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“The Economic Powerhouse of Ho Chi Minh City: Driving Vietnam’s Growth”

10 August, 2024

Chairman of the Ho Chi Minh City People’s Committee, Phan Van Mai, reporting at the conference – Photo: VGP/Nhat Bac

Reporting on the socio-economic situation of Ho Chi Minh City for the first seven months of 2024, the Chairman of the City People’s Committee shared that the city’s GRDP for the first six months was estimated to increase by 6.46% compared to the same period, the highest since 2020, contributing 19.64% to the country’s overall growth rate.

State budget revenue in the area for the seven months reached VND 309,000 billion, achieving nearly 64% of the yearly estimate, an increase of nearly 17.3% over the same period.

In July, the economic sectors continued to see positive changes. The total retail sales of goods and service consumption increased by 10.6%. Export turnover increased by 10%; import turnover increased by 5.9%; the industry production index increased by 6.2% over the same period. The number of newly established enterprises increased by 8.4%. The tourism industry continued to maintain its development momentum and achieved high growth; total tourism revenue increased by 15.4%; international visitors to the city increased by 30.3%; the volume of public passenger transport increased by 20.8% over the same period.

The city’s government apparatus has been functioning positively. The city has synchronously implemented solutions to accelerate the progress of key projects, focusing on resolving legal obstacles to implement these projects, with initial results. Efforts have been made to complete the Metro Line 1; and to organize the construction of key transport projects in three shifts and four teams during the Tet holiday, such as the Ring Road 3 Project; the An Phu Intersection Project in Thu Duc City; the project to build and expand the road connecting Tran Quoc Hoàn and Cộng Hòa streets in Tan Binh District; and the project to build and expand National Highway 50.

The city has submitted the Ho Chi Minh City Planning dossier for the 2021-2030 period, with a vision towards 2050, to the Ministry of Planning and Investment, which has been appraised and verified according to the planning appraisal report. The city has also completed the adjustment of the Ho Chi Minh City Master Plan until 2040, with a vision towards 2060, to submit to the Ministry of Construction.

Programs in cooperation with other localities have been effectively and practically implemented. Many cultural, literary, and artistic activities have been organized with great influence, and programs to celebrate major holidays have been carefully prepared. Commemoration activities, festivals, and events have been organized economically and meaningfully. Attention has been paid to administrative reform, social welfare, and job creation; and the pandemic has been kept under control.

Notably, political security and social order and safety have been maintained, and the fight against crime has been intensified, leading to a significant reduction in criminal activities. “This is a bright spot and a positive development in Ho Chi Minh City,” said Mr. Mai.

However, the head of the city’s government also acknowledged some limitations, including the city’s capacity to absorb capital and disburse public investment has not been fully realized. Some breakthrough mechanisms and policies under Resolution 98 to unleash potential and mobilize resources have been slow to take effect.

In the last months of the year, the city will focus on solutions to implement the plan for the year, including concentrating on disbursing public investment; removing obstacles and increasing the capacity to absorb capital; implementing the Directive on growth; and continuing to implement the dynamic mechanisms and policies of Resolution 98 in conjunction with the recently issued Decree 84. The city will also focus on completing key projects and proposals to submit to competent authorities for the National Assembly to issue resolutions on the International Financial Center, the urban railway system, and the Ring Road 4 Project.

Overview of the conference – Photo: VGP/Nhat Bac

Focusing on disbursing public investment capital

Regarding the results of public investment disbursement, according to Mr. Mai, as of yesterday, the city disbursed VND 13,218 billion out of VND 79,263 billion, reaching 16.7%. This result is lower than the national average and the city’s target of 30% for the first six months.

The reasons for this situation include delays in handling procedures related to public investment, such as planning, site clearance, and project procedures. Many large-scale projects are awaiting the application of new laws, such as the Land Law, which will take effect from August 1, 2024, and the Bidding Law, which will be guided from April 2024.

Some large-scale projects have legal obstacles, such as the VND 10,000 billion flood control project. Some projects using sand filling in the construction component, for example, the Ring Road 3 Project, have been delayed, affecting the overall progress.

Looking ahead, Mr. Mai shared that the city will focus on strictly following the directions of the Prime Minister and the Government on accelerating public investment; strengthening the responsibility of investors and related parties; enhancing inspection and handling of issues; and operating the specialized team of the Ho Chi Minh City People’s Committee to monitor and follow up on tasks daily and promptly resolve any problems.

The city aims to disburse 95% of public investment capital for the year according to the following milestones: August aims for VND 16,200 billion, reaching 20.4%; September aims for VND 21,300 billion, reaching 26.9%; October aims for VND 30,400 billion, reaching 38.4%; November aims for VND 35,700 billion, reaching 57.8%; December aims for VND 68,000 billion, reaching 85.9%; January 2025 aims for VND 74,900 billion, reaching 94.6%.

Nhat Quang