HCM City’s economy grows steadily
(VOV) - Ho Chi Minh City’s economy has rebounded and grown steadily with high growth rates in gross domestic product (GDP), budget collection and foreign investment attraction in the first half of this year.
These important results created a solid foundation for the city to fulfill socio-economic development targets for 2014, said the municipal People’s Committee Le Hoang Quan.
The city made significant achievements in six months, with GDP grossing VND378,915 billion (up 8.2% over the same period last year), budget collection fetching VND121,910 billion (up 14.9%), industrial production index rising 5.6% and total retail goods and services turnover expanding 12.8% to VND312,147 billion.
Vu Trong Hoa, Director of the municipal Institute of Development Studies (IDS), said the retail index demonstrates the uptick in the consumption trend, contributing to raising aggregate demand for the economy.
The city’s exports were estimated at US$14.182 billion, a year-on-year increase of 5.72% while imports fell 2.2% to US$12.44 billion. Its trade surplus has helped improve the country’s trade balance, Hoa said.
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The June consumer price index (CPI) inched up modestly by 0.58% compared to the previous month. Low CPI and abundant goods and services demonstrate that the city has well implemented measures to contain inflation, and ensure the market law of supply and demand.
Thai Van Re, Director of the Municipal Department of Planning and Investment, reported that by June 21, the city had granted licences to 169 new projects capitalized at US$967 million and approved another 53 operational projects registering to increase their capital by US$110 million. Overall, total investment capitalisation grew by 202% to US$1.08 billion.
Current tensions in the East Sea have directly affected the city’s trade with China, especially for key products like rice, vegetables and fruit, cotton, garment and footwear accessories, fertilisers, and materials for production.
According to municipal leaders, it is time for the city to restructure the business market, and improve internal strength.
The city has devised nine solutions for fulfilling targets set for this year, including developing the support industry to minimise imports from one market, accelerating trade, investment, tourism and services promotions, and updating businesses on potential markets.
IDS Vice Director Tran Anh Tuan said the city should quickly shift import-export markets to other ASEAN countries, instead of heavily relying on China.
At a recent meeting with State President Truong Tan Sang, businesses reported they are gradually restructuring production, and seeking to use more domestic input materials.