Ho Chi Minh City enjoys strong economic recovery

In May, the southern metropolis’s Index of Industrial Production (IIP) surged by 6.5% over the previous month and 9% on-year. As a result, the city’s IIP in the first five months of the year grew by 2.6% annually.

Sharp increases were recorded across many sectors, including processing-manufacturing at 44.8% and rubber and plastic product production 33.1%.

A representative from the municipal Department of Industry and Trade said that trade and service activities in the city had started to recover several months ago. Despite the strong increase in petrol prices, local firms have struggled to overcome difficulties caused by the rise in material prices and they seek to move towards recovery and development, said the representative.

Statistics highlight that total revenue from retail and service activities in the southern city in May hit VND96.28 trillion, equal to US$4.15 billion, up 0.8% over April and 10.4% compared to the same period from last year. In the first five months of the year, this figure had reached VND456.15 trillion, equivalent to US$19.67 billion, a year-om-year rise of 0.6%.

Local firms attributed this increase to recovery occurring in the number of tourist arrivals following the Government deciding to fully open the tourism sector from March, especially during the 31st Southeast Asian Games, as well as the increase in wedding party bookings.

Meanwhile, the expansion of online shopping, coupled with the development of logistics technologies, have boosted trade activities. The country therefore ranks second in Southeast Asia in terms of e-commerce, with the sector’s value forecast to reach US$39 billion in 2025.

As of the end of the first quarter of the year, over eight million consumers in the nation became involved in online shopping, 55% of whom come from urban areas. A survey indicates that 99% of them intend to continue to shop online moving forward.