HCMC leader says economic growth must top 7% in H2 to hit target

By Vien Thong   July 2, 2024 | 02:30 am PT
HCMC leader says economic growth must top 7% in H2 to hit target
Downtown District 1, Ho Chi Minh City, February 2023. Photo by VnExpress/Quynh Tran
HCMC’s economy must expand by more than 7% in both the third and fourth quarters to meet the full-year growth target of 7.5-8%, its chairman has said.

Growth slid from 6.54% in the first quarter to 6.31% in the second, Phan Van Mai, chairman of its People's Committee, said at a press conference Monday afternoon.

The decline was due to tardy public investment and weaker performances by the industry and services sectors.

According to Nguyen Khac Hoang, director of the city Statistics Office, the processing and manufacturing segments saw lower-than-expected growth in the second quarter.

The construction sector, which was strongly tipped to expand, did not due to the lack of public spending and sluggish property market, he said.

As of the end of June public spending was only 13.8% of the allocation for the full year, he said.

Consumer spending grew by only 10%, down from the 12.2% seen in the first quarter, despite a slew of measures to stimulate demand, he said.

"Overall, most sectors’ growth rates were lower than the national average."

Mai said all districts had to make the best efforts to promote growth to accelerate economic expansion in the remaining half and achieve the annual target.

Expert teams have been formed to speed up public spending and resolve issues hampering private investment, he said.

The city would organize investment promotion programs, he promised.

To bolster the services sector, the Department of Tourism has been tasked with planning festivals and events to grow tourism.

Dr Truong Minh Huy Vu, deputy director of the HCMC Institute for Development Studies, said the city often sees stronger growth in the second half, and so full-year growth is expected to reach 6.8-7%.

"If we strive harder, achieving the annual target is still possible."

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