HCM City Sets To Sustain Growth Momentum in 2021

Ho Chi Minh City aims to sustain growth momentum in the remaining months of this year even when it is battling the worst-ever COVID-19 resurgence which began in late May.
July 25, 2021 | 16:11
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Data from the municipal Statistics Office, the city’s Gross Regional Domestic Product (GRDP) grew 5.46 percent year-on-year in the first half of this year. Total retail sales of goods and services reached about 542 trillion VND (23.5 billion USD), up 7.3 percent year-on-year. Budget revenue exceeded 198.56 trillion VND, up 20.7 percent and representing 55.7 percent of the yearly plan.

HCM City's total retail sales of goods and services reach about 542 trillion VND (23.5 billion USD) in the first half of 2021. (Photo: VNA)
HCM City's total retail sales of goods and services reach about 542 trillion VND (23.5 billion USD) in the first half of 2021. (Photo: VNA)

Its Industrial Production Index (IIP) picked up 5.9 percent during the period, with growth seen in all four key industries – food and beverage (1.2 percent), pharmaceutical chemistry (2.6 percent), electronics (15.6 percent), and mechanical engineering (10.7 percent).

This year, HCM City sets to achieve a GRDP growth of 6 percent or higher and collect over 364.89 trillion VND