VIETNAM, November 2 –
HCM CITY – HCM City’s economy has continued to recover this year, with its regional gross domestic product (GDP) expected to grow 9.4% in 2022, beating its target of 6-6.5%, according to the People’s Committee municipal.
The city’s GDPR rose 9.9% in the first ten months of the year compared to the same period last year.
High growth rates in industrial production, trade and services, and state budget collection in the January-October period reflected strong economic activities, said Phan Văn Mãi, chairman of the People’s Committee .
Despite a strong-performing economy, uncertainties from the global economic slowdown and inflationary pressures will affect the city’s economic growth next year, he said at the committee’s monthly socio-economic meeting on Tuesday.
The city will focus on efforts to speed up the disbursement of public investments which remains slow, he said.
As of October 20, the city’s total public investment disbursement reached VNĐ11 trillion ($443 million), or 29% of the year’s target.
The city will also make efforts to supply the economy with capital amid tighter monetary policy, he added.
Trần Du Lịch, a member of the National Financial and Monetary Policy Advisory Council, said the city’s economic growth has exceeded expectations so far this year, but the economy will face headwinds from the global slowdown in fourth quarter and in 2023.
Disrupted supply chains and rising logistics costs have slowed exports, he said.
He suggested the city should continue to implement measures to speed up economic recovery and support businesses with policies such as tax exemptions and reductions and low interest rates on loans.
Retail sales of goods and services in the city were estimated at VNĐ 899 trillion ($36.2 billion) in the first ten months of the year, up 29.9 year-on-year, according to the city’s Planning and Investment Department.
In October, retail sales of goods and services rose 78.7% year-on-year to VN94.9 trillion ($3.8 billion).
The city’s import-export turnover in the first ten months of the year totaled 40.8 billion U.S. dollars, an increase of 13.4 percent over the same period last year.
It attracted $3.42 billion in foreign direct investment (FDI) between January and October, up 25.3 percent year-on-year.
A total of 693 newly registered FDI projects were worth $443.9 million, an increase of 47.8% in project number and 6.7% in capital compared to the same period last year. —VNS