An aerial view of a corner of Hà Nội, the capital city. VNA/VNS Photo

HÀ NỘI — Amidst a turbulent global economy in 2024, Hà Nội defied expectations by surpassing VNĐ 500 trillion in budget revenue for the first time and achieving 23 out of 24 socio-economic targets, with six exceeding their goals.

Building on this momentum, the city is charting ambitious plans for 2025, aiming to drive even greater growth through strategic initiatives and innovative reforms, according to Trần Sỹ Thanh, Chairman of the capital's People’s Committee.

In 2024, Việt Nam as a whole and its capital Hà Nội faced significant economic challenges amid a turbulent global landscape marked by fierce competition and unpredictability. Despite these difficulties, Hà Nội’s economy surpassed expectations, achieving earlier-than-forecasted results through coordinated and decisive measures across all levels and sectors.

This year stands as a critical milestone, with Hà Nội tackling the most extensive workload of the current Party Congress term. Priorities have included completing institutional frameworks, accelerating public investment, attracting foreign direct investment (FDI), and fostering robust growth in tourism.

International visitors explore tourism information at the 2nd Hà Nội Autumn Festival. VNA/VNS Photo

Hà Nội has also made significant strides in transforming its administrative systems, addressing long-standing concerns over bureaucratic inefficiencies. By pioneering decentralisation and delegation, the city has streamlined governance, setting a benchmark for the rest of Việt Nam.

In terms of technology, Hà Nội is at the forefront of digital transformation, advancing towards its goal of becoming a smart city by 2025, with aspirations to integrate into global smart urban networks by 2030. Digital initiatives are enabling systematic, efficient handling of tasks, reducing delays, and minimising negative practices.

The country and the capital city have also placed a strong emphasis on leadership accountability, requiring responsiveness to external changes while addressing internal issues. Both are committed to strategic breakthroughs, focusing on institutional reform, modern governance, and policy innovation to secure sustainable development and strengthen their economic leadership regionally and globally.

Major milestones amidst breakthrough growth in 2024

The Hà Nội Municipal People’s Committee has prioritised three critical tasks in 2024: drafting and submitting the revised Capital Law to the National Assembly for approval, developing the Hà Nội Planning for 2021–2030 with a vision to 2050, and adjusting the General Capital Planning to 2045 with a vision to 2065. These plans have been reviewed by the Politburo and National Assembly, and documentation has been submitted to the Prime Minister for approval, with decisions expected in the coming days. These initiatives are regarded as the "golden key," guiding Hà Nội’s development trajectory.

Economic Breakthroughs

The Municipal People’s Committee reported significant progress in economic and social development, achieved through decisive leadership and synchronised efforts across all levels. This approach, driven by innovation in thinking and action, has resulted in Hà Nội meeting or exceeding the targets set in its five-year socio-economic development plan for 2021–2025.

For the first time, Hà Nội's budget revenue surpassed VNĐ500 trillion, with 23 out of 24 socio-economic targets achieved, six of which exceeded their goals. This comprehensive success comes despite national challenges, including the impact of Typhoon Yagi.

According to Hà Nội's Statistics Office, total state budget revenue in 2024 is estimated at VNĐ492.3 trillion, reaching 120.5 per cent of the annual forecast, a 19.6 per cent increase compared to the previous year. Domestic revenue accounted for VNĐ461.9 trillion, or 93.8 per cent of the total, marking a 21.2 per cent increase year-on-year. Revenue from production and business activities reached VNĐ188.7 trillion, making up 40.9 per cent of domestic revenue, and increased by 10.6 per cent . Revenue from real estate amounted to VNĐ48.6 trillion, up 129.1 per cent , including VNĐ36.1 trillion from land-use fees, a 140.5 per cent increase.

Packaging tomato sauce products for export to South Korea, Russia, Japan, and Ukraine at the Hùng Thắng production and business household in Minh Hiệp 1 Village, Minh Khai Commune, Hoài Đức District, Hà Nội. VNA/VNS Photo

The Gross Regional Domestic Product (GRDP) for the first nine months of 2024 grew by 6.12 per cent , with an annual projection of 6.52 per cent . Hà Nội’s GRDP scale is estimated at $58.6 billion, with per capita GRDP reaching VNĐ163.5 million.

Trade and Investment

Hà Nội’s export turnover reached $15.47 billion in 2024, a 12.3 per cent year-on-year increase. Import turnover was $33.2 billion, up 9.6 per cent , reversing the decline from the previous year. The domestic economic sector accounted for $27.6 billion, up 10.2 per cent , while the foreign-invested sector reached $5.6 billion, up 6.9 per cent .

