Phan Văn Mãi (standing), chairman of the city People’s Committee, speaks at a meeting on the city’s socio-economic results in April on Friday. VNA/VNS Photo

HCM CITY — Though HCM City’s economic recovery faces hurdles, there were several bright spots in its socio-economic performance in April, including a 12 per cent rise in total sales of consumer goods and services from the previous month.

Speaking at a meeting on Friday, Lê Thị Huỳnh Mai, director of its Department of Planning and Investment, said sales of consumer goods and services were worth nearly VNĐ96 trillion (US$4.1 billion). It also marked a 6.2 per cent increase year-on-year.

The index of industrial production (IIP) in April increased by an estimated 3 per cent from March and 8.1 per cent year-on-year.

Tourism revenues increased by 71.6 per cent year-on-year to VNĐ15 trillion, she said.

The city’s revenues in the first four months were worth VNĐ170 trillion, or 36 per cent of the year’s target, she added.

Challenges

Speaking at the event, Phan Văn Mãi, chairman of the city People’s Committee, said the global economic decline and inflation have affected all of the city’s economic sectors, stymieing its recovery.

The real estate, stock and bond markets have slumped amid monetary tightening, he said.

Many enterprises suffer a lack of export orders due to weak global demand, and the situation seems unlikely to improve this year.

Many businesses complain it is difficult for them to get bank credit.

Mãi said the city would continue to take measures to support companies and workers, and seek ways to supply the economy with capital.

For instance, it has a programme to bring together lenders and firms for providing credit, he said.

“One of the most important tasks is speeding up public spending.”

As of April 21 public spending was worth VNĐ2 trillion, or 5 per cent of the allocation for the year. 

Foreign direct investment was worth nearly $980 million in the first four months, down 23.45 per cent year-on-year.

Exports were estimated at more than $3.6 billion in April, down 3.6 per cent from the previous month, and $13.025 billion in the first four months, down 19.8 per cent.

Some 14,750 enterprises were established in the city with a total registered capital of nearly VNĐ145 trillion in April, down 9.6 per cent and 25 per cent from the same period last year.

The city’s economic output was worth VNĐ360 trillion ($15.38 billion) in the first quarter, only marginally up from a year ago, according to its Statistics Office.

Its growth rate was very low compared than the national average, ranking it 56th out of 63 cities and provinces in the nation. 

The city has lowered its growth target for 2023 to 7.5-8 per cent from 9 per cent last year.

Việt Nam’s GDP growth slowed to 3.32 per cent year-on-year in the first quarter, the second lowest rate in the last 12 years. — VNS