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HCMC IIP edges up 3.7% in Jan-Oct

The Saigon Times

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HCMC – The Index of Industrial Production (IIP) in HCMC in the first 10 months of this year has increased 3.7% compared to the same period last year, according to the city’s latest socioeconomic development report.

Several key industrial sectors have showed noteworthy growth during this period. The pharmaceutical industry has surged by an impressive 19.2%, mechanical engineering by 7.4%, and electronic equipment manufacturing by 6.0%. But the food and beverage sector has declined by 6.0%.

Despite positive growth in certain areas, the overall 3.7% increase has not yet reached the levels seen in 2019.

The report also highlights some financial challenges. National budget revenues have decreased by 8.1% in the first ten months of 2023, while local budget expenditures have risen significantly. Investment expenses have increased by 31.7%, and recurrent spending has soared by 9.4%.

The city’s economy is being buoyed by retail and tourism sectors, with retail and consumer services revenue reaching nearly VND978.7 trillion, up 9.2% over the same period last year. Total tourism revenue has reached VND140 trillion, up by a substantial 32.6% year-on-year.

The banking sector remains stable, with total capital mobilized by banks reaching nearly VND3.4 quadrillion by the end of October 2023, rising by a slight 0.5% against September and increasing 4.5% from the same month last year. Vietnamese dong deposits have continued to dominate funding sources, comprising 92.2% of the total.

Despite these positive economic indicators, HCMC faces challenges in a rapidly changing global landscape. Global trade and investment have decreased, leading to a 13.4% year-on-year reduction in the city’s export market during the ten-month period. Credit growth has fallen short of targets, and investment stimulus programs have faced disruptions, impacting local enterprises.

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