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Friday, July 19, 2024

HCMC’s GRDP growth below expectations

The Saigon Times

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HCMC – HCMC’s gross regional domestic product (GRDP) is far below the 2023 target, so the city will have to make every effort to improve the performance of its economy in the final months of the year, said Nguyen Van Nen, secretary of the HCMC Party Committee.

At the meeting on HCMC’s January-September socio-economic performance, the HCMC Department of Planning and Investment reported that the city’s GRDP growth in the third quarter is 6.71%, which is higher than in the previous two quarters.

However, the overall growth rate for the first nine months of the year is a mere 4.58%, significantly lower than the full-year target of 7.5% to 8%.

Nen acknowledged that the city had a slow start to the year, resulting in poor performance in the first quarter. However, efforts from various departments and agencies have led to better results in the second and third quarters.

Pham Trung Kien, deputy director of the HCMC Department of Planning and Investment, highlighted some positive indicators. Despite difficulties, the index of industrial production (IIP) of the city has increased by 3.2%, with key industrial sectors growing by 5.8%.

Total retail sales of goods and services are estimated to have expanded by 8.6%, and total tourism revenue has surged by 35.8% compared to the same period last year.

In the year to date, the city has seen 7,224 new businesses set up, a 13% year-on-year increase. However, foreign direct investment inflows have dropped by 34.1% year-on-year, with the city attracting nearly US$2 billion.

Regarding public investment disbursement, the city has disbursed more than VND20.5 trillion by September 22, reaching only 30% of the total allocated capital. The slow disbursement is attributed to delays in compensation, land clearance, resolution of investment and construction procedures, and limitations in the capabilities of some investors and construction units.

Given this situation, Nen called for greater efforts from relevant departments and agencies to accelerate public investment disbursement in the final quarter of the year.

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