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HCMC’s growth target hard to achieve
Le Anh
Wednesday,  Oct 4, 2017,19:37 (GMT+7)

HCMC’s growth target hard to achieve

Le Anh

HCMC – Although HCMC’s economic growth rate in the period of January-September was higher than the same period last year, it will not meet the full-year target of 8.4-8.7% unless the growth rate in the fourth quarter reaches 9-9.5%.

At the 14th meeting of the 10th Party Committee of HCMC yesterday, Party secretary Nguyen Thien Nhan said this target would be hard to achieve.

According to a report of the HCMC People’s Committee, the city’s gross regional domestic product (GRDP) in January-September reached more than VND775.8 trillion (US$34.13 billion), up 7.79% year-on-year, or three basis points higher than the rate of 7.76% recorded in the year-ago period.

Particularly, the service sector increased by 7.7% year-on-year, industry and construction up 7.7% year-on-year, and agriculture 6.2%.

The service sector still accounted for the largest part of the city’s GRDP with 57.2%, while industry and construction contributed 25.1%, agriculture 0.7% and excise taxes less subsidies on products 17%.

Party deputy secretary of HCMC Tat Thanh Cang said the city’s economic growth rates in recent quarters were slowing down versus the country’s GDP growth rate acceleration, which seems abnormal.

According to Cang, the city’s economic growth depends mainly on trade and manufacturing. However, these two sectors’ growth rates in the first nine months of 2017 were lower than in the same period last year.

“To boost economic development and meet the full-year target, the trade and manufacturing sectors must achieve two-digit growth rates in the year’s last quarter,” Cang added.

Su Ngoc Anh, head of the HCMC Department of Planning and Investment, said some segments reporting weak growth in January-September included rubber, pharmaceutical chemistry and leather industries.

Segments achieving high growth rates included finance, science and technology, healthcare, and education. Anh said these are the city’s key segments that need special treatment to maintain the overall growth rate. 

To achieve the 9-9,5% growth target in the last quarter, the city should focus on helping businesses ride out difficulties and developing supporting industries, said director of the HCMC Department of Industry and Trade Pham Thanh Kien at the meeting.

For services and trade, Kien suggested the city carry out price stabilization programs and ensure sufficient supply of goods for the upcoming Lunar New Year holiday.

Secretary of the HCMC Party Committee Nguyen Thien Nhan said the city’s trade deficit this year might reach over US$6 billion. The city needs to promote exports to narrow the trade deficit, or else its economic development will be significantly affected.

In addition, Nhan suggested HCMC take specific measures to offer land rental rates competitive against those in nearby localities like Binh Duong and Dong Nai to attract more business investment into the city.

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