Vietnam's economy grew beyond expectations in the first six months of the year thanks to a positive recovery in the manufacturing and service sectors. However, among the top-performing localities, the most significant contribution to the overall national growth was lacking from the leading economic hubs.
Ranked from highest to lowest, seven localities achieved double-digit growth in Gross Regional Domestic Product (GRDP): Bac Giang, Khanh Hoa, Thanh Hoa, Ha Nam, Hai Phong, Tra Vinh , and Hai Duong. Thus, among the top seven localities with the highest growth rates nationwide, only one centrally-governed city, Hai Phong, is included.
Notably, the provinces and cities that achieved this speed... GRDP growth The highest growth rates in the first six months of the year were largely contributed by the processing and manufacturing industries. Meanwhile, localities that are traditionally economic "engines" such as Ho Chi Minh City, Hanoi , Da Nang, and Can Tho all experienced growth below their potential, lower than or equal to the national average.
There are many reasons why leading economic hubs are slowing down. In Da Nang, tourism activities have been significantly impacted by the global economic downturn, affecting visitor flows and reducing spending by international tourists; tourism businesses still face difficulties in securing capital for reinvestment, land lease fees, etc., to upgrade tourism products as well as invest in new ones; and production and business activities of enterprises are still struggling due to declining orders.
In Ho Chi Minh City, total social investment increased slowly, the economy's ability to absorb capital faced many difficulties; the profit margins of enterprises decreased and are forecast to continue to be affected by the difficulties of the global situation; revenue from import and export decreased; the disbursement of public investment capital remained limited; the real estate market recovered but not strongly enough to contribute to the growth of the service sector; consumer demand has not recovered to pre-Covid-19 pandemic levels…
In the context of a thriving economy across many sectors and accelerated growth in localities, the slowdown in growth of key economic hubs is a phenomenon that requires careful attention in order to find effective solutions and bring these localities back onto a high growth trajectory.
In the context of a thriving economy across many sectors and accelerated growth in localities, the slowdown in growth of key economic hubs is a phenomenon that requires careful attention in order to find effective solutions and bring these localities back onto a high growth trajectory.
For the economy to achieve a growth rate higher than the target, in addition to increasing aggregate demand, promoting the disbursement of public investment capital, and fostering new growth drivers, impetus from leading economic engines is essential for the entire economic train to accelerate and break through to the finish line.
In its year-end operational plan, the Government has requested ministries, sectors, and localities to decisively improve the investment and business environment, contributing to attracting and effectively utilizing investment capital, promoting growth in key economic hubs such as Hanoi, Can Tho, Da Nang, and Ho Chi Minh City at a higher rate than the national average, and increasing the ripple effect on other regions and the entire country.
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