Ho Chi Minh Economic Growth Continues

Developed trade and services, prospered financial activities and efficient economic restructuring transition has again confirmed HCMC’s acceleration and excellent achievements during the past time, especially the first seven months of 2010.  

 

As the leader of the country's economy, in recent years the economy of Ho Chi Minh City has made breakthrough progresses, constantly increasing year after year and contributing highest %age to the GDP growth. Coming to 2010, in dealing with predictable challenges, the city leaders from the early year has highly concentrated in the Government’s five groups of measures which is reflected in implementation by the City with eight solutions to meet or even exceed the determined objectives. The result is that after seven first months of this year, the city economy has gained quite a many encouraging achievements.

 

Chairman of HCMC People’s Committee Mr. Le Hoang Quan said after seven first months of the year, the city economy has recovered and achieved a growth rate which is higher than the average rate of the whole country. Specifically, industrial production value increased to 13.6%, estimated at 323,300 billion. Key industrial sectors with high mental content and added value have seen significant growth (24/27 industries seeing increased growth over the same period). Leading industry is the mechanical engineering with a 31% increase while a 7% decrease in the same period. Next is the electric and electronic products with a 21% increase while a 4% decrease in the same period. These figures can give us a forecast on the restructuring transition of the city’s industrial production sector in a positive way to step by step overcome the “outsourced” situation for a foreign country. In addition, according to the Department of Industry and Commerce, the mechanical engineering industry is making good growth (mainly supersized and superweighted ndustrial equipment) as a basis to affirm the city’s value of industrial production to grow stronger from now to the year-end. And if HCMC strives to push its annual industrial production value to 14%, the total domestic product of Ho Chi Minh City in 2010 is likely to increase over 12%.

 

Consumer goods are well consumed and accounting for the majority of market share. According to the Statistics Department, the city’s gross domestic product increased 11%, while the national average is 5.8%. The city has implemented the program to stabilize prices of essential commodities in the area to fully and promptly meet demands of the people. To do this, following the direction of city leaders, industries, especially companies have developed commercial infrastructure through supermarkets, agents, sale points and trade centers. . Along with this is the effective implementation of the campaign "Vietnamese people use Vietnamese goods." Thus, the domestic consumption market is increasingly expanding with the demand for shopping in supermarkets and shopping centers increasing by 40%. Total retail sales of goods and services increased to 33%, while the same period reached only 17%.

 

Along with the growth in industry and service segments, activities to attract investment, especially FDI has witnessed many signs of flourishing. By the present time, total foreign investment reached 1.19 billion, a 14.88% increase over the same period. Total budget revenues in the area is estimated at 88,294 billion or 61.2% of the year estimate, a 23.3% increase over the same period last year. In addition, the city also welcomed nearly 1.7 million turns of foreign visitors, up 13% over the same period; the City’s tourist revenues of seven months is estimated at 8,220 billion, a 24.3% increase.

 

 In parallel with dynamic rhythm of economic development, socio-cultural aspect continues progressing with carework to the poor and those under policy being paid careful attention, especially material and spiritual life for the people. Education and training has achieved positive outcomes; health care sector has been focused. Several key projects have been completed and put into use to create excitement and confidence for the people.

 

In promoting the achievements gained, in remaining months of the year Ho Chi Minh City focuses its efforts with a view to creating a breakthrough for the restore and increase of economic growth, enhancing growth quality and macroeconomic stability and preventing high inflation from occuring again. Mr. Le Hoang Quan said the city would strive to overcome challenges and take every opportunity to implement the goals of socio-economic development, attempt to achieve 2010 GDP growth of 12% in contribution to increase the whole country’s growth rate of above 6.5%. Accordingly, in the remaining time, the city would continue focusing on five groups of measures set by the Government, promoting production and export, and implementing effective economic restructuring transition. Further improve investment and business climate, creating gravity attracting FDI performance, and at the same time implementing monetary policy to contribute to macroeconomic stability, prevent re-inflation and ensure high growth targets. Continue implementation of price stabilization program for 2010, closely monitoing the market place of goods and services along with enhanced market management. In addition, the City has also focused on review of investment projects using State budget and State budget originated capital, government bonds ... to move towards concentration for important and urgent projects; adjust, recover and remove ‘suspend’ projects and slowly implementing projects.

 

“Destination” time for the country in 2020 is approaching, accordingly the HCMC’s "leading” task in the industrialization - modernization course becomes more severe. The natural result of economic city in seven months has brought much excitement and confidence for the city people in particular as well as the whole country. Although there would be many challenges as predicted for remaining months, with solutions and dynamic running and prompt solving of arising problems, HCMC is believed to soon achieve its goal of economic development of 12% growth rate, controlled inflation, ensured security and order, and at the same time strive until 2020 to become a modern, quickly developed and dynamic city to be worthy of the "Uncle Ho named City" honor.

 

Hong Ha