What do we see from the picture of economic growth in the first quarter of 5 cities directly under the Central Government

In a general assessment of the socio-economic situation in the first quarter, Ms Nguyen Thi Huong, General Director of the General Statistics Office, said that in the first quarter of 2023, the world economy continued to have many complicated fluctuations and irregularities; global inflation, although it has cooled down, remained high; slow recovery and decline in consumption demand of major trading partners; world energy prices soar; long-lasting Russian-Ukrainian war. However, Vietnam’s economy has achieved positive results. Gross domestic product (GDP) in the first quarter of 2023 increased by 3.32% over the same period last year, of which the agriculture, forestry and fishery sector increased by 2.52%, contributing 8.85% to the general growth; the industry and construction sector decreased by 0.4%, reducing by 4.76%; the service sector increased by 6.79%, contributing 95.91%.

Gross domestic product in provinces and municipal cities (GRDP) over the same period last year increased in 58 localities and decreased in 5 localities across the country. Many localities recorded a higher growth rate of GRDP than GDP, such as Hau Giang increased by 12.67%; Binh Thuan increased by 9.86%; Hai Phong increased by 9.65%; Khanh Hoa increased by 9.07%; Ca Mau, increased by 9.05%, etc. However, in the opposite direction, the GRDP growth of some localities tended to decrease, including Quang Ngai (-1.07%), Vinh Phuc (-2.47%), Ba Ria – Vung Tau (-4.75%), Quang Nam (-10.88%), Bac Ninh (-11.85%).

Hanoi’s GRDP increased by 5.80%, ranking 3rd among 5 municipal cities and 32nd out of 63 localities. Photo: H.Diu

Among the five cities directly under the Central Government, Hai Phong is the locality with the highest growth rate of GRDP in the first quarter, reaching 9.65% and ranking 3rd among 63 localities (after Hau Giang and Binh Thuan); Da Nang increased by 7.12%, ranked 19th out of 63 localities. Hanoi’s GRDP increased by 5.80%, ranking 3rd among 5 municipal cities and 32nd out of 63 localities. In fourth place is Can Tho, with a GRDP growth rate of 4.02%, ranking 43/63 localities. Ho Chi Minh City’s growth rate was only 0.7%, the lowest among the 5 centrally-run cities and ranked 56/63 localities.

The total added value in the first quarter of Hanoi was estimated at 6.21% compared to the first quarter of 2022, of which the agriculture, forestry and fishery sector increased by 2.11%; the industry and construction sectors increased by 2.41%.On the other hand, the service sector, which accounts for a large proportion of the city’s economy, continued to maintain good growth with an increase of 7.4%. Several industries had high growth and contributed much to the general growth, such as administrative activities and support services (including tourism and travel) increased by 35.13%; finance, banking and insurance increased by 9.69%; wholesale and retail increased by 8.22%.

Thanks to the positive recovery of tourism and other associated service sectors, the economy of Da Nang in the first quarter still maintained a reasonable growth rate, with an increase of 7.84% over the same period last year. The service sector increased by 11.53%; the agriculture, forestry and fishery sector decreased by 0.01%; industry and construction decreased by 4.74%.

As a municipal city with the lowest growth rate in the first quarter, Ho Chi Minh City had a growth rate of only 0.7% over the same period last year. The service sector (accounting for more than 65% of the city’s GRDP) increased by 2.07%, of which 4/9 of the critical service industries had a negative growth (transportation and warehousing; information and communication; real estate business; healthcare and social relief activities); the industry and construction sector decreased by 3.60%; the agriculture, forestry and fishery sector increased by 2.06%.

The achievements of the whole country and each locality in the first quarter of this year have demonstrated the difficulties in unpredictable and unfavourable world economic and political situations. Entering the second quarter of 2023, Vietnam’s economy continues to face many difficulties and challenges, requiring the joint effort and participation of the whole political system, timely direction and administration of the Government, the Prime Minister and the efforts of all levels, sectors, localities and the business community to implement solutions and policies synchronously to achieve the proposing goal of growth.