HCM City's economy expands 8.55% in H1

HCM City's economy expands 8.55% in H1

Services remained the key growth driver, expanding 8.89 per cent in the first six months and accounting for 54 per cent of GRDP while contributing 56 per cent of overall growth.

HCM City is targeting economic growth of at least 10 per cent in 2026. — VNA/VNS Photo

HCM City's economy grew 8.55 per cent in the first half of 2026, supported by resilient domestic consumption, stable industrial activity, a continued tourism rebound and surging foreign direct investment (FDI).

Data released by the city's Statistics Office showed that gross regional domestic product (GRDP) rose 8.57 per cent in the first quarter and 8.53 per cent in the second.

Services remained the key growth driver, expanding 8.89 per cent in the first six months and accounting for 54 per cent of GRDP while contributing 56 per cent of overall growth.

Transport recorded the strongest performance with growth of 13.68 per cent, followed by trade at 8.4 per cent and finance at 8.21 per cent, while real estate continued to face difficulties.

Industry and construction increased 8.5 per cent, representing 32.8 per cent of GRDP and contributing 30.6 per cent to overall growth.

Industrial production remained a highlight, with the industrial production index (IIP) climbing 11.1 per cent in the first six months, up from 8.6 per cent in the same period last year.

The business environment also showed positive momentum, with the number of newly established enterprises rising 15.6 per cent year-on-year, while newly registered capital increased 26.5 per cent.

FDI inflows exceeded US$6.8 billion in the first half, surging 114.2 per cent from a year earlier. The city licensed 888 new foreign-invested projects with total registered capital of more than $1.1 billion.

Despite solid growth, the city continued to face challenges from global economic uncertainty and persistently high energy prices. Rising production and logistics costs, together with higher prices for goods and services, added pressure to growth momentum.

The average consumer price index (CPI) increased 4.41 per cent during the period. Transport recorded the highest price increase at 6.19 per cent, followed by food and catering services at 5.78 per cent and housing and construction materials at 5.22 per cent.

Public investment disbursement also lagged behind schedule, particularly for major infrastructure projects. As of June 26, nearly VNĐ37.3 trillion ($1.43 billion) had been disbursed, equivalent to 25.3 per cent of the Government-assigned annual plan.

HCM City is targeting economic growth of at least 10 per cent in 2026, meaning the economy will need to expand by more than 11 per cent in the second half to meet the goal.

To sustain growth, the Statistics Office recommended accelerating public investment disbursement, boosting domestic demand and closely monitoring price movements.

It also urged stronger support for businesses in accessing finance, production sites, administrative procedures, input materials and consumer markets.

The report further called for continued improvements to the investment and business environment, alongside stronger digital transformation, wider adoption of science, technology and innovation, and higher labour productivity to support sustainable, high-quality growth. 

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