HCMC leader says economy improving

By Vien Thong   April 28, 2023 | 11:44 pm PT
HCMC leader says economy improving
HCMC's Thu Thiem 2 Bridge linking downtown District 1 and Thu Duc City. Photo by VnExpress/Quynh Tran
The Ho Chi Minh City economy has had many bright spots in April, especially in manufacturing and retail trade, its People’s Committee chairman Phan Van Mai has said.

Speaking at a meeting to review the city’s socio-economic situation Friday, he said the index of industrial production rose by an estimated 3% from March and by 8.1% year-on-year.

Retail sales of consumer goods and services were estimated at VND95.8 trillion (US$4 billion), up 12% and 6.2% against the same period last year.

After rising for the three previous months, the consumer price index fell by 0.11% in April.

According to the HCMC Statistics Office, industrial production was up from March, but many businesses faced a shortage of orders, workers were underemployed and the pressure to pay interest on bank loans remained high.

Real estate, entertainment and dining out activities have yet to recover to pre-Covid levels.

The city attracted less than $1 billion worth of foreign investment in the first four months, a 23.4% decline year-on-year.

The number of newly established enterprises increased by 9.6% but registered capital was down by nearly 25%.

In the year to April 21 public spending was VND2 trillion, or just 4.9% of the amount earmarked for the year.

Mai exhorted government agencies and district administrations to focus on making public services efficient, accelerating administrative reform and improving the investment environment.

By June the city would spend 35% of the earmarked amount and speed up progress of major projects, he added.

HCMC’s gross regional domestic product (GRDP) grew just 0.7 % in the first quarter, the lowest among Vietnam’s five municipal cities.

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