At the conference to review the implementation of socio-economic development tasks in 2024 and deploy tasks for 2025, held by the Ho Chi Minh City People’s Committee on December 26, Mr. Duong Ngoc Hai, Vice Chairman of the Ho Chi Minh City People’s Committee, shared that despite numerous challenges, with the efforts of the entire political system, the city’s economy achieved a remarkable growth rate of approximately 7.17%.
ECONOMY GAINS MOMENTUM IN RECOVERY
According to the Ho Chi Minh City People’s Committee’s report on the economic situation, the city’s economy witnessed a strong recovery in 2024, with higher growth in each subsequent quarter. Specifically, the growth rates for the first, second, third, and fourth quarters were 6.79%, 6.53%, 7.36%, and an estimated 7.92%, respectively.
“The city’s economy in 2024 maintained its recovery momentum, with higher growth in each subsequent quarter. The Gross Regional Domestic Product (GRDP) for the whole of 2024 is estimated to increase by 7.17% compared to 2023 (nearly reaching the set plan of 7.5-8%)”, said Mr. Duong Ngoc Hai.
The industry and construction sector grew by 6.89%, while industrial production maintained a stable growth rate, indicating the resilience and sustainable development of the city’s industry.
On the business front, there were positive signals as orders gradually recovered. Specifically, the Industrial Production Index (IPI) in 2024 is estimated to increase by 7.3% over the same period. Mining industry grew by 28.5%; manufacturing industry by 5.1%; and electricity production and distribution by 11.2%. Notably, the production index of the four key industries increased by 7.6% compared to the previous year.
The city’s total retail sales of goods and services in 2024 grew steadily, estimated at more than 1.2 quadrillion VND, an increase of nearly 11%. Specifically, retail sales of goods increased by 11%, accommodation and catering services by 9%, travel services by 55%, and other services by 8%. Revenue from tourism in 2024 is estimated at 190 trillion VND, up 18.8% compared to the same period in 2023.
The city’s total export turnover through the country’s customs gates in 2024 is estimated at 46 billion USD, an increase of 8.3% compared to 2023. The export commodity structure continued to shift positively, with the group of processed industrial goods continuing to account for a large proportion (75%) of export turnover. Total import turnover through the country’s customs gates is estimated at 58.6 billion USD, up 5.9% over the same period.
The year 2024 also marked a record high in budget revenue for Ho Chi Minh City, reaching more than 508 trillion VND, equivalent to 105.3% of the estimate, and an increase of 13.3% compared to 2023. Of this, domestic revenue saw the most positive change, reaching 356,840 billion VND, equivalent to 106.8% of the estimate and a 17.6% increase compared to the previous year; revenue from import and export activities reached 129,600 billion VND, up 6.96% over the same period.
In terms of public investment, in 2024, the city allocated a detailed plan for capital investment with a total of 79,263.776 billion VND, including 3,686.56 billion VND of central budget capital and 75,577.216 billion VND of local budget capital.
The city aims to achieve a disbursement rate of 60,944 billion VND by the end of December 2024, equivalent to 76.9%, and by the end of the 2024 fiscal year (January 2025), the disbursement is expected to reach 64,528 billion VND, equivalent to 81.4% of the total allocated capital.
The Vice Chairman of the Ho Chi Minh City People’s Committee acknowledged that the city still faces certain challenges that have slowed down the disbursement process, including changes in relevant laws, obstacles in site clearance and planning adjustment procedures, and dependencies on central ministries and sectors for procedural resolution.
Moreover, the city’s economy also faced certain limitations. The growth rate in the number of newly established enterprises and registered capital in 2024 decreased compared to the previous year. Specifically, the number of newly established enterprises was approximately 52,500, with an estimated registered capital of 400 trillion VND, a decrease of 1.2% in the number of enterprises and a 16.6% decrease in registered capital compared to the same period. Registered supplementary capital was about 340 trillion VND, down 39.7% over the same period. Overall, the total registered and supplementary capital in 2024 is estimated at 740 trillion VND, a decrease of 29.1% compared to the previous year.
