HCMC economic growth at five-year high

It beat the 5.5% growth forecast by experts, according to the Statistics Office of Ho Chi Minh City. The previous highest Q1 rate was 4.58% in 2021. Last year it had only grown at 0.7%.

The services sector contributed the most to the growth with an expansion of 7.34% year-on-year, according to official data.

Two other pillars of the city’s economy, industry and construction, expanded by 5.66% while agriculture, forestry and fisheries achieved growth of 0.85%.

For every new business entering the market, one shut down, representing a 1:1 ratio, worse than the 1:0.9 in the same period last year, it added.

Loans outstanding increased by 8%. Nguyen Khac Hoang, head of the statistics office, said the city should focus more on domestic consumption as exports are sluggish.

Public investment also needs to be promoted, he said. This year the city has only spent VND5.6 trillion ($2.26 million), or 7.1 of the full-year public investment, while the target was nearly VND8 trillion.

Looking at the remainder of the year, a high growth rate will be difficult to achieve since it will be from the high base of last year. This year city targets growth of 7.5-8%.