Vietnam’s capital city has targeted a 9%-10% GDP growth rate for next year, which would push income per person over $2,000. Targets for the city anticipate 135,000 new jobs and 1.6 percentage point poverty reduction. This would occur as Hanoi celebrates its 1,000th birthday, and it follows last year’s massive expansion of the city boundaries.
Impediments to the goals include health and environmental concerns — especially traffic congestion and food safety — that can discourage investors.
The city’s GDP increase for 2009 is expected to be nearly 7%, thanks largely to the government’s stimulus plan, including a 10% increase in construction and 18% in trade activities. Foreign direct investment in the city dropped to $700 million, a small fraction of Hanoi’s $5 billion in FDI last year.