Elementary students pose for a photo in front of the HCM City People’s Committee building. The city's economy is set to recover strongly, with a projected GRDP of $70 billion in 2024. — VNS Photo Bồ Xuân Hiệp

HCM CITY — HCM City’s economy is on track for a robust recovery, with its projected Gross Regional Domestic Product (GRDP) soaring to VNĐ1.78 quadrillion (US$70 billion) in 2024, marking a growth of 7.17 per cent.

Speaking at a meeting on Wednesday, Dương Ngọc Hải, deputy chairman of the People’s Committee, said its economy has been steadily improving, with each quarter exhibiting enhanced growth.

Việt Nam’s largest economic hub recorded 6.79 per cent in Q1, followed by 6.53 per cent in Q2, 7.36 per cent in Q3, and an estimated 7.92 per cent in Q4.

It achieved a historic budget revenue of nearly VNĐ508.6 trillion ($19.7 billion) for 2024, up 13.3 per cent and accounting for 27 per cent of the nation’s total revenue.

Local budget expenditures are projected to reach VNĐ127.460 trillion, about 85 per cent of the yearly target.

Retail sales and consumer service revenues are expected to exceed VNĐ1.2 quadrillion, up 10.7 per cent.

Its total outstanding credit is set to reach nearly VNĐ3.89 quadrillion, up 10 per cent year-on-year.

Exports are predicted to exceed $46 billion in 2024, while imports may reach $58.6 billion.

The industrial production index is estimated to grow by 7.3 per cent, while the agricultural, forestry, and fishery sectors are expected to experience a modest increase in value.

The recent launch of the city’s first metro line, linking Bến Thành Market in District 1 with Suối Tiên Theme Park in Thủ Đức City, not only marks a milestone in its urban transport system but add a catalyst for its tourism development, he noted.

It received six million international visitors with total tourism revenue projected to exceed VNĐ190 trillion in 2024, up 18.8 per cent year-on-year.

Foreign tourists at HCM City Post Office in District 1. The city expects six million international visitors and tourism revenue to surpass VNĐ190 trillion in 2024, up 18.8 per cent over last year. — VNS Photo Bồ Xuân Hiệp

Pressing issues

However, Hải pointed out several ongoing challenges that continue to hinder the city’s growth, mostly delays in infrastructure, social housing, and environmental projects.

Public investment disbursement has fallen short of targets, he said, calling for urgent attention.

As of the end of October, only VNĐ17.3 trillion has been disbursed, which is only 22 per cent of the planned budget for 2024.

It aims to boost the figure to VNĐ60.9 trillion (76.9 per cent) by the end of December, with a target of reaching VNĐ64.528 trillion (81.4 per cent) by the end of January 2025.

The low disbursement rate can be attributed to issues such as site clearance challenges, complex procedures, and shortages of materials.

In addition, there were only some 52,500 new companies established in the city this year, a decline in both quantity and registered capital compared to 2023.

Meanwhile, around 4,200 companies have completed the dissolution process, and numerous others have temporarily suspended operations.

Traffic safety remains a pressing issue in the city, with 1,459 road accidents resulting in 472 fatalities, down in both incidents and casualties compared to 2023.

In terms of public safety, it has recorded a reduction in social order crimes, with 4,724 cases reported this year, down 16.92 per cent compared to 2023.

In 2025, the city will focus on creating a streamlined, efficient, and effective administration while promoting digital transformation and addressing existing challenges, according to Hải. — VNS