Hanoi is targeting a Gross Domestic Product (GDP) growth rate of over 10% this year and hopes to curb the Consumer Price Index (CPI) growth in the remaining months of 2010.
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During a meeting with districts and provinces on March 31, leaders of the city expressed their enthusiasm at the GDP growth rate of the first quarter reaching 8.7% however, they were also concerned about CPI related issues and international tourists in Hanoi during the first quarter.
For the first quarter, the CPI of Hanoi increased 4.72% which is higher than neighbouring provinces and has dramatically impacted the national price index.
Nguyen The Thao, Chairman of the Hanoi’s People’s Committee, said that the city spent VND250 billion ($12.9 million) on stabilising prices, but unfortunately prices increased on goods which were not included in the list of reserved goods.
Thao affirmed that the city would continue to stablise prices and requested functional agencies to provide proper forecasts on demand and supply.
The head of Hanoi also set a goal that CPI growth rate would go down gradually during the remaining months of 2010. Accordingly, it’s necessary to make efforts to curb Hanoi’s CPI growth at 4% only or 0.4-0.5% per month.
Pham Quang Nghi, City Party Committee Secretary, highlighted that the committee needs to pay attention to solutions for CPI control. Achieving a GDP growth rate of over 10% is the first priority of the city this year.
Regarding Hanoi’s tourism industry, there was a decrease of 7.2% in the number of international tourists to Hanoi compared with the same period last year; meanwhile the number increased 36% nationwide.
Pham Quang Long, Manager of Hanoi’s Department of Culture, Sport & Tourism explained that room and tour charges went up because the Government’s stimulus package was finished and domestic goods prices increased.
In addition, the number of international tourists to Thailand slashed causing a decrease of tourists from Thailand to Vietnam.
Besides the external reasons, Long admitted that advertising and promotion of tourism in Hanoi remained weak. In the near future, his department will focus on advertising activities of potential places and reorganising tours.