HCM City’s economy hits sharpest decline on record

HCM City (VNS/VNA) – Ho Chi Minh City’s economy shrank by 6.78 percent in 2021, the sharpest yearly decline on record, according to the municipal Statistics Office, as stringent COVID-19 restrictions took their toll.

Speaking at a press briefing on December 29, Tran Phuoc Tuong, head of the office, said though the economy shrank to 1.29 quadrillion VND (56.55 billion USD), revenue collections surpassed the year’s target to reach 383 trillion VND (16.79 billion USD), an increase of 3 percent from 2020.

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

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

The index of industrial production plummeted by 14.3 percent.

Manufacturing shrank by 14.7 percent and electricity production and distribution by 4.9 percent.

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./.