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HCM City announces GDP growth target of 10%

Update: March, 29/2014 - 09:21

HCM CITY (VNS)— The country's largest economic hub, HCM City should work harder during the rest months of this year to complete the whole-year GDP growth target of 9.5 to 10 per cent, though the economy has recently proved positive signal.

The city's leaders have placed the target to achieve a GDP growth of 9.5-10 per cent in 2014, 1.5 times higher than the national rate.

During a meeting yesterday to review economic situation of the first quarter, Le Hoang Quan, head of HCM City's People's Committee, commented that the city's economy has been stabilised with GDP growth recorded at 7.7 percent, 1.5 times higher than the national rate.

The consumer price index (CPI) of this month reduce 0.46 percent, the lowest rate in ten years, Quan said, adding that the city tries to suppport the country's target to control inflation rate below six percent.

With recovered economy, the city's State budget income in the first quarter this year is reported at VND60.498 trillion, an increase of 16.7 percent in compared with the same period last year.

"In the first quarter of 2013, city's State budget income was roughly VND53 trillion. The recovered economy leads the increase of State budget income in the city," he said.

However, Quan also warned about the heavy tasks during the rest quarters of this year.

In order to get the GDP development rate of last year at 9.3 percent, the city should achieve GDP growth rate in second quarter at more than 8.1 percent, third quarter, 10.3 percent and the last quarter 10.7 percent.

"This year's GDP growth targeted between 9.5 and 10 percent, so GDP growth rate of the second quarter should be over 9.7 percent. In order to achieve the target, the whole city has to work hard during the the rest nine months," he said.

To achieve that, it is important to accelerate the implementation of a programme to support economic restructuring, improve the business environment, raise the enterprises' competitiveness, according to the chairman.

According to Vo Si, deputy director of HCM City's department of Planning and Investment, 5,194 domestic enterprises were granted investment licenses in the city during the first three months.

Also in the same period of time, 75 foreign direct invested enterprises were authourised in the city, with registered capital of US$690 million, an increase of 11.6 times against the same period last year, Si added.

Despite of the growth of GDP and higher number of new enterprise, the volume of both import and export was reported as reduce in the first quarter. The export value reached $6.3 billion, a reduction of seven percent in compared with the same period last year, according to the department.

Si explained that the export fall of industrial product and crude oil has contributed to the drop of overall export value. Recently, instead of exporting, crude oil has been transferred for being refined in domestic.

The city's chairman requested relevant authourities to conduct a comprehensive evaluation on the export situation in the city for better solutions in the up-coming times.

Meanwhile, the import value during the first quarter reached US$5.4 billion, a reduction of six percent in compared with the same period last year. Most of the imported products are computers, electronic products, milk and products from diary.

With brighter world economy, it's possible for the city to reach the GDP growth target at 9.5 to 10 percent placed by the city's Party Committee, Vo Van Luan, Chief Office of HCM City's People's Committee told local media during a press briefing after the meeting.

However, the biggest challenges for the city to realise the target were the market and capital sources, Luan said.

Related to the development of Thu Thiem New Urban Area, land clearance has been done at 90 per cent. The city is revoke the rest part of land in the area. According to the city, during the first quarter this year, the city has revoked 11 plots of land with total area of 1,300 square metres. — VNS

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