“Ho Chi Minh City Aims for 10.3% Economic Growth in the Final Months of 2023”

Image source: Tourism Department

Various sectors are making breakthroughs

Reporting at the meeting, Director of the Department of Finance, Nguyen Cong Vinh, stated that the city’s economy is maintaining a positive growth trajectory despite challenges and difficulties. The industry continues its strong recovery with an estimated industrial production index (IIP) for July increasing by 3.7% compared to the previous month and 9.8% over the same period in 2024. On average, the IIP for the first seven months increased by 5.9%, with the four key industries growing by 11.1%. Traditional industries such as textiles, garment manufacturing, and leather products also achieved an impressive 11.2% growth rate.

The trade and service sector also witnessed remarkable progress. In July alone, the total retail sales of goods and service revenue reached VND 159,950 billion, up 14.7% compared to the same period last year; revenue from accommodation and catering services reached VND 18,805 billion, up 20.1%, and travel services revenue reached VND 5,986 billion, up 32.8%. For the first seven months, total retail sales and service revenue reached VND 1,072,712 billion, up 15.5% year-on-year, largely due to consumption stimulus programs and the VAT reduction to 8% effective from July 1st.

Tourism emerged as a bright spot, with total revenue in July reaching VND 22,368 billion, up 45.6% year-on-year. For the first seven months, the sector generated VND 140,305 billion in revenue, up nearly 30%, and achieved 54% of the annual plan. International visitor arrivals reached 4.55 million, a 48% increase, while domestic visitors totaled 21.72 million, up 8.2%.

Exports maintained their growth momentum, with a turnover of US$7.7 billion in July, bringing the total export value for the first seven months to US$52.92 billion, up 7.15% year-on-year. The city also recorded outstanding achievements in attracting FDI, with US$6.19 billion in the first seven months, up 45.6% compared to last year, reflecting the confidence of international investors.

Notably, Ho Chi Minh City is among the top localities in effective public investment disbursement for the first time. The total capital allocated and detailed allocation reached VND 151,431.9 billion, equivalent to 127% of the Prime Minister’s assignment. By the end of July, the disbursed capital reached VND 47,577 billion, or 40% of the plan. Business registration activities were vibrant, with 31,052 newly established enterprises, registered capital of VND 162,942 billion, additional capital of VND 403,110 billion, bringing the total registered and additional capital to VND 566,052 billion, up 9% over the same period.

Budget revenue for the first seven months reached VND 472,588 billion, equivalent to 70.4% of the estimate and an increase of 14.6% compared to the same period last year.

Accelerating to achieve the 2025 targets

Concluding the meeting, Chairman of the Ho Chi Minh City People’s Committee, Nguyen Van Duoc, emphasized that to achieve the target of 8.5% growth for the whole year as assigned by the Government, the city’s GRDP in the last five months must reach a minimum growth rate of 10.3% to 10.5%. He affirmed that this is a “mandatory” task that requires the synchronous and drastic involvement of the entire political system, sectors, branches, and the business community.

To achieve this goal, it is necessary to immediately address existing problems. There is an urgent need to accelerate the progress of public investment disbursement, considering it as a key driver to promote infrastructure development and stimulate social resources. Land clearance for many key projects is still facing obstacles, requiring close coordination between units for timely handling.

The City Chairman also noted the backlog of dossiers in some newly established wards and communes due to a lack of specialized personnel in areas such as land, environment, and construction management, leading to confusion in handling tasks. He requested that leaders of departments and sectors proactively review, arrange, and assign appropriate personnel, as well as send staff to directly support at the grassroots level to ensure that people’s and businesses’ dossiers and procedures are resolved promptly and efficiently.

In the coming time, the city will continue to promote administrative reform in a more practical direction, remove obstacles for production and business activities, and effectively implement policies to develop the private economy according to Resolution 68-NQ/TW. The connection between private enterprises, state-owned enterprises, and FDI investors will be strengthened, aiming to form competitive supply chains in both the regional and global markets.

The city also aims to complete the planning and synchronously invest in infrastructure development, giving priority to transportation to reduce congestion, accelerate social housing projects, and upgrade residential areas along canals and rivers. The management and use of resources will be tightened, along with solutions to prevent and control environmental pollution. Science and technology, innovation, and comprehensive digital transformation continue to be considered a pillar to enhance competitiveness and promote sustainable growth.