Deputy Chairman of the Hanoi People's Committee Nguyen Manh Quyen on July 10 met the Department of Industry and Trade to review the city's industrial and commercial performance in the first half of the year and address emerging challenges.

According to Nguyen Kieu Oanh, Deputy Director of the Hanoi Department of Industry and Trade, in the first six months of 2025, the department advised the city to approve the establishment or expansion of nine industrial clusters.

Two new clusters have broken ground, bringing the total number of clusters under construction or inaugurated to 34 out of 43. Of these, seven have completed infrastructure development, and five have already attracted secondary investors for production and business.

The department also actively implemented measures to ensure stable electricity supply across the city. Power distribution remained safe and uninterrupted, supporting political, cultural, and economic activities and daily life in the capital.

Efforts to strengthen regional connectivity have positioned Hanoi as a driving force in supporting other provinces and cities in product consumption, thereby maintaining supply-demand balance.

Goods supply remained stable throughout holidays and festive periods, helping contain the city's consumer price index (CPI), which rose by only 3.2% in the first half of the year – well below the annual target of 5% and lower than national and other major city averages.

Hanoi's gross regional domestic product (GRDP) in the first six months was estimated to increase by 7.63% year-on-year. Industry and wholesale/retail contributed 1.54 percentage points, accounting for 20.2% of the overall growth.

However, global political instability and changes to US tariff policies in the second quarter posed challenges for manufacturers, particularly in the processing and manufacturing sectors.

In domestic trade, the enforcement of new tax regulations and tighter food safety inspections in June led to the temporary closure of several non-compliant retail businesses.

That month alone, 1,657 enterprises ceased operations, a 41.4% increase year-on-year, while 573 businesses were dissolved, up 59.1%.

Despite global volatility, export turnover in the first six months rose by an estimated 12.5% year-on-year.

In the second half of 2025, the department aims to exceed several key targets: industrial value-added growth of at least 7.15%; wholesale and retail value-added growth of 10.6%, with the full-year rate to exceed 8.79%; total retail sales and service revenue to grow by at least 14.53%; and annual export growth to reach at least 7%. The city will continue efforts to keep CPI growth below or at 5%.

During the meeting, department officials and representatives from other agencies discussed implementation issues, particularly difficulties arising from the city's transition to a two-tier local government system. Participants also proposed solutions to improve coordination and task execution.

Deputy Chairman Quyen emphasized that under the new governance model, the department must provide support to commune- and ward-level authorities in fulfilling their assigned responsibilities.

He called for a thorough review of industrial zones and clusters, as some now span two or three communes, requiring a clear assignment of responsibilities.

Quyen also pointed out the lack of progress in key projects such as the development of outlet centers and wholesale markets in Gia Lam, urging the department to be more proactive in removing obstacles and implementing long-standing plans.

To eliminate informal street markets, he instructed the department to work with relevant agencies and local authorities to completely phase out these markets by the end of 2025.

Efforts should be made to develop modern market infrastructure, in line with the Hanoi Party Committee's Program 03 on urban renewal and development for the 2021–2025 period.

The department is also tasked with coordinating with the departments of Agriculture and Environment to identify and relocate small-scale slaughtering operations to centralized facilities to ensure food safety.

Achieving this goal will require strong policy support for infrastructure investment by businesses and relevant units.

To modernize the city's retail system, the department is expected to attract private capital for the construction of outlet centers and wholesale markets, push forward consumer stimulus programs, and decisively shut down informal markets.

In terms of industry and handicrafts, Hanoi must define its core industrial products with the potential to compete regionally and internationally.

The city will organize high-profile craft fairs to promote its image, attract residents and tourists, and build strong supply and demand linkages.

Support for traditional craft villages and the development of multi-purpose production models are also key priorities.

To increase exports, the department will collaborate with national ministries to boost trade promotion activities in foreign markets, helping enterprises expand their global reach.

Finally, the department will improve the structure of the market management force and intensify efforts to combat commercial fraud, counterfeit goods, and especially violations in e-commerce.