Hanoi’s economic growth set to hit six-year high

• Vietnam sets goal of 6.7 percent economic growth for next year
• Ho Chi Minh City's economic growth to slow this year

Hanoi’s economic growth is on track to reach its highest level in six years this year thanks to a rapid surge in investments, city officials said at a meeting this week.

Despite failing to reach the annual target of 8.5-9 percent, the capital’s projected economic growth of 8.03 percent is still better than in recent years, the Vietnam News Agency cited officials as saying.

The service sector has grown by 8.1 percent while industry and construction have witnessed increases of 8.8 percent and agriculture 2.21 percent.

Hanoi has seen a lot of business activity this year. New businesses increased by 19 percent from last year to nearly 23,000, with a total value of $9 billion, up 42 percent.

Nguyen Doan Toan, Hanoi’s deputy chairman, said registered investment in the city in 2016 has hit an all-time high of nearly VND424 trillion ($18.7 billion). Foreign investment pledges have also increased 2.6 times from last year to $2.8 billion.

The country’s second largest city, after Ho Chi Minh City, also saw nearly $12.3 billion of private investments disbursed this year, up 10 percent from 2015, he said.

However, HCMC is expected to hit its lowest GDP growth in six years this year at 8 percent.

Officials at the Hanoi meeting also set a socio-economic development plan for 2017, aiming again for GDP growth of between 8.5 and 9 percent and an average annual income of VND86-88 million ($3,800-3,890).

The World Bank and Asian Development Bank recently lowered their growth forecasts for Vietnam to 6 percent after the country’s economy cooled off in the first half following the impacts of drought on agricultural production and falling industrial growth.

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>Vietnam sets goal of 6.7 percent economic growth for next year

>Ho Chi Minh City's economic growth to slow this year