HCM City maintains decent economic growth in four months

Ho Chi Minh City’s economic indicators showed decent growth in the first four months, although the disbursement rate of public investment remained low, participants heard at a socio-economic review meeting held by the municipal People’s Committee on May 3.

Between January and April, the industrial production index (IIP) of the southern economic hub went up by 5.1% compared to the same period last year. Its total retail sales of goods and revenue from consumer services, and tourism earnings reached some 366.95 trillion VND (14.67 billion USD) and 60.04 trillion VND, up 12% and 17.4% year-on-year.

The city’s export and import turnover, meanwhile, was estimated at 15.05 billion USD and 18.06 billion USD, year-on-year increases of 18.1% and 6.57%, respectively. The metropolis collected close to 183.45 trillion VND for the State budget, equivalent to 38% of the estimate and an annual growth of 7.5%.

Le Thi Huynh Mai, Director of the municipal Department of Planning and Investment, assessed that despite several indicators showing decent growth, the disbursement rate of public investment remained low, failing to meet the required progress. According to the report from the municipal Branch of the State Treasury, as of April 26, the city disbursed nearly 5.97 trillion VND, accounting for only 7.5% of the allocated funds.

Although the local business climate showed improvements, the number of businesses which temporarily suspended operations tended to increase, and the average registered capital of enterprises participating in the market continued to decline. In the four months, 15,874 new businesses were established with combined registered capital of nearly 128.95 trillion VND, increasing 7.6% in the number of firms but decreasing by 10.8% in capital compared to the same period last year. Additionally, 17,518 businesses temporarily suspended their operations, up by 17.5% year-on-year, and 1,126 enterprises completed dissolution procedures. The hub also attracted approximately 915.6 million USD in foreign direct investment, down 6.5% year-on-year.

According to Nguyen Khac Hoang, Director of the municipal Statistics Office, the indicators showed that local residents’ purchasing power was maintained, but there was still not enough momentum for a significant breakthrough.

Regarding business activities, market signals indicated numerous challenges, with inflation steadily increasing month by month, he said. These signs mean that the city’s economic growth drivers have not been truly sustainable yet, requiring analysis and improvement measures.

Chairman of the municipal People’s Committee Phan Van Mai called for the implementation of an action programme to speed up the disbursement of public investment in May and the following months, toward achieving a disbursement rate of not lower than 30% in the second quarter. The city must disburse 10 trillion VND per month to meet the target for this year, he said./.

(Source: https://en.vietnamplus.vn/)