The Power of 3: Unlocking Growth Dynamics

On August 1, Chairman of the Ho Chi Minh City People’s Committee Phan Van Mai chaired a regular meeting on socio-economic development in the first seven months of the year and key tasks and solutions for the remaining months of 2024.

Strong growth in services and industry

On behalf of the Ho Chi Minh City People’s Committee, Le Thi Huynh Mai, Director of the Department of Planning and Investment, reported on the city’s socio-economic situation. She noted that in the first seven months of 2024, there was strong growth in the service and industrial sectors.

Compared to the same period last year, total retail sales of goods and service consumption revenue were estimated at over VND661 trillion, an increase of more than 10%. Export turnover was estimated at over USD26 billion, up 10%. Total tourism revenue was estimated at over VND108 trillion, a rise of 15.4%. Passenger transport volume exceeded 279 million, an increase of nearly 21%. Additionally, 29,990 new businesses were established, an increase of over 8%. Total state budget revenue in the first seven months reached over VND308.7 trillion, achieving nearly 64% of the estimate and an increase of nearly 14%.

At the meeting, Truong Minh Huy Vu, Vice President of the Ho Chi Minh City Institute for Development Research, stated that the indices showed that the city’s economy, as well as the country’s, was still facing challenges despite its recovery. Achieving a growth rate of 7.5% would require significant efforts from Ho Chi Minh City in the third and fourth quarters. Persistent bottlenecks include the disbursement rate of public investment capital, capital absorption capacity, and issues with import and export activities.

Based on the above, Mr. Vu mentioned that the Ho Chi Minh City People’s Committee has drafted a Directive on urgent, key, and regular tasks and solutions for July, August, and the coming months. The seven key task groups are expected to focus on disbursing public investment capital, absorbing capital, removing obstacles for key projects, administrative reform and delegation, promoting public spending and expanding markets, protecting the environment, and seeking new growth drivers.

“In these seven groups, the role of departments, branches, and sectors is very important,” Mr. Vu acknowledged. He added that the Ho Chi Minh City Institute for Development Research continues to gather feedback from departments, branches, and units to finalize and submit the directive to the City People’s Committee for issuance.

Important tasks ahead

In his conclusion, Chairman Phan Van Mai emphasized that the city’s task from now until the end of the year is to focus on achieving a growth rate of at least 7.5% for 2024 and meeting the assigned budget revenue target.

Mr. Phan Van Mai proposed three groups of growth drivers: investment, consumption, and exports.

Regarding investment, the first priority is public investment. Chairman Phan Van Mai shared that the city is closely monitoring and providing weekly guidance on this matter. Two projects that faced potential delays and difficulties in disbursement for the year, the Rach Xuyen Tam and the north bank of Kenh Doi, are now under his direct responsibility. As of now, these two projects are on track, demonstrating the importance of specific project management and problem-solving.

The Chairman urged investors to focus on accelerating construction progress, completing paperwork, and committing to monthly disbursement volumes.

“We have six months left, and on average, we need to disburse VND10 trillion each month. The disbursement peak for site clearance and new projects may be in the fourth quarter of 2024, but we must review this carefully. We need to calculate daily and make precise adjustments to achieve the 95% disbursement target,” Mr. Phan Van Mai noted.

For foreign investment, priority should be given to expansion projects to ensure capital flow and contribute to this year’s growth. Any obstacles to new projects must be reported with a spirit of responding to feedback within a day and resolving issues promptly.

In terms of consumption, Chairman Phan Van Mai requested that the Department of Industry and Trade focus on implementing a program to stimulate consumer demand, while the Department of Tourism should work on boosting tourism. Regarding exports, he asked the Department of Industry and Trade, the State Bank of Vietnam’s Ho Chi Minh City Branch, and the Business Association to provide support measures. The Department of Industry and Trade should identify specific areas that need assistance and develop policies to present to the People’s Council for consultation, thereby helping to boost export growth.

In his conclusion, Chairman Phan Van Mai also emphasized the need to closely monitor the progress of key projects: the Ho Chi Minh City-Moc Bai expressway, the Can Gio international transit port, and the completion and submission of dossiers for three projects, including the Ring Road 4, the urban railway system, and the International Financial Center.