According to the Ho Chi Minh City Statistics Office, amidst a complex global economic landscape with intertwined challenges and opportunities, the city’s economy has shown positive signs of recovery, with a GRDP growth rate of 6.46% estimated for the first half of 2024 compared to the same period last year.
At a meeting on the city’s socio-economic situation in June 2024, Chairman of the Ho Chi Minh City People’s Committee, Phan Van Mai, emphasized the task for the remaining six months: to focus on removing obstacles and bottlenecks to boost economic growth.
REMOVING BOTTLENECKS
At the meeting, Chairman Mai acknowledged that the city’s average growth rate for the first half of the year was 6.46%, but stressed the need to surpass 7% in the third quarter and continue pushing for higher growth in the fourth quarter to achieve the target of 7.5-8% annual growth. He urged the entire government apparatus and relevant departments to focus on this crucial task.
According to Chairman Mai, this year’s themes for the city are digital transformation and the implementation of Resolution 98. The city has laid the foundational work for these initiatives, and it is now time to choose specific areas of focus and make breakthrough achievements.
He questioned whether the desired level of decentralization to departments, districts, and the city of Thu Duc had been achieved a year after the implementation of Resolution 98. He also emphasized the need to assess the progress of key programs and targets, especially the 49重点 program.
Based on the conclusions of the recent City Party Committee Conference, Chairman Mai suggested a thorough review of the 49重点 programs to identify the specific programs that should be prioritized for the remainder of the year.
The Ho Chi Minh City Statistics Office reported positive signs of economic recovery, with a GRDP growth rate of 6.46% estimated for the first half of 2024 compared to the same period last year.
Additionally, all nine of the city’s key service sectors showed positive growth, with the highest increase in the transportation and warehousing sector (18.47%) and the lowest in the real estate sector (2.94%).
According to a survey on business trends among manufacturing enterprises, the second quarter of 2024 showed signs of improvement compared to the first quarter. The industrial production index (IPI) increased by 5.6%, the highest in the last three years. 37% of businesses reported improved production and business performance, while 36.6% maintained stability and 26.4% faced difficulties. State-owned enterprises showed the most positive outlook, with 80% reporting improvements or stability.
Total retail sales of goods and consumer services revenue in the first half of 2024 is estimated to have grown by 10.0% year-on-year. Specifically, retail sales of goods increased by 10.2%, accommodation and catering services by 8.1%, travel services by 63.3%, and other services by 7.2%.
From the beginning of 2024 to June 20, the city granted licenses to 25,248 businesses with a registered capital of VND 214,716 billion, representing a 9.6% increase in the number of licenses and a 1.0% increase in capital compared to the same period last year.
ACCELERATING PROGRESS ON KEY INFRASTRUCTURE PROJECTS
At the meeting, Director of the Ho Chi Minh City Department of Transport, Tran Quang Lam, provided an update on the city’s infrastructure projects.
Regarding public investment disbursement, Mr. Lam expressed concern that the city has only disbursed 13.8% of the allocated funds so far, which is significantly lower than last year’s pace. He attributed this delay to various obstacles in both public and private investments.
“Bottlenecks in investment, including both public and private investment, must be addressed immediately. The city has established a specialized team that meets weekly to promptly address difficulties and remove obstacles to boost the city’s economic growth,” emphasized Chairman Mai.
Mr. Lam identified two main challenges for projects in the preparation phase: urban planning issues and land compensation procedures. He stressed the need to resolve these issues to accelerate public investment disbursement and ensure timely progress on key projects.
Regarding national key projects in the city, the Director of the Department of Transport mentioned five projects that are under the direct supervision of the Prime Minister, with monthly progress reviews. One of these projects is the Ho Chi Minh City Ring Road 3, where packages in other provinces like Binh Duong and Dong Nai are progressing faster than those in Ho Chi Minh City. He emphasized the need to focus on accelerating the project to avoid delays and ensure overall progress.
On the project to connect Tran Quoc Hoàn and Cộng Hòa streets, Mr. Lam pointed out the remaining obstacle at the intersection with Tran Quoc Hoàn street. He stressed the urgency of resolving this issue to ensure the road connection is completed before the opening of the T3 terminal at Tan Son Nhat airport next year. Additionally, the A4 canal, one of the three main drainage systems for the airport, has not been implemented yet.
Regarding the Metro Line 1 (Ben Thanh – Suoi Tien), the Department of Transport and relevant units are working on legal frameworks for operation and exploitation. They are also focusing on multi-modal transport connections, including buses and bicycles, to ensure seamless travel when the metro line becomes operational.
In his remarks at the meeting, Mr. Phan Van Mai acknowledged the city’s target of disbursing 30% of the planned public investment capital in the second quarter but noted that only 13% has been achieved so far. He emphasized the need to concentrate all efforts and find solutions to boost growth, starting with accelerating public investment disbursement in the remaining six months of the year.
Proposed Planning for Adding 2 New Cities in Ho Chi Minh City
According to Architect Ngô Viết Nam Sơn, Ho Chi Minh City should consider planning two cities within the city in the south and north.
Comprehensive regional connectivity
In addition to building strong physical infrastructure, Ho Chi Minh City needs to strengthen its soft connections with other provinces in the region in order to promote economic development. This includes prioritizing the training of skilled workforce and ensuring access to quality healthcare.
2023 Remittances Surpass Half of Ho Chi Minh City’s Budget Revenue
As part of the Homeland Spring 2024 program in Ho Chi Minh City, this morning (2/2), the overseas Vietnamese delegation had a tour of the City Hall and met with city leaders.
Three Economic Growth Scenarios for Ho Chi Minh City in Q1 2024
At the socio-economic meeting reviewing the results of January and setting the goals for February 2024, held this morning (1/2), the Ho Chi Minh City Institute for Research and Development has presented three economic growth scenarios for the first quarter of Ho Chi Minh City.
Emotional Kieu people when admiring Ho Chi Minh City from Metro Line 1
Ho Chi Minh City has undergone a remarkable transformation since the day I left. It now boasts a completely different appearance, exuding a fresh and vibrant energy. This sentiment was captured by Mr. Nguyen Duong Nam Phuong, a Vietnamese American, who was amazed by the city’s newfound liveliness.
