Mr. Phan Van Mai said that in April, the city continued the growth momentum of the first quarter, however, there were signs of slowdown and difficulties. The disbursement result of public investment after the end-of-year sprint, the public investment disbursement in April was very low. The settlement of difficulties for businesses also slowed down, with results lower than expected. “Perhaps in the first quarter, the easy part has been done, now what remains is the hard part, so we really need to focus on solving it,” Mr. Mai said.
HCMC will organize promotional campaigns to stimulate consumer demand and boost economic development. Photo: Van Son
According to the report of the Director of the Department of Planning and Investment Le Thi Huynh Mai, the purchasing managers index in April increased by more than 52 points, the economy has developed but has not yet had a strong enough boost. Industrial production activities are returning, however, most of the orders are short-term orders, while the prices of input materials have increased, leading to a decrease in businesses’ profit margins. The city’s industrial production in April increased by 5.1%, lower than the national average (the country increased by 6%).
According to Chairman of HCMC People’s Committee Phan Van Mai , the recovery of the market and businesses is still facing many difficulties. In the remaining months of 2024, the city cannot be subjective. “Departments, agencies, and businesses need to seriously assess, remove difficulties, better coordinate, and not let professional activities stagnate. Each comrade in charge of departments and agencies needs to analyze the reasonable points to promote, the points of excessive fear that need to be overcome to create momentum for the city’s economic development,” Mr. Phan Van Mai requested.
In April, the city welcomed about 1.8 million international tourists, an increase of 57.3%, but the revenue from food and beverage services increased slightly. According to the report of the Department of Tourism, although the number of international tourists has increased, the number of domestic tourists to the city is low due to the high airfares, leading to a decrease in travel and tourism demand.
Besides the difficulties in production activities, the Department of Planning and Investment said that inflation is showing an increasing trend over the months. Budget revenue increased, but revenue from import and export activities decreased by more than 17%. Regular budget expenditure in April decreased by 13.3%, posing a risk to growth in the second quarter.
The shift of money flows in credit activities has increased again, reaching 9.6%. The demand for borrowing has increased again, forecasting that interest rates will increase in the coming time. Currently, the real estate market is showing signs of recovery, but the price of gold is continuously increasing, making it difficult to put money into production activities.
Stimulus is needed
To help HCMC’s economy develop positively in the near future, Nguyen Ngoc Hoa, Chairman of the HCMC Business Association, said that the city needs to stimulate the economy through solutions focusing on domestic consumption, accelerating the disbursement of public investment capital, and putting new projects into operation soon to create momentum for growth. The city needs to accompany businesses in removing tax and fee support packages, and strengthen propaganda and mobilization work to guide people and businesses in economic development. It is necessary to have solutions for regional linkage to well control issues related to cooperation in economic development among localities.
Mr. Bui Ta Hoang Vu, Director of the Department of Industry and Trade said that although wholesale and retail are increasing at double-digit levels, the domestic market needs to continue to stimulate demand. Market stabilization models, concentrated promotions need to mobilize large enterprises, limit price increases, reduce costs, keep prices stable to serve the market, and prevent inflation. It is expected that from June 15 to July 15, the city will implement a concentrated promotional campaign to stimulate consumer demand.
