Ho Chi Minh City’s Budget Soars: A Stellar 472,000 Billion VND in Just 7 Months

Ho Chi Minh City’s economic indicators for July showed positive results, with a notable GRDP growth rate of 7.6%, excluding the oil and gas sector.

A standout performance was the city’s budget revenue, which surged by 114.6% year-on-year to VND 472.588 billion, completing 70.4% of the assigned plan. This significant increase was driven by a 3.3-fold rise in land revenue and a substantial boost in domestic enterprise revenue.

The city successfully resolved obstacles for 86 projects, unlocking 1,200 hectares of land with a total value of over VND 420 trillion. Furthermore, public investment disbursement reached VND 47.577 billion, attaining 40% of the plan assigned by the Prime Minister.

According to Mr. Nguyen Cong Vinh, Director of Ho Chi Minh City’s Department of Finance, the respectable growth rate in July reflects the city’s industrial recovery and positive development, especially in key industrial sectors. It also demonstrates the effectiveness of the city’s supportive policies and industrial development strategies.

During the socio-economic meeting on August 9th, Mr. Nguyen Van Duoc, Chairman of the Ho Chi Minh City People’s Committee, shared that July marked the implementation of a two-level administration in the city. It also coincided with a vibrant investment landscape, attracting a host of prominent domestic and foreign enterprises exploring investment opportunities.

Mr. Duoc instructed the departments to focus on resolving bottlenecks and develop concrete plans to accomplish the 8.5% growth target set by the Government. He particularly emphasized addressing obstacles related to the oil and gas sector to ensure budget revenue and maintain growth momentum. This is a mandatory target that the departments, wards, and communes must strive to achieve.

Mr. Tran Phuoc Tuong, Deputy Head of the Ho Chi Minh City Statistics Office, drew attention to the city’s consumer price index (CPI). While CPI for July witnessed a slight decrease of 0.42% compared to the previous month, it marked a notable increase of 4.09% year-on-year. The average CPI for the first seven months rose by 4.07%, higher than the national average of 3.26%.

“The weak point of Ho Chi Minh City’s economy is inflation. If it is not controlled, inflation will soar from now until the end of the year,” Mr. Tuong cautioned.

Data from the Statistics Office revealed that global fuel price fluctuations in July directly impacted domestic gasoline prices. Additionally, reductions in electricity and water utility prices, along with lower food prices, were key factors influencing the consumer price index for July.

Out of the 11 groups of goods, 7 witnessed a decrease in prices compared to the previous month, with the most significant drop observed in the housing and construction materials group, at nearly 1%. The post and telecommunications group decreased by 0.68%, while the culture, entertainment, and tourism group also saw a decline.

Only two groups experienced an increase in price indices: beverages and tobacco, and other goods and services. Meanwhile, the price of medicine, healthcare services, and education remained stable.

The report from the Statistics Office also indicated that businesses operating in the city continue to face challenges. In the first seven months, the number of newly established enterprises decreased by 21% year-on-year, implying that for every 10 businesses entering the market, 8 exited. Additionally, registered capital decreased by 43%.

Despite these challenges, the FDI sector displayed positive results, with total foreign investment in Ho Chi Minh City increasing by 32% to reach approximately USD 4.7 billion.