Ho Chi Minh City in bid to regain economic locomotive position
Ho Chi Minh City in bid to regain economic locomotive position
Ho Chi Minh City (HCMC) is prioritizing efforts to restore economic growth and maintain its position as the country’s economic hub.
Positive recovery signals
After shrinking by 11.64 and 24.97 percent in the last two quarters of 2021, the city’s economy has turned around, reflecting the potential and vitality of local enterprises, particularly in industrial production, import and export, and budget revenue.
According to Director of the city’s Department of Planning and Investment Le Thi Huynh Mai, gross domestic product (GRDP) growth in the first quarter of 2022 is estimated to increase by 1.88 percent over the same period in 2021.
Ho Chi Minh City maintains its position as Vietnam's economic locomotive |
Production and business activities are gradually recovering. The number of newly-registered enterprises and those resuming operations in the first quarter reached the highest level of the last three years. Total registered and additional capital was estimated at VND282,975 billion, up by 2.78 percent year on year. Over 98 percent of production facilities in the city have resumed operations, enabling smooth circulation of goods. Authorities at all levels also focused on dialogue with businesses on removing obstacles in order to speed up production and business recovery.
Despite the COVID-19 impacts and geopolitical unrest, import and export turnover in the first quarter continued to maintain a recovery momentum. Specifically, export turnover of the city's enterprises through border gates reached US$11.9 billion, a 3.5 percent increase over the same period last year, while the import turnover was estimated at US$17.4 billion, up 18.4 percent year-on-year.
Over 98 percent of production facilities in Ho Chi Minh City have reopened |
In addition, the total state budget revenue was estimated at VND121 trillion, up 9.41 percent over the same period last year and equal to 31.31 percent of the annual estimates.
However, the city’s economy still faces limitations, such as a sharp drop of 40.09 percent in foreign direct investment (FDI) compared to the corresponding period in 2021, decreased retail service revenue, and a negative growth of the construction sector. The economic recovery process also faced other challenges, including the lingering effects of the COVID-19 epidemic, impacts of the Russia-Ukraine conflict, and soaring raw material and fuel costs.
Recovery determination
Given the city’s 2021 circumstances, the figures achieved in the first quarter of 2022 demonstrate the efforts and determination of municipal authorities, businesses and residents to speed up socioeconomic recovery.
In the second quarter of this year, HCMC hopes to further improve the investment and business environment, with a focus on public investment projects. It will also step up investment promotion for projects under the Smart Urban Program during the 2017-2025 period and the eastern highly interactive, innovative urban area in the 2020-2025 period.
HCMC will also strengthen strict and transparent management of the real estate market, review delayed projects to ensure legitimate rights of land users, resolutely handle violations of construction projects, reduce floodings and protect the environment and implement activities to gradually increase green urban areas.
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Along with the economic recovery, HCMC will continue to focus on social security, such as support forb disadvantaged groups, and develop housing for workers to encourage their long-term contributions in the city. |
