HCMC eyes minimum 8% economic growth in 2025

By Vien Thong August 15, 2024 | 02:21 am PT

Ho Chi Minh City targets an economic growth rate of 8-8.5% next year, with digital economy accounting for at least a quarter.

An 8.5% growth in gross regional domestic product will be the city’s second highest expansion rate in the last five years, behind only 2022’s 9.03% increase from a low base due to Covid-19.

To achieve the target, HCMC eyes to raise VND422 trillion ($16.83 billion) in private investment next year, up 14% from 2023, according to a decree signed by chairman Phan Van Mai recently.

It plans to speed up public investment and attract more foreign investment in industrial parks. It also wants to increase cooperation in trade and improve the local business environment.

This year HCMC targets 7.5% economic growth, a goal which analysts have found to be challenging, given that it only achieved 6.5% and 6.3% respectively in the first and second quarter.

The city will need to post at least 8.5% growth in the third and final quarter this year to achieve its annual target.

HCMC also eyes to be a major services hub in Southeast Asia and Asia.

Services accounted for 64% of the city’s gross regional domestic product in 2022, up from 57.5% in 2010. The remaining components of its economy are mostly agriculture-forestry-seafood and industry-construction.