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VietNamNews

City economy runs into difficulties

Update: October, 30/2013 - 09:00

Seafood processing at the HCM-based Tan Binh Food JSC. The low added value of exported goods such as farm produce and seafood is one of reasons behind the decrease in export turnover over the past few months. — VNA/VNS Photo Dinh Hue

HCM CITY (VNS) — In the last few months of the year, HCM City has encountered economic challenges, especially in exports, according to a report presented to the city People's Committee yesterday.

Thai Van Re, director of the city's Planning and Investment Department, said October's retail sales and services turnover had reached VND52.2 trillion (US$2.5 billion) of 12.5 per cent.

Total retail sales and services turnover of the first 10 months of the year is estimated to bet over VND493 billion (nearly $23.5 million), up by 12.2 per cent over last year.

However, the city's export turnover of $2.3 billion was down by 16.5 per cent compared with the same period last year, while its imports remained at $2.3 billion.

The city's first 10 months showed that exports reached $21.76 billion, a year-on-year decrease of 6.8 per cent. Major export staples seeing decreases included rice, coffee, seafood and footwear.

Exports of raw materials and semi-processed goods (such as footwear) and the low added values of other exported goods (such as farm produce and seafood) were the reasons behind the decrease in this year's export turnover.

The struggling global economy has also affected Viet Nam's export revenues, said the report.

Dao Thi Huong Lan, director of the city's Finance Department, said total revenues of the city's State coffers in the first 10 months reached VND186.5 trillion (nearly $8.9 billion), accounting for 78.8 per cent of the year's target, and a year-on-year increase of 8.3 per cent.

Lan said the target total revenue set by the central government for HCM City was too high under current economic conditions.

According to Tran Anh Tuan from the HCM City Institute for Research and Development, the city attained industrial growth rate of 5.9 per cent in the first 10 months of 2013, but the growth rates of the four major industrial sectors were only 5.5 per cent.

The low growth rate of 2.9 per cent attained by the city's electronics industry was due to low purchasing power, and the 4.7 per cent growth rate of the city's mechanics sector was caused by the low competitiveness of the industry.

Meanwhile, the transportation and tourism sectors attained high growth rates, indicating the city's efforts to re-structure its economy, said Tuan.

He asked the city authority to give more attention to the stabilisation of prices of essential goods, to speed up disbursements for investment projects in the city, and to better link re-structuring banks and enterprises and public investments. — VNS

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