HCM City to face economic challenges, recovery to be hit

HCM City (VNS/VNA) – Ho Chi Minh City is likely to face hurdles caused by a global recession this year and escalating uncertainty, Vice Chairman of the municipal People’s Committee Duong Anh Duc has warned.

Speaking at a meeting on February 1, he said the global economic slowdown and inflation would impact the city’s socio-economic development, slowing its recovery.

Global growth is expected to decrease from 3.2% last year to 2.7% this year, he said.

The real estate, stock and bond markets are all expected to face huge challenges this year amid tightening monetary policy, according to Duc.

Many local businesses lack orders because of the weak global demand, and the situation would not improve until the middle of the year, he said.

The city would organise meetings to discuss measures to support businesses and workers, and seek ways to supply the economy with capital amid the tight monetary policy, Duc said.

For instance, it would implement a programme to link up banks and enterprises to provide the latter with loans.

It would also speed up public spending, which has been tardy, to speed up work on major projects this year, he said.

It would also organise activities to match labour supply and demand, he added.

The city’s exports were worth 3.6 billion USD in January, down 13% year-on-year.

In January, its Index of Industrial Production decreased by 15% year-on-year and 21% from the previous month.

Retail sales of goods and services grew by 5.7% year-on-year.

Tourism revenues increased by 16.8% year-on-year.

The city received 350,000 visitors, up 100% year-on-year, but mostly domestic travellers, in January, and has a target for this year of attracting 4.5-5 million foreign tourists and revenues of 120 trillion VND (5.03 billion USD).

The city attracted 50 FDI projects worth a total of 86.86 million USD, up 127.8%.

Its revenue collection were down 13%./.