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Ho Chi Minh City
Thursday, October 6, 2022

HCMC seen beating GRDP growth target

By Le Hoang

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HCMC – Given the sustained economic recovery, HCMC is expected to beat its gross regional domestic product (GRDP) growth target of 6-6.5%.

During a meeting on the city’s socio-economic performance in August, Phan Van Mai, chairman of the HCMC People’s Committee, said the city has maintained its economic recovery momentum.

According to Mai, the city’s GRDP, which measures the economic growth of a specific region, could exceed the goal set at the beginning of the year.

Nguyen Khac Hoang, director of the HCMC Statistics Office, said that the city’s industrial output index climbed by 14.8% in the first eight months, with growth expected to be stronger in the third quarter than in the second.

Budget revenues of HCMC reached 80% of the full-year target of VND386,500 billion. The retail sector grew at a rapid pace of 23.2%, particularly accommodation and food service.

The city’s foreign investment capital amounted to US$2.71 billion in the first eight months, the highest in five years. The number of newly-established enterprises increased by 33.4% versus last year.

However, there have been signs of unsustainable revenue growth as the rise in budget revenue primarily came from housing and crude oil, Hoang said.

The city’s public investment disbursement rate has been below expectations, at 22.3% of the planned amount. Meanwhile, cumbersome issues persist in the administrative procedures.

For businesses, the recovery and stimulus packages given by the city have faced certain hurdles in the implementation phase. Some industrial enterprises saw a decline in production and export value.

To address the issues that arise, Mai underlined the need to strengthen coordination across departments, agencies and localities.

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