Public investment has also been prioritised, focusing on key projects such as the Ring Road 4 and infrastructure in healthcare, cultural heritage, and education. The 2024 public investment plan allocated VNĐ81 trillion, 1.72 times higher than 2023, with VNĐ37 trillion disbursed by mid-November, achieving 48.1 per cent of the forecast.

Tourism Growth

Tourism continues to play a pivotal role in Hà Nội’s economy, with significant contributions to budget revenue. Visitor numbers have risen sharply, driven by innovative offerings such as night tours, which have been well-received by domestic and international tourists alike.

In 2024, Hà Nội’s tourism sector is projected to attract over 27 million visitors, a 9.2 per cent increase compared to 2023. This includes more than 5.5 million international tourists, of whom 3.8 million are expected to stay overnight, marking a 16.4 per cent rise year-on-year. Domestic visitors are anticipated to exceed 21.5 million, an increase of 7.5 per cent . Total revenue from tourism is estimated to surpass VNĐ109.41 trillion, reflecting a 28.2 per cent increase compared to the previous year.

The city has prioritised attracting investment by creating favourable conditions and streamlined mechanisms to encourage both domestic and international enterprises. Hà Nội aims to secure over $2 billion in investment in 2024, meeting its annual target.

Scenarios

Despite exceeding many expectations in 2024, Hà Nội acknowledges certain limitations in its economic development, including one unmet socio-economic target. To address these challenges, the city is conducting a comprehensive review to identify solutions and accelerate progress in 2025.

It has set the theme for the year as "Discipline, Responsibility, Action, Innovation, and Development," with key growth targets based on five scenarios ranging from 6 per cent to 8 per cent .

The first growth scenario assumes continued global uncertainties and domestic conditions similar to 2024, with no significant changes in growth inputs. Under this scenario, Hà Nội forecasts GRDP growth of 6–6.5 per cent , with per capita GRDP projected to reach VNĐ171.5–172.4 million.

Nhật Tân Bridge in Hà Nội. VNA/VNS Photo

The baseline scenario envisions global and regional conditions remaining stable, with administrative reforms and organisational restructuring delivering rapid and effective results. While domestic growth drivers are expected to be strengthened, their contributions to growth will require time to take full effect.

Investment projects will undergo thorough review, with challenges gradually resolved to enable businesses to recover and grow by the second quarter of 2025. GRDP growth under this scenario is projected at 6.5–7.5 per cent , with per capita GRDP reaching VNĐ172.4–174 million. If growth in both 2024 and 2025 reaches 6.5 per cent , the five-year average GRDP growth rate for 2021–2025 will stand at 6.27 per cent .

In the high-growth scenario, it is assumed that global and regional conditions will stabilise and become highly favourable, enabling Hà Nội’s GRDP to grow by over 8 per cent , with per capita GRDP exceeding VNĐ175 million. Under this scenario, if growth in 2024 reaches 6.5 per cent and 2025 achieves 8 per cent , the five-year average GRDP growth rate for 2021–2025 would stand at 6.56 per cent .

A scenic view of West Lake Urban Area.VNA/VNS Photo

After careful analysis, Hà Nội has chosen the baseline scenario as its plan. This sets the GRDP growth target for 2025 at 6.5 per cent or higher, with per capita GRDP reaching at least VNĐ172.4 million. It also anticipates social investment capital increasing by 10.5 per cent or more, export turnover rising by at least 5 per cent , inflation remaining below 4.5 per cent , and eliminating poverty entirely by the end of 2025.

However, under this plan, four socio-economic targets for the 2021–2025 period may remain unmet.

Entering 2025, Hà Nội has proposed dozens of solutions and initiatives, focusing on economic development to achieve the highest possible growth, control inflation, and maintain the city’s overall economic balance.

Key strategies include revitalising traditional growth drivers and accelerating digital transformation comprehensively and deeply. This involves developing a robust digital infrastructure and framework, as well as advancing green transformation in key sectors such as energy, transport, tourism, services, and agriculture.

The city also plans to implement targeted policies and mechanisms to support and attract investment in emerging industries and high-tech fields, including semiconductor chips, artificial intelligence, and the Internet of Things. Urban economic development and regional integration will be prioritised, with Hà Nội playing a more active role as a member of the Red River Delta Coordination Committee. VNS