Local and international visitors exploring a Tết bazaar, a vibrant market featuring shops and stalls, during the Tết (Lunar New Year) 2025 festival in HCM City. — VNS Photo Bồ Xuân Hiệp

HCM CITY — HCM City residents increased their spending during the Tết (Lunar New Year) holiday, with total retail sales and consumer service revenue estimated at VNĐ108 trillion (US$4.3 billion) in January, a rise of 7.5 per cent year-on-year.

Speaking on Wednesday at a meeting on socio-economic development, Phan Văn Mãi, chairman of the city People’s Committee, highlighted the positive economic indicators for January.

Retail sales of goods reached VNĐ53.7 trillion in January, up 11.5 per cent year-on-year, while accommodation and food service revenue rose to VNĐ12.8 trillion, up 21.6 per cent.

In addition, travel service revenue was estimated at VNĐ2.6 trillion, up 17 per cent.

Total state budget revenue amounted to VNĐ67.3 trillion, achieving 12.9 per cent of the annual target.

The consumer price index (CPI) rose by 0.92 per cent from the previous month and by 4.29 per cent year-on-year.

Tourism revenue exceeded VNĐ18.3 trillion in January, a 42.6 per cent increase, contributing to total budget revenue of VNĐ72.6 trillion.

During the nine-day Tết holiday, tourism revenue reached nearly VNĐ7.7 trillion ($307 million), a 17.4 per cent rise year-on-year, with the city welcoming 87,358 foreign visitors, up 16.5 per cent.

Despite real estate revenue reaching nearly VNĐ23 trillion in January, a 3.3 per cent decline from the previous month, it still accounted for 59 per cent of service revenue.

Mãi said: "These socio-economic results are encouraging and lay a strong foundation for the city’s future growth."

Lê Thị Huỳnh Mai, director of the Department of Planning and Investment, also spoke at the event and announced plans for public investment projects totaling over VNĐ84 trillion, aiming for complete allocation by the end of the first quarter.

The city also intends to undertake ten public-private partnership projects with an estimated investment of VNĐ100 trillion by 2025, focusing on healthcare, education, sports, and culture, she added.

Projections indicate that foreign direct investment (FDI) is expected to reach VNĐ66 trillion by 2025, while the private sector is anticipated to contribute VNĐ442 trillion.

The city will implement a strategic plan to enhance FDI attraction from 2023 to 2025, with a vision extending to 2030, according to Mai.

Double-digit growth

Foreign tourists seen in front of the Saigon Central Post Office in downtown HCM City’s District 1. — VNS Photo Bồ Xuân Hiệp

The country’s largest economic hub has set an ambitious goal of achieving double-digit economic growth annually over the next five years, which requires industrial growth exceeding 10 per cent during this period, according to Mãi.

Mãi said to achieve this target, the city will enhance its institutional framework and infrastructure, focusing on transport, energy, logistics, and digital systems.

It also plans to foster an ecosystem that promotes science and technology, innovation, digital transformation, and finance, he added.

The city will implement key policies based on a recent National Assembly Resolution addressing planning, public investment, and urban development.

It will actively seek partnerships with domestic and foreign investors to finance essential projects that will bolster its financial infrastructure.

Mãi expressed confidence in the potential for increased investment and job creation, stating, "If everything proceeds according to plan, we can achieve our growth target of over 10 per cent annually by 2030."

However, he also acknowledged significant challenges facing the city, including declines in import-export turnover, a 9 per cent drop in the industrial production index, and a 33.3 per cent decrease in FDI in January. — VNS