Good sign: A street vendor walks along West Lake in Hanoi. — AFP
HANOI: As Hanoi celebrates the 70th anniversary of its liberation this month, the city stands at a pivotal juncture, ready to embrace a future defined by green, innovative and sustainable economic growth.
This vision reflects not only the aspirations of the capital but also aligns with global trends towards sustainable development, positioning Hanoi as a leader in addressing modern economic and environmental challenges.
Since its liberation on Oct 10, 1954, Hanoi has undergone an impressive transformation.
From a war-torn city of around 430,000 inhabitants, it has grown into a vibrant metropolis, now the second-largest urban area in the country after Ho Chi Minh City, with an estimated population of nearly 10 million people.
According to the Hanoi Statistics Office, the city’s gross regional domestic product (GRDP) witnessed an average annual growth of 6.67% between 2011 and 2023, surpassing the national average during this period.
In the first half of 2024, the GRDP was estimated to have grown by 6%.
The industrial and construction sectors account for about 16% of the city’s total output, progressing in high-tech areas such as automation and biotechnology.
Infrastructure development remains a priority in Hanoi, with projects like Ring Road 4, Phap Van-Cau Gie Highway and Thang Long Boulevard enhancing regional connectivity and economic growth.
This infrastructure positions Hanoi as a vital hub for industrial development and foreign investment.
Hanoi has long been one of Vietnam’s top five localities for foreign direct investment.
Over 4,500 foreign-invested projects have been launched in the city, with registered capital exceeding US$33bil.
These businesses contribute 10% of the city’s budget revenue and employ 11% of its workforce. From 2011 to 2023, Hanoi’s exports grew at an average annual rate of 4.57%, representing nearly 9% of Vietnam’s total trade in 2023 and ranking eighth nationwide.
Tourism is also a key sector, with the city welcoming 24 million visitors in 2023 including four million international tourists. By August 2024, international arrivals had increased by 42% year-on-year.
Despite accounting for just 1% of Vietnam’s land and housing 8.5% of its population, Hanoi contributes 16% of the country’s gross domestic product, 18.5% of its budget revenue, and 20% of its domestic income, underscoring its central role in both the Red River Delta and the nation as a whole.
As Vietnam moves towards sustainable growth, science, technology, and innovation have become critical components of its development strategy.
The Hoa Lac Hi-Tech Park has attracted over 300 investment projects worth US$8bil.
The city has also pioneered smart city initiatives, integrating artificial intelligence, big data and the Internet of Things into urban management, transportation, and healthcare systems, thereby enhancing its competitiveness.
According to Science and Technology Deputy Minister Hoang Minh, Vietnam’s economic growth increasingly relies on technological applications and innovation rather than the exploitation of natural resources. This shift is essential for boosting productivity and enhancing the competitiveness of domestic enterprises.
To renew its economic engine, Hanoi has laid out a comprehensive roadmap.
The city’s development goals, as outlined by a resolution issued in May 2022, include achieving a GRDP growth rate of 8% to 8.5% annually from 2026 to 2030 and raising per capita GRDP to US$12,000 to US$13,000 by 2030.
By 2045, Hanoi aims for per capita GRDP to exceed US$36,000.
To solidify its role as Vietnam’s political, economic, and cultural hub, Hanoi is implementing the Capital Law 2024.
Experts suggest the city should leverage this law and supportive policies to unlock its full potential for economic and social growth.
According to Le Hong Son, vice-chairman of the Hanoi People’s Committee, Hanoi is home to over 70% of the country’s scientific organisations and 82% of its laboratories, providing a strong foundation for innovation. The amended Capital Law aims to resolve obstacles and support the development of high-tech zones, innovation centres and advanced business models, while enabling the establishment of enterprises from public scientific organisations.
“Additionally, the law will introduce a controlled experimental mechanism (sandbox) to facilitate rapid access to new technologies and promote startups,” Son said.
A key element of Hanoi’s strategy is the development of the digital and green economies. The city’s digital transformation programme, set to run until 2030, aims to position Hanoi as the nation’s innovation hub, with the digital economy contributing over 40% of the city’s GRDP. — Viet Nam News/ANN
