A view of HCM City’s skyline. Việt Nam’s largest economic hub reported its fastest first-quarter growth in a decade. — VNA/VNS Photo

HCM CITY — HCM City, Việt Nam’s largest economic hub, reported its fastest first-quarter growth in a decade and called for faster reforms and more decisive action to achieve double-digit expansion this year.

Gross regional domestic product (GRDP) rose by 8.27 per cent year-on-year in the first quarter of 2026, the highest increase in 10 years, according to city officials.

The strong performance was underpinned by broad-based gains.

Retail sales and consumer service revenue expanded more than 13 per cent, industrial production increased by 11 per cent, and budget revenues rose by 19 per cent to more than VNĐ247 trillion (US$9.5 billion).

Foreign direct investment (FDI) inflows reached nearly $2.9 billion, more than tripling from a year earlier, while the city welcomed over 19 million visitors.

Authorities also accelerated administrative procedures for 831 out of 838 delayed projects, representing over 99 per cent, with a combined investment value exceeding VNĐ205 trillion.

The data highlight the resilience of Việt Nam’s commercial centre amid an uncertain global environment, reinforcing its role as a key growth engine for the export-driven economy.

Challenges

However, officials cautioned that the current pace may be difficult to sustain without structural improvements.

Nguyễn Lộc Hà, deputy chairman of the municipal People’s Committee, said: “A strong start alone is not sufficient. To achieve double-digit growth, the city must act more decisively, differently and effectively.”

He pointed to persistent challenges, including slow implementation across agencies, incomplete growth planning and delays in administrative processing.

More than 42 per cent of units have yet to finalise double-digit growth plans, while a significant share of assigned tasks remain overdue, according to the city’s review.

Growth quality also remains a concern, with expansion still heavily reliant on services, while public investment disbursement has lagged and land-related procedures continue to hinder project execution.

Three growth scenarios

The HCM City Institute for Development Studies outlined three scenarios for the second quarter, depending on global and domestic conditions.

Growth could range from 7.7-8.6 per cent in a downside scenario, 9.1-10 per cent under baseline conditions, and 10.7-11.6 per cent in a favourable scenario.

To meet the city’s full-year target of more than 10 per cent growth, the remaining quarters would need to expand by over 10.5 per cent, supported by stronger public investment, domestic consumption, exports and emerging drivers such as the digital economy.

City authorities have set an April 15 deadline for agencies to finalise growth plans and are prioritising faster disbursement of public funds, infrastructure development and administrative reform.

Hà said the city faced a critical window to accelerate but stressed that outcomes would depend on execution.

Officials must shift “from reporting achievements to delivering measurable results,” he added.

The push comes as Việt Nam seeks to balance robust economic expansion with macroeconomic stability, a policy stance emphasised by national leaders amid rising global uncertainties. — VNS