The figures were announced at a press conference held by the municipal People’s Committee on April 6 to review the city’s socio-economic performance in the first quarter.

Addressing the event, Do Thu Hang, Deputy Director of the Hanoi Department of Finance, said the global environment remained volatile, particularly as the conflict in the Middle East since late February has disrupted maritime trade routes, pushed up energy prices and heightened inflation risks.

Despite these headwinds, Vietnam’s economy has maintained a positive recovery momentum, supported by industrial production, exports and public investment, she said.

In Hanoi, the decisive implementation of socio-economic development programmes from the start of the year helped sustain growth, with GRDP rising 7.87% year-on-year in the first quarter.

However, soaring fuel prices have added significant pressures. In March 2026, petrol prices jumped 28.09% month-on-month, while diesel rose 56.62%. Compared with March 2025, petrol prices increased 21.44% and diesel 58.67%, driving up transport and production costs and weighing on consumption.

Industrial production remained resilient, with the industrial index of production (IIP) rising 8.5% year-on-year, including 8.7% growth in manufacturing and 6.4% in electricity production and distribution.

Business activity also gained momentum. The city recorded 9,033 newly established enterprises, up 33.4%, with registered capital totaling VND168.5 trillion (about US$6.4 billion). Meanwhile, 5,147 businesses resumed operations, an increase of 36.1% year-on-year, though dissolutions and temporary suspensions also rose.

Foreign direct investment (FDI) reached US$478.9 million, down 66.2% year-on-year. In contrast, total investment capital in the city rose 10.1% to VND102.3 trillion, while public investment from the local budget surged 47.4% to VND20.9 trillion, the highest level nationwide.

Trade and services remained bright spots, Hang said. Retail sales and consumer service revenue reached VND252 trillion, up 11.2%, while tourism rebounded strongly with over 2.43 million visitors, including 1.78 million international arrivals.

In the coming time, the city will prioritise major infrastructure projects, accelerate public investment disbursement and stimulate consumption, including piloting the night-time economy in Hoan Kiem and Tay Ho.

Hanoi will also shift towards selective investment attraction, targeting strategic investors in high-tech industries, supporting industries and research and development, while promoting digital transformation across public services and commerce.

Officials said the first quarter has laid an important foundation, but achieving double-digit growth will require faster public investment, stronger mobilisation of social resources and new momentum from science, technology, the digital economy, culture and tourism.

Hanoi economy expands 5.5% in Q1

Hanoi’s economy continues its growth momentum in the first quarter of 2024, thanks to its activeness and flexibility in implementing socio-economic development measures, according to the municipal People’s Committee.