The Vietnamese capital has determined that increasing domestic demand stimulus is a key task that can help to boost production and business as removing difficulties for firms will allow them to better meet supply and demand as a way of restoring economic growth following the impact of the COVID-19 epidemic.

According to figures released by the Hanoi Department of Industry and Trade, despite being hit by the affects of the COVID-19 epidemic, Hanoi was able to maintain its gross domestic product growth of 3.39% during the first half of the year, a high increase in comparison to provinces, cities, and the national overall level.

This comes after production and business activities in the capital have been gradually recovering since May, with indicators remaining higher than those recorded in April. With the COVID-19 causing complicated developments, the opening six months of the year saw the index of industrial production surge by an estimated 3.5%, whilst total turnover of goods and service revenue increased by 6.6%, and total retail sales expanded by 0.5%.

Tran Thi Phuong Lan, deputy director of the Hanoi Department of Industry and Trade, attributes these growing retail sales with the capital’s efforts to carry out a range of trade promotion activities in an attempt to stimulate domestic consumption demand following the conclusion of social distancing measures.

Indeed, supermarkets and trade centres have ensured there is an abundant supply of goods with no price fluctuations, whilst applying online shopping platforms to meet the needs of local people.

Vu Thanh Son, general director of the Hanoi Trade Corporation – Joint Stock Company Hapro, says that Hapro has launched a range of schemes to bring regional specialties to the system of supermarkets and shops such as Hapromart, Haprofood, and Intimex for consumption.

"The deployment of the distribution system and chain links with suppliers will create a stable market, making it easier for consumers to buy good products at reasonable prices, especially through bolstering the export of agricultural products amid the increasingly complicated development of the disease, "says Son.

In order to fulfill the economic growth target of being 1.3 times higher than the national growth rate set for the second half of the year, Hanoi has pushed ahead with several policies aimed at supporting domestic enterprises in recovering production and business through a broad array of market stimulus schemes.

According to deputy director of the Hanoi Department of Industry and Trade Tran Thi Phuong Lan, between now and the end of the year the capital is set to launch 18 stimulus measures with the participation of between five and eight business groups from other provinces and cities across the nation.

Moreover, five conferences are also planned to boost trade exchange and consumption whilst supporting provinces and cities consume seasonal products with fruit and agricultural products set to be launched in Hanoi over the course of 15 to 20 weeks.

Meanwhile President of the Vietnam Chamber of Commerce and Industry Vu Tien Loc proposes that more policies should be enforced in a bid to reduce taxes and cut administrative procedures as a means of stimulating greater consumer demand.