Delegates discuss measures to boost HCM City’s economic development at a seminar in HCM City on May 16. (Photo courtesy of nld.com.vn) Over the past decades, the city has always maintained its role as the country’seconomic locomotive, but its economic growth has slowed down in recent years.
Its gross regional domestic product (GRDP) grew just 0.7% in the first quarterof the year, much lower than the national average. The city’s economy willcontinue to face many unpredictable difficulties and challenges in theremaining quarters of the year, they said.
Speaking at the seminar ‘Removing obstacles to drive HCM City’s economic development'held in HCM City on May 16, Assoc. Prof. Dr. Tran Dinh Thien, former directorof the Vietnam Institute of Economics, said HCM City shouldered the country’seconomy, and only when the locomotive grows strongly can it 'pull the wholetrain up'.
Despite its economic growth slowing down, the city still has abundant internalresources. So creating new breakthroughs for the city is needed to boost itsdevelopment, he said.
"We need to identify and address long-term problems to enable HCM City toregain its position and growth," he said.
“The city has to turn itself into an international integration centre, withbreakthrough projects such as Can Gio transshipment port and an internationalfinancial centre to draw more international investors," he said.
Dr. Tran Du Lich, a member of the National Advisory Council for Financial andMonetary Policies, said macro policy that stimulates demand in the domesticmarket is needed to help the economy recover soon.
The Government should continue to reduce the value added tax to 5-6%. Thecurrent reduction of the VAT tax to 8% is not enough, he said.
Businesses need to run a series of discount campaigns to stimulate demand,including tourism. With exports facing difficulties, promoting consumption inthe domestic market is a must, he said.
In addition, consumer credit should be accelerated to stimulate consumptiondemand, he added.
From a business perspective, Nguyen Anh Duc, general director of Saigon Co.op,said that retail businesses are facing many difficulties due to decliningdemand. Statistics of the Association of Vietnam Retailers showed that noretailer had positive growth in the first quarter of 2023.
To create conditions for the retail industry to develop as well as the economyto recover, there should be policies to directly support consumers, such as a 2%reduction in VAT.
Lich said the National Assembly is discussing a resolution to supersedeResolution No 54 on specific mechanisms and policies for the development of thecity. If it is approved and immediately applied, it will give the city greatautonomy and help solve institutional obstacles to facilitate growth./.
VNA