In terms of foreign investment attraction, in 2024, the total estimated investment capital attracted in the form of granted investment registration certificates and capital attracted through the form of capital contribution, purchase of shares, and purchase of stakes of domestic enterprises was 4.85 billion USD, a decrease of 18.9% over the same period.
“The progress of projects under the Smart City Proposal has faced certain limitations, especially for large-scale and complex projects. There are also some obstacles in the digital transformation process,” said Mr. Hai.
ASPIRING FOR A 10% GROWTH RATE IN 2025
In 2025, Ho Chi Minh City aims to focus on completing key targets and tasks with the best results, striving for a GRDP growth rate of over 10%.
The city will also develop and implement plans for the 2025 theme, while continuing to reorganize and streamline the apparatus according to the Central’s directives. This will be accompanied by a review of institutions, a screening of personnel, and a strengthening of management effectiveness to meet development requirements.
Notably, the city will focus on mobilizing resources and promoting socialization in many fields, regularly updating the list of projects calling for investment to encourage the participation of all economic components.
Priority will be given to the implementation of key programs, schemes, and projects, including: The infrastructure development proposal, the coastal road project; The Thu Thiem – Long Thanh railway project; The Can Gio International Transit Port; The Ring Roads 2, 3, and 4; The Logistics Center Development Program; The Flood Control and Wastewater Treatment Proposal; and The Housing Development Program for the period 2021-2030, among others.
According to estimates, Ho Chi Minh City will need to mobilize about 450-500 trillion VND in 2025, of which the investment capital from non-state sources is expected to be 350-400 trillion VND.
Regarding administrative procedure reform, the city aims to be among the top five leading localities in the country in the Provincial Competitiveness Index (PCI) and among the top 15 localities in the Public Administration Reform Index (PAR-Index).
Mr. Dinh Khac Huy, Deputy Director of the Ho Chi Minh City Department of Planning and Investment, stated: “In 2025, the world situation continues to be complex, and the difficulties due to overloaded infrastructure and lack of resources will be partially resolved but may not fully meet the proposed needs. Therefore, achieving a two-digit growth rate is a significant challenge and requires the efforts of the entire political system, along with the companionship of businesses and the people.”
“An Ambitious Target: Surpassing the Industry’s 12-13% Growth Goal.”
In 2024, the industry is projected to grow by approximately 8.4%, a modest increase compared to the previous year. However, to achieve a true breakthrough, the industry must aim for an ambitious 12-13% growth rate in 2025, building upon the year’s 8.4% expansion.
The Economic Breakthrough of the Region with “The First River, The Ultimate Mountain”
The province boasts an impressive transportation network, being one of the few mountainous regions with a comprehensive range of intra-provincial, inter-provincial, and international transport links.
What’s So Special About the Metro Line 1 Schedule?
From today onwards, the number of trips on Metro Line 1 will increase to 200 trips per day, comprising 100 trips in each direction.
Streamlining Operations: Ho Chi Minh City Accepts Voluntary Resignations and Retrenchments
“The Chairman of the Ho Chi Minh City People’s Committee has requested that, from now until the completion of the reorganization of the apparatus in line with the Central Government’s orientation, all agencies and units temporarily halt the recruitment of civil servants, including those at the commune level. This also includes a pilot plan to hold competitive exams for leadership positions at the departmental level and equivalent in 2024.”
The Challenges of Implementing Decentralization and Devolution of Power in Ho Chi Minh City
Vice Chairman of the Ho Chi Minh City People’s Committee Duong Ngoc Hai shared his experience on implementing decentralization and delegation of authority in the city at the national online conference on reviewing the performance of the home affairs sector in 2024 and deploying tasks for 2025, held on the morning of December 21.
