HCM City’s economy hits sharpest decline on record

Ho Chi Minh City’s economy shrank by 6.78% in 2021, the sharpest yearly decline on record, according to the municipal Statistics Office, as stringent COVID-19 restrictions took their toll.

At a press briefing on December 29, Tran Phuoc Tuong, head of the office, said though the economy shrank to VND1.29 quadrillion (US$56.55 billion), revenue collections surpassed the year’s target to reach VND383 trillion (US$16.79 billion), an increase of 3% from 2020.

The consumer price index in December increased by 1.24% compared to the same period last year, taking prices up 2.36% year-on-year in 2021.

The office said all sectors had seen a decline, with agro-forestry-fishery shrinking by 13.68%, industry and construction by 12.96% and services by 5.5%.

The index of industrial production plummeted by 14.3%.  Manufacturing shrank by 14.7% and electricity production and distribution by 4.9%.

The surge in tax  collections was attributed to growth in the real estate, finance and banking and securities sectors and the impact of Decree 52/2020/ND-CP on the extension of deadlines for tax payment in April.