Foreign tourists take photos of the HCM City People’s Committee building. Việt Nam’s commercial hub is targeting double-digit economic growth this year. — VNS Photo Bồ Xuân Hiệp

HCM CITY — Việt Nam’s commercial hub of HCM City is targeting double-digit economic growth for 2026, a goal that would require generating an additional VNĐ300 trillion (US$12 billion) in output, city officials said on Wednesday, underscoring the scale of the challenge facing the country’s largest economy.

The target was discussed at a meeting of the city’s People’s Committee reviewing January socio-economic performance and setting priorities for February.

Nguyễn Văn Được, chairman of the municipal People’s Committee, said achieving growth above 10 per cent would demand “decisive and coordinated action” across government agencies, businesses and the public, noting that the city could not rely solely on public investment given budget constraints.

With the city’s economy currently estimated at around VNĐ3 quadrillion, reaching the growth target would lift total output to roughly VNĐ300 trillion, he said.

Officials reported that economic activity showed strong momentum in January, supported by consumption, industrial output and exports.

According to the city’s Department of Finance, total retail sales and consumer service revenue rose an estimated 16.4 per cent year on year, reflecting a rebound in domestic demand ahead of the Tết (Lunar New Year) holiday.

The industrial production index increased 29.6 per cent, led by a 34.5 per cent rise in manufacturing and processing.

Export turnover reached $8.1 billion in January, benefiting from trade commitments and tariff incentives, officials said.

However, statisticians cautioned that the strong year-on-year growth figures were partly influenced by the timing of Tết. January last year coincided with the Tết holiday, when many factories suspended operations for nearly two weeks, making comparisons appear more favourable.

“Results for the entire first quarter will provide a more accurate assessment,” said Nguyễn Khắc Hoàng, head of the city’s statistics office.

On public investment, the city reported that 93.6 per cent of its 2025 capital plan had been disbursed by the end of January 2026. For 2026, only 7.2 per cent of the capital plan had been disbursed as of February 2, highlighting pressure to accelerate spending early in the year.

Domestic business activity strengthened, with 5,045 new enterprises established in January, up 50.6 per cent from a year earlier. By contrast, foreign direct investment fell 62.1 per cent year on year to nearly $373 million, official data showed.

City leaders said departments and districts would be required to submit detailed plans, clarify accountability and accelerate project implementation to support growth in the coming months. — VNS