HCM City's economic growth to reach 6-7 per cent this year

October 11, 2023 - 18:08
HCM City’s economic growth is projected to reach between 6-7 per cent this year, its leader said.
A view of HCM City’s skyline seen from Thủ Thiêm new urban area in Thủ Đức city. — VNS Photo Bồ Xuân Hiệp

HCM CITY — HCM City’s economic growth is projected to reach between 6-7 per cent this year, its leader said.

Speaking at a meeting on Tuesday, Phan Văn Mãi, chairman of the municipal People's Committee, said the city will prioritise expediting public spending, boosting consumption, and resolving the challenges faced by businesses in the remaining months of 2023.

The city’s gross regional domestic product (GRDP) reached 4.57 per cent in the first nine months, which falls short of the 2023 growth target of 7.5-8 per cent. However, Mãi is optimistic about the 2023 socio-economic outlook.

According to international organisations, Việt Nam’s 2023 growth rate is estimated to reach between 5-6 per cent, with HCM City typically surpassing the national average by 20 per cent.

“Considering the country’s overall growth rate, the city’s growth rate could reach a maximum of 7.3 per cent,” he noted.

According to the city's Statistics Office, to achieve a GRDP growth rate of 7.3 per cent in 2023, the city must increase its growth by 15 per cent in the last quarter.

Tasks for rest of 2023

To attain its target growth rate for the year, Mãi said the city would continue accelerating public spending and stimulating end-of-year consumption in the last months.

As of October 10, it has disbursed VNĐ20.5 trillion (US$889 million) worth of public investment, or only 38 per cent of its 2023 public investment plan.

“While achieving the target of 95 per cent is challenging, the city is determined to disburse over 80 per cent in 2023,” Mãi stated.

The city will continue to facilitate private investment, particularly in attracting investors to high-tech industries.

Resolving issues faced by real estate businesses will also be a focus until the end of the year, according to Mãi.

Retail sales and consumer service revenue reached VNĐ871 trillion ($37.6 billion) in the first nine months, up 8.6 per cent year-on-year.

More than 37,200 new enterprises were established in the period, indicating a rise in quantity yet a decrease in registered capital.

Foreign direct investment (FDI) reached nearly $2 billion in the period, down 34.1 per cent year-on-year.

The city's exports continue to encounter difficulties due to declining demand and a shrinking market. — VNS