to the exploitation of goods sources, regional links from production to distribution, the supply of goods for the Hanoi market has become richer, more diverse and more competitive.

According to Le Hong Thang, Director of Hanoi Department of Industry and Trade, in the coming time, Hanoi’s industry and trade sector will continue to strongly implement the tasks, plans, strive to achieve and exceed the set targets. For the industry sector, the city will continue to perfect and put into operation industrial parks and clusters. At the same time, the city will continue to implement solutions to restructure industry, develop industrial production in depth, promote technological innovation, improve production processes, actively participate and take advantage of results of the Industry 4.0 to improve labour productivity, develop new advantageous industries, gradually create products with national brands and competitiveness in the regional market and the world, to be more deeply involved in global value chains.

Hanoi also will strengthen trade promotion activities, implement solutions to expand the market, develop and exploit both traditional and potential markets for highly competitive and valuable products, high added value or product groups with a large proportion of export turnover.