HCM City – Ho Chi Minh City’s economy is demonstrating sustained growth, predominantly propelled by factors such as industrial production, local consumption, and a consistent supply-demand balance, as conveyed during a recent gathering of the municipal People’s Committee held on October 30.
According to Vietnam News Agency, Director Le Thi Huynh Mai reported that Ho Chi Minh City’s industrial production index for October witnessed an increment of 2.4% from the previous month and an impressive 10.6% growth on an annual basis.
In terms of specific industries, the mining sector reported growth figures of 6.1% monthly and 8.9% annually. The processing and manufacturing industries expanded at rates of 2.5% monthly and 11.1% yearly, while the electricity production and distribution sector, despite a 1.1% decline from last month, saw an annual rise of 5%.
Aggregating data from the initial ten months, the overall index showed a 3.7% annual surge. When focusing on the city’s four primary industries, industrial production grew by 6.3%. To break it down, there was a 19.2% hike in the pharmaceutical industry, 7.4% in the mechanical sector, and 6.0% in electronics.
Retail sales of both goods and services during this period amounted to approximately 978.6 trillion VND (around 40.77 billion USD), marking a 9.2% ascent compared to the corresponding period in the previous year.
Tourism metrics also trended upwards, with foreign tourist arrivals in the city reaching over 4.12 million, a growth of 55.3%. Consequently, the total earnings from tourism exceeded 140 trillion VND, indicating a year-on-year growth of 32.6%.
As of October 20, Ho Chi Minh City approved the establishment of 42,670 new businesses, reflecting a 15.2% annual growth, with a cumulative registered capital surpassing 386.5 trillion VND.
On the public investment front, disbursements were valued at more than 36 trillion VND, showing a 55.9% annual increase.
However, there were certain areas of concern. Director Mai highlighted a 13.4% annual decline in exports over the last 10 months. Moreover, while the quantity of new firms increased, their registered capital diminished. Alarmingly, businesses opting for temporary cessation of operations grew by 29.5%. Furthermore, foreign direct investments dipped significantly by 32.3%, amounting to just around 2.31 billion USD.
Phan Van Mai, Chairman of the municipal People’s Committee, stressed that in the year’s closing months, the city’s priority would be to address challenges confronting businesses and the real estate sector. Additionally, there are plans to amplify infrastructure and urban development, boost consumer demand, and bolster tourism. He emphasized the city’s dedication to achieve a public investment disbursement of 95% of the set target and stipulated that projects encountering specific hurdles should strive for a disbursement rate exceeding 80%.