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What Solutions Will Drive Ho Chi Minh City’s Double-Digit Growth?

8 February, 2025

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A conference room with people sitting at a table discussing ideas. (Photo: Tien Luc/VNA)

On February 5th, the People’s Committee of Ho Chi Minh City organized a conference to review the work of organizing and caring for the Lunar New Year holiday in the Year of the Tiger, 2025; as well as the socio-economic situation in January and tasks and solutions for February 2025.

The discussion focused on solutions to help the city achieve a growth rate of over 10% in 2025.

Positive Signals

In January 2025, Ho Chi Minh City’s economy showed some positive signals. Total retail sales of goods and services increased by 7.5% compared to the same period last year; total tourism revenue increased by 42.6%; international visitors increased by 18.6%; credit increased by 12.8%; budget spending increased by 80.24% (including a 61.84% increase in development investment and an 89.61% increase in regular spending); and export turnover increased by 2.3% compared to the same period.

Chairman of the Ho Chi Minh City People’s Committee, Phan Van Mai, shared that some socio-economic indicators showed significant increases compared to the previous year. Total revenue from goods and services reached nearly VND 108,000 billion; total tourism revenue was estimated at over VND 18,300 billion, up 42.6%. Budget revenue reached VND 72,600 billion.

Budget spending also stood out with VND 6,151 billion, of which VND 1,399 billion was disbursed for public investment in January. These are very positive signals.

Chairman of the Ho Chi Minh City People’s Committee, Phan Van Mai, delivers a speech. (Photo: Tien Luc/VNA)

In January, the city also announced the Master Plan for Ho Chi Minh City for the period of 2021-2030, with a vision towards 2050; and the plan to build an international financial center. The Prime Minister approved the investment policy for the Can Gio International Transit Port project.

“These are very encouraging results and are the outcome of a process that lays the foundation for future implementation,” said Mr. Mai.

However, the Chairman also acknowledged three limitations that need immediate solutions: a decrease in import-export turnover; a 9% decline in the industrial production index, including a drop in the four key industries; and a 33.3% reduction in foreign investment capital.

According to Mr. Mai, to achieve double-digit growth, the city’s industrial growth must be above 10%. Therefore, policies to support industrial production are necessary. Regarding import and export activities, the financial sector, along with related parties, should analyze and provide solutions, including supportive policies for these activities.

Ho Chi Minh City has set a plan to achieve a growth rate of 10% in 2025, which is a challenging political determination.

The Director of the Ho Chi Minh City Department of Planning and Investment, Le Thi Huynh Mai, shared that this target is based on comprehensive solutions that have been implemented consistently in the past period. Additionally, economic indicators such as credit and consumption in both the public and private sectors increased significantly in the first month of 2025, which will drive the overall economic growth in the coming months.

According to Ms. Mai, the city needs to “allocate growth” to certain key sectors and fields. According to statistical calculations, the growth rates for each sector are as follows: Agriculture increases by over 1.2%; Industry and Construction increase by 10.7% (including a 9.9% increase in Industry and a 15.4% increase in Construction); Services increase by 10.4% (including a 9.8% increase in Trade, a 14.9% increase in Transportation, and a 9.5% increase in Finance); and Tax on products increases by 8.7%.

Along with these targets, the city needs to allocate certain resources, such as achieving a public investment disbursement rate of over 95% in 2025; total social investment capital must reach over VND 600,000 billion; creating additional jobs for about 145,000 workers while improving labor productivity; credit growth of over 18%; and a budget revenue increase of over 14% from production activities.

Attracting Investment

Regarding investment solutions, Ms. Le Thi Huynh Mai shared that the city will implement public investment projects with a total expected capital of over VND 84,000 billion. The first and most important step is to allocate the entire capital in the first quarter of 2025. The city also plans to implement 10 projects using the Public-Private Partnership (PPP) model, with a total investment of about VND 100,000 billion in 2025; and continue to promote investment attraction in the fields of healthcare, education, sports, and culture with a portfolio of 41 projects.

One of the key solutions to achieve the high growth target is to improve the investment environment, remove obstacles, and enhance FDI and private sector investment attraction.

In 2025, the FDI sector is expected to contribute VND 66,000 billion in implemented capital, while the private sector will contribute the remaining VND 442,000 billion. Meanwhile, the expected FDI attraction is VND 178,000 billion (equivalent to US$7 billion) through new projects, expansion projects, and M&A.

Ms. Le Thi Huynh Mai stated that the city will focus on implementing the Project on Improving the Effectiveness of Foreign Investment Attraction in Ho Chi Minh City for the period of 2023-2025, with a vision towards 2030; proactively prepare in terms of mechanisms, land, and planning; and address any obstacles to facilitate investors’ access to 84 projects in the portfolio for investment attraction in 2024-2025, with a total expected investment capital of over VND 296,000 billion.

The city will also focus on calling for and attracting strategic investors based on taking advantage of the special mechanisms of Resolution 98/2023/QH15; and proactively prepare and implement procedures to attract investment in 11 areas expected to implement TOD (Transit-Oriented Development) with a total area of over 1,107 hectares along the metro lines 1 and 2, and the ring road 3.

In addition to the above solutions, Ho Chi Minh City will also implement solutions in the fields of science and technology, digital transformation, and productivity improvement; the real estate market; boosting consumption and tourism; and promoting export growth, among others, to achieve the double-digit growth target in 2025.

Secretary of the Ho Chi Minh City Party Committee, Nguyen Van Nen, gives directives. (Photo: Tien Luc/VNA)

At the conference, Secretary of the Ho Chi Minh City Party Committee, Nguyen Van Nen, emphasized the critical and challenging nature of the current period. He called for the entire political system of the city to exert greater efforts, determination, and unity. Ho Chi Minh City aims to achieve double-digit growth and fulfill the 22 set targets. These are ambitious goals, but the city has the conditions to succeed.

Mr. Nguyen Van Nen instructed the city’s units to implement solutions to mobilize resources for socio-economic development, prioritizing growth stimulation; continue to renew traditional growth drivers such as investment, consumption, and exports; and vigorously promote new growth drivers such as the digital economy, green economy, and circular economy.

According to the report of the Ho Chi Minh City People’s Committee, the total cost of caring for the Lunar New Year holiday in the Year of the Tiger, 2025, was over VND 1,295 billion, including funds from the central budget, the city budget, district budgets, socialized funds, and donations; and VND 45 billion for longevity wishes for elderly people.

Tien Luc

– 20:42 05/02/2025