Capital seeks ways to boost socio-economic development amidst COVID-19 outbreak

The meeting targets to figure out measures and solutions to boost socio-economic development and state budget in 2020 in the context of the novel coronavirus (COVID-19) outbreak

Chairman Chung stressed the importance of implementing the Government’s Resolution 01/NQ-CP, dated January 1, 2020 on measures and solutions to materialize socio-economic development plans and state budget estimate for 2020 and the Government’s Resolution 02/NQ-CT on ways and measures to perfect the business environment and raise national competitiveness; Action program 07/CTr-UBND, dated January 9, 2020 on measures and solutions to develop socio-economic development and state budget before 2020. 

Mr. Chung tasked his inferiors to figure out specific measures for every sector especially agriculture, garments and textiles, service and tourism as the domestic economy would cope with a risk of lagging behind. 

Director of the Ha Noi Planning and Investment Department Nguyen Manh Quyen quoted comments of international experts on negative impacts of COVID-19 on Chinese and global markets which could result in a rise of 3-4 times in losses in comparison with SARS outbreak. 

Director Duyen said that in February, production and business activities were influenced by COVID-19 outbreak and Decree 100/2019/ND-CP on administrative penalties for road offences and rail transport offences. 

Specifically, industrial production index increased by 5.8% (lower than the year-on-year growth rate of 6.1%). Some industrial products experienced sharp declines including beverage and wine (down 23.2%); footwear and shoes (down 5.5%); plastic products (down 12.5%). 

Export turnover saw a year-on-year decline of 19%. Import turnover decreased by 20.7%.

The number of foreign arrivals dropped sharply including those from China (down 60%); Malaysia (down 34.9%); Singapore (down 19.6%); Thailand (down 12.3%). 

The number of domestic guests also faced a year-on-year decline of 21.2 %.

In February, six out of 11 commodities experienced price declines including transport (down 2.24%); culture, entertainment, and tourism (down 1.58%); housing, electricity, water, fuel, building materials (down 0.24%); garments, hats, footwear (down 0.19%), beverage and tobacco (down 0.11%); post and telecom (down 0.13%).

According to experts, Ha Noi’s agricultural sector was modestly affected by COVID-19 outbreak. However, a series of exports which rely on imported materials from China, the RoK, and Japan would be seriously affected such as garments and textiles, footwear, electronics, telephones, transport vehicles, and furniture.  

Chairman Chung said that even though the COVID-19 outbreak has negatively impacted on tourism and trade, the city would be able to make full use of the EU-Viet Nam Free Trade Agreement (EVFTA) and boost e-commerce. 

Chairman Chung highlighted the importance of disseminating the outbreak; raising people’s awareness of self-protection; and preventing cross infection; perfecting administrative procedures and improving the business and investment environment./.

By Kim Loan