During the first four months of this year, the city’s economy showed strong signs of recovery with its first-quarter growth reaching 8.57%, higher than the national average. Several key indicators posted solid gains in the January-April period: industrial production rose 11.2%, total retail sales increased more than 13%, state budget revenues climbed nearly 18% year-on-year, and exports grew 4.3%.
To achieve its double-digit growth target this year, Ho Chi Minh City is focusing on traditional growth drivers, including investment, consumption, exports, market expansion, and removing obstacles facing businesses. Public investment, in particular, continues to be identified as a major engine of growth.
According to Vice Chairman of the municipal People’s Committee Hoang Nguyen Dinh, the city launched 10 strategic infrastructure projects in the first four months of the year, with total registered capital of around 20 billion USD. These projects are expected to become a crucial growth catalyst for the city this year.
Mr. Dinh said: “Achieving double-digit growth is extremely challenging. Although we have already launched 10 projects worth around 20 billion USD, the most important task now is ensuring that these projects are effectively disbursed so that capital can circulate through the economy. Administrative procedures and site clearance must move ahead of schedule. We need to accelerate land valuation and related procedures. This year, public investment disbursement must be treated as a mandatory task. Rather than striving, we must be determined to complete 100% of the plan assigned by the Government.”
Director of the Department of Finance Hoang Vu Thanh said Ho Chi Minh City is pinning hopes on new growth drivers, including the development of an international financial center, a free trade zone, innovation and digital transformation initiatives, and breakthrough mechanisms under the Special Urban Administration Law.
Mr. Thanh said: “In May, Ho Chi Minh City will focus on several key groups of solutions including aggressively implementing the Party Central Committee’s strategic resolutions, programs, and projects, while remaining steadfast in the goal of achieving growth of over 10%. The city will continue accelerating public investment disbursement, resolving bottlenecks once and for all, and unlocking resources related to land, public assets, housing, and urban planning. We are also prioritizing the development of new growth drivers such as the International Financial Center and the Free Trade Zone associated with science, technology, and innovation. At present, the Free Trade Zone project has been largely completed.”
Ho Chi Minh City’s economy is facing mounting pressure as it seeks to maintain high growth while dealing with a range of external challenges. Amid continuing global economic uncertainties, the city’s priority is to accelerate growth while unlocking resource flows and creating more room for sustainable long-term development.
