HCMC’s economy has seen signs of good recovery. In the first 2 months in 2013, the city’s industrial production has gone up by 3.2 percent, doubling that of the first 2 months in 2012. Since the beginning of the year, the City People’s Committee has worked with local enterprises, most of whom showed a better outlook than in 2012 and many of them have planned production expansion. These results were released by Mr Le Hoang Quan, Mayor of HCMC People’s Committee, in the workshop of socio-economic evaluation in the first 2 months of 2013.
14 out of 26 sectors have seen increase in Index of Industrial Production (IIP), among which some have high growth rate such as food processing, beverage, footwear and construction materials. According to the Saigon Industry Corporation, its production units have started their plan implementation quite well with signs of increase in numbers of partners, customers and orders; which make it possible to beat the growth rate of 15 percent against last year.
The turnover that Saigon Co.op earned in the first 2 months was over VND3 trillion, exceeding by 14 percent year on year. Saigon Co.op is assigned to valorise necessary goods in HCMC and 22 provinces and cities nationwide, stable purchasing power has demonstrated the economic recovery.
In the first 2 months, the city’s retail sales of goods and services were estimated at VND93,821 billion, increasing by 10.2 percent. If price fluctuation is excluded, the volume of goods and services consumed has been up by 6.4 percent year on year.
The city’s export value since the beginning of the year was estimated US$4.49 billion, up by 21.4 percent against that of 5.6 percent last year while the import value reached US$3.43 billion, up by 12.4 percent year by year. Increase in material and input import and boosted export have forecast good production recovery.
Also in the first 2 months, the city has received 701,000 foreign visitors, up by 8.6 percent, and total turnover was estimated nearly VND14 trillion, up by 22.2 percent. Total foreign investment, including capital increase, in the city at this time is US$66.5 million, up by 14.4 percent year on year. There have been 2,684 businesses issued license for operation with total registered capital of over VND11,360 billion (up by 10 percent in quantity and down by 23 percent in registered capital).
Meanwhile, Consumer Price Index (CPI) only witnessed 1.44 percent increase over both months, thank to the effective implementation of city’s market stabilization program which helps to maintain consumer prices. Export turnover was US $4.49 billion, up by 21.4 percent, IIP went up by 3.2 percent, doubling that of first 2 months in 2012; agro-forestry-aquatic production value saw growth rate of 6.8 percent.
Concerning domestic investment, the city licensed 2,684 businesses with total registered capital of VND11,361 billion, while in the foreign investment sector, the city licensed 41 projects with total over US$44 million. It was evaluated by the City People Committee that in the first 2 months this year (concurring lunar Tet holiday), the socio-economic conditions were stable. In comparison with the first 2 months in 2012, retail sales of goods and services have witnessed the growth rate of 10.2 percent (which would be 6.5 percent upon exclusion of price fluctuation).
Notably, it was reported by the Department of Finance, contribution to state budget in the first 2 months was only VND33,000 billion.
At the meeting, Mayor Le Hoang Quan of HCMC People’s Committee requested departments, sectors and districts to quickly to speed up construction progress of key projects funded by or involved with state budget in the city; focusing on implementing and disbursing allocated funds. The city has assigned construction and investment plan in 2013 (phase 1) involved with state budget, funds from lottery revenue and Official Development Assistance (ODA) with total allocated amount of VND16,770 billion.
Among those, prioritized counterpart funds allocated to ODA projects were VND569 billion; site clearance costs for construction of urban railways No.1 and No.2, route Tan Son Nhat – Binh Loi – ring road, road projects connecting East-West Highway and HCMC Highway – Dau Giay, and connecting East-West Highway to HCMC Highway - Trung Luon made up VND 1,542 billion; costs for completed projects were VND1,257 billion; funds for projects to be completed in 2013 was VND 4,439 billion; and funds for those newly initiated was VND1,996 billion.
“This demonstrated difficulty in collection and expenses of state budget, thus the Department of Finance and Bureau of Taxation are requested to review taxation sources, examine and report to the city about exemption and deduction of taxation for enterprises for contingency plan,” said Mayor Le Hoang Quan.
At the workshop, enterprises have discussed measures to boost socio-economic development in March, in which focus is laid on curbing inflation, stabilizing the macro-economy, releasing land fund for investment attraction, encouraging production and business, reducing traffic accidents and preventing fire.
For conclusion of the workshop, Mayor Quan instructed agencies and departments to continue addressing difficulties in enterprises’ production and business, handle inventory, bad debts, and stabilize markets to stabilize economic conditions and follow social welfare policies.
P.V
Vietnamese
