Mr. Phan Van Mai: Ho Chi Minh City's economy is projected to grow by 5.87% in the second quarter.

The Chairman of the People's Committee of Ho Chi Minh City stated that the city's economic growth in the second quarter is projected to reach 5.87%, and the overall growth for the first half of the year is 3.55%.

"Good news" regarding Ho Chi Minh City's growth was mentioned by Mr. Phan Van Mai during a group discussion at the National Assembly on the afternoon of May 30th.

According to him, the latest forecast from the General Statistics Office shows that the city's growth in the second quarter is 5.87%, because the city recorded a growth rate of only 0.7% in the first quarter, so the overall growth for the first six months is estimated at 3.55%.

Specifically, the industrial and construction sector is projected to grow by 4.77% in the second quarter. However, due to a sharp decline in this sector in the previous quarter, the overall growth for the first half of the year is only 0.8%. The service sector is the highest-performing sector among all groups and sectors, with a forecast of 7.6%. The overall growth for the first six months is 4.96%.

"This is a tremendous effort by the political system and the people of the city. This result is very gratifying," Mr. Mai said.

Mr. Phan Van Mai, Chairman of the People's Committee of Ho Chi Minh City, speaks at a group discussion on the afternoon of May 30. Photo: Hoang Phong

The Chairman of Ho Chi Minh City acknowledged that the economy of the "leading city of the country" showed signs of improvement in May. Wholesale and retail sales of goods, as well as revenue from services and tourism, increased significantly. Meanwhile, many promotional programs launched by the city and businesses during the three summer months helped stimulate tourism demand.

Thus, after a sharp decline in economic indicators in the first quarter of the year, Ho Chi Minh City has regained its growth momentum.

Previously, a report from the Ho Chi Minh City Statistics Department on May 29th also indicated that industrial production was improving, consumer spending was increasing, and accommodation and tourism activities were rising. Specifically, the industrial production index (IIP) in May was estimated to increase by 1.5% compared to April and by 5.5% compared to the same period in 2022. Overall, the IIP for the first five months increased by 1.6% compared to the same period last year.

Total retail sales of goods and consumer service revenue in May also increased by more than 10% compared to May 2022, bringing the cumulative increase for the first five months of the year to 6.2%. Over the past five months, disbursement of investment capital from the budget is estimated at nearly 10,200 billion VND, an increase of more than 24% compared to the same period last year. In the last two months alone, Ho Chi Minh City has accelerated strongly, disbursing over 8,000 billion VND.

According to Nguyen Khac Hoang, Director of the Ho Chi Minh City Statistics Department, with specific solutions implemented, the city's economy is showing promising development. He predicted that by the end of the second quarter, many economic development indicators of the "country's leading economic engine" will show high growth, potentially bringing the results for the first half of the year to even higher than the city's highest-case scenario.

At the "Conference on the socio-economic situation in May 2023, the first five months of the year, and key tasks and solutions for June 2023" of the Party Committee of the People's Committee of Ho Chi Minh City on May 29th, the Secretary of the Ho Chi Minh City Party Committee, Nguyen Van Nen, also assessed that the local economy showed positive signs of recovery and relatively strong growth.

However, Mr. Nên also noted that the global situation remains volatile, complex, and unpredictable, with many aspects and fields directly impacting the city. This requires continued attention, monitoring, forecasting, and planning for scenarios to adapt to new and unpredictable challenges.

In fact, over the past five months, the situation regarding newly established businesses and attracting foreign investment has remained weak. Accordingly, the number of licensed businesses in the area increased by 7.9%, reaching 18,630, but capital decreased by 21.2% compared to the same period last year. Meanwhile, total foreign investment attracted amounted to $1.14 billion, a decrease of 13.5% compared to the same period in 2022.

According to Ms. Le Thi Huynh Mai, Director of the Ho Chi Minh City Department of Planning and Investment, the city has focused on resolving obstacles related to public and private investment, but some aspects have not yet met expectations. Therefore, the city will continue to address these difficulties in the future. Regarding accelerating public investment, the department recommends reviewing and adjusting some projects that have not completed preparation work or have unresolved internal difficulties.

Mr. Minh

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