Ha Noi needs to be cultural, economic hub, says NA Chairman Ha Noi's Ring Road No 3, the first urban expressway with flyovers, can be seen in full swing. Five years ago, Ha Noi's boundary was expanded to encompass neighbouring provinces. - VNA/VNS Photo Huy Hung HA NOI (VNS)- National Assembly Chairman Nguyen Sinh Hung has affirmed the need for Ha Noi to become an economic and cultural hub for Viet Nam at a meeting held yesterday to review Ha Noi's expansion plan. The meeting marked the fifth anniversary of the expansion of Ha Noi's boundary and was attended by most of the country's leadership. Speaking to the meeting, Hung said the capital's expansion had contributed considerably to the country's general socio-economic achievements. NA Resolution No 15 expanded Ha Noi's boundary to encompass neighbouring provinces, including Ha Tay, Me Linh District of Vinh Phuc Province and four communes in the Luong Son district of Hoa Binh province. According to a report by Pham Quang Nghi, Secretary of the Ha Noi Party Committee, the city's currently covers 3,328 square kilometres, three times its former acreage. The population had also increased by half to more than 7 million. Under the expansion, the capital assumed responsibility for 29 administrative units across 577 communes, districts and townships. In the five years since the expansion in 2008, approximately 12.6 million square metres of housing have been built, providing millions with accommodation, Nghi said. He also said that the city had achieved significant milestones across a range of political, social and economic issues. The most notable achievement is the capital's economic growth. Between 2008 and 2012, Ha Noi's economy grew at an average rate of 9.5 per cent, 1.5 times higher than the national average growth rate and amounting to 10 per cent of the country's total GDP. Meanwhile, exports saw an average annual increase of more than 15 per cent, from US$6.8 million in 2009 to $10.3 million in 2012. Budget revenue has risen more than twofold, from over VND57 trillion (over $2.74 billion) in 2007 (before the city's expansion) to over VND146 trillion (over $7 billion), contributing more than 20 per cent of the country's total budget revenue. More than VND50 trillion (over $2.4 billion) of the city's budget revenue has been spent on developing agriculture and assistance to farmers. In an interview with the Government's Web Portal, Deputy PM Nguyen Xuan Phuc said the expansion was historically and strategically important, paving the way for the further development of the capital. The expansion has allowed Ha Noi to have an appropriate administrative boundary and enabled stable, permanent development, he said. The city has become the political and administrative heart of the country and an international hub for culture, technology, education and economic activity. The expansion has also had positive impacts on Ha Noi's industrialisation, Phuc said. In particular, the strategy had helped reduce overpopulation in the inner city, allowing for the development of more green spaces and agricultural areas, he stressed. He noted that despite the city's achievements, Ha Noi still faced challenges in sustainable development, including land management, urban planning and population management. Meanwhile, traffic congestion and environmental health were also below expectations. Phuc called for greater cooperation between relevant State agencies and the Ha Noi People's Committee, for the timely issue of instructive legal documents for the Capital Law. He also noted that progress in relocating businesses, factories and universities beyond the inner city had been slow with no specific plans being developed. - VNS