Nguyễn Thị Lệ, chairwoman of HCM City People’s Council, speaks at the 17th session of the People’s Council meeting on Monday. — VNA/VNS Photo

HCM CITY — HCM City is committed to achieving a growth rate of 7.5-8 per cent this year, despite various challenges it faces, a city official said.

Speaking at the 17th session of the HCM City People’s Council meeting on Monday, Nguyễn Thị Lệ, chairwoman of the People’s Council, said the city must overcome obstacles such as bureaucratic hindrances, land clearance issues, and project implementation delays to reach its growth target.

The three-day meeting will focus on strategies to achieve the yearly growth target, including accelerating public spending, improving public services, streamlining administrative processes, controlling inflation, and stabilising the macro-economy.

Particular attention will be given to expediting public spending, boosting consumption, and addressing business challenges in the second half of 2024.

The city has faced challenges in effectively disbursing public funds, resulting in delays in major projects and impeding economic progress.

It fell short of its public investment disbursement target, with only VNĐ15 trillion disbursed in the first half, or 19 per cent of the set target, instead of the expected 30 per cent.

“However, plans are in place to disburse the allocated funds by year-end,” she noted.

The city aims to disburse VNĐ73 trillion, equivalent to 95 per cent of public investment, by year-end, according to Lệ.

In addition, discussions will be held on merging wards within districts to reduce administrative units, as proposed by the city People’s Committee.

Under the proposal, the city plans to merge two or three wards into one among 80 wards in 10 districts, including districts 3, 4, 5, 6, 8, 10, 11, and Bình Thạnh, Gò Vấp and Phú Nhuận districts.

According to the city's Statistics Office, the city grew 6.46 per cent in the first half despite various hurdles it faced.

Its index of industrial production grew 5.6 per cent during the period, the highest increase in the past three years.

The city saw a 10 per cent year-on-year increase in total retail sales of goods and services.

Over 25,200 enterprises entered the market in the city this year, registering VNĐ215 trillion in capital, a 9.6 per cent increase in the number of businesses from the same time last year.

State budget collection was also a bright spot at more than VNĐ265 trillion, accounting for over 54 per cent of the year’s target and up 16 per cent year-on-year.

The city also saw a surge in foreign tourist arrivals, with nearly 2.7 million visitors in the first half, up 38 per cent year-on-year and representing 44.6 per cent of the annual target, driven by a series of festivals and tourism promotion events.

It welcomed over 17 million domestic tourists, up 4.4 per cent year-on-year to reach 45 per cent of the yearly target.

Tourism revenue saw a notable surge of 14.6 per cent during the period, reaching VNĐ92.6 trillion.

In addition, the first metro line (Bến Thành – Suối Tiên) has been 98 per cent completed, with the city aiming to start operations by November.

Analysts have, however, warned the city would need to address multiple challenges in credit growth and the real estate market to achieve the growth target. — VNS