HCMC economic outlook positive in H2

By Vien Thong January 3, 2024 | 03:32 am PT

Downtown Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Ho Chi Minh City’s economic outlook is estimated to improve in the second half of the year, but challenges will remain in the first, according to a new report.

Changes in monetary policies often have quick impacts on the city, which is often referred to as Vietnam’s economic locomotive, and therefore fluctuations of the Vietnamese dong against the U.S. dollar and the Chinese yuan will have a direct influence on trade, especially among foreign direct investment companies, said a report by the University of Economics and Law under the Vietnam National University HCMC.

HCMC posted a GRDP growth of 5.81% last year, down from 9.03% in 2022.

The city targets a growth rate of at least 7.5% this year.

Analysts of the University of Economics and Law proposed that HCMC should partner with nearby localities such as Binh Duong and Tay Ninh to create an economic triangle.

Tay Ninh can provide power, water, agriculture and carbon credits, while Binh Duong can be its extended industrial and exports hub.

HCMC recorded an industrial index growth of 4.3% last year, higher than the national average. Services surged by nearly 6.8%.

Agriculture and seafood rose 1.53% while industrial industry and construction rose 4.42%.

Tourism revenue rose 25% from 2019 (before Covid-19) to VND160 trillion ($6.56 billion).