HCM City’s economy stages vigorous recovery

HCM City (VNA) – Ho Chi Minh City’s economy is rebounding strongly, raising confidence among people and businesses, heard a recent meeting on local socio-economic situation.

Speaking at the meeting on April 26, Director of the municipal Department of Planning and Investment Le Thi Huynh Mai said the city’s Index of Industrial Production (IIP) in April expanded some 2 percent from the previous month and 9.7 percent year-on-year.

Its total retail sales of goods and services also jumped 3.2 percent month-on-month and 6.2 percent year-on-year. Lodging and catering services increased more than 12 percent and travel services grew over 18 percent as compared with March.

In the first four months of this year, the southern economic hub’s budget collection was over 168.77 trillion VND (7.34 billion USD), fulfilling 43.51 percent of the estimate for the whole year and up 13.87 percent year-on-year.

Its IPP increased 2.6 percent during the four-month period, of which the four main sectors of food processing, pharmaceutical chemicals-rubber-plastic, mechanical engineering, and electronics rose some 6 percent against the corresponding time last year.

Despite difficulties caused by the COVID-19 pandemic, a number of FDI firms are seeking local suppliers, which will be a good opportunity for enterprises operating in support industries to further integrate into the global supply chain and improve their competitiveness, a representative from the municipal Department of Planning and Investment said.

Notably, outcomes in pandemic containment and economic recovery have helped warm up the tourism market, with foreign tourists in April increasing 100 percent year-on-year to 114,728. The city earned around 8.76 trillion VND from tourism, a year-on-year rise of 26.7 percent.

Since April 25, the municipal Department of Health has applied measures to renovate the quarantine at Tan Son Nhat International Airport, including the exemption of COVID-19 test checks.

As airlines are required to ensure all passengers are negative for COVID-19, the department asked the city’s Centre for Disease Control to skip this process at the airport.

Nguyen Thi Anh Hoa, Director of the Tourism Department, said the local tourism sector is also offering new products like city tours by helicopters and cruise ships to attract more holidaymakers.

Associate Prof. Dr. Tran Hoang Ngan, Director of the HCM City Institute for Development Studies, held that the good control of COVID-19 has positively impacted local economic activities.

However, he said, the city should pay more attention to living standards of labourers, poor households and social policy beneficiaries amid the increasing inflation.

He also suggested HCM City to speed up the implementation of the National Assembly’s Resolution No. 43/2022/QH15 on fiscal and monetary policies in support of the socio-economic development and recovery programme, along with the Government’s Resolution No. 11/NQ-CP on the programme, making it easier for enterprises and people to access fiscal and monetary support packages.

Chairman of the city People’s Committee Phan Van Mai ordered assessing the impacts of price hikes on people, especially low-income earners, and accelerating the implementation of support packages for people affected by the pandemic.

Regarding tasks for May, he asked departments and localities to continue efforts to fight COVID-19 and dengue, and implement resolutions on socio-economic recovery and development.

The city will focus on organising and participating in tourism and culture events and activities, with the highlight being the 18th Ho Chi Minh City Tourism Festival, according to the official.

The southern metropolis will also work harder to complete procedures for the construction of Belt Road 3, and remove obstacles to the disbursement of public investments, he said./.