Despite achieving relatively high growth in the first half of this year, GDP growth in Hanoi seemed to slow down in the third quarter. Meanwhile HCM City’s GDP reached 10.3% in the third quarter, driving its nine month rate up to 8.7%.
Thus, the two major economic hubs nearly fulfilled their set targets (8-8.5% for Hanoi and 9.5%-10% for HCM City).
According to HCM City’s Statistics Office, in the first half of this year, the city faced a number of challenges due to stagnant real estate market, price hikes for input materials, businesses still feeling hesitant to borrow capital in spite of falling interest rates. However, all these issues have been dealt with in the third quarter of this year.
Industrial production shows positive signs. Hanoi’s industrial production value in September increased by 8.3% from a month earlier and by 7.6%on last year’s same period. . Meanwhile the HCM City’s figure stood at 6%.
In the reviewed period, around 11,410 businesses in Hanoi applied for investment licences with registered capital of VND63,000 billion, down 8.8% in volume and up 8.2% in capital against last year. HCM City’ figure was 18,795 new businesses with registered capital of VND85,243 billion, up 7% in volume and down nearly 50% in capital.
For foreign trade and foreign direct investment (FDI) attraction, the southern city’s trade surplus hit more than US$1 billion while the capital’s trade deficit reached more than US$9.8 billion. HCM City attracted more than US$1.2 billion in FDI capital while that of Hanoi was US$770 million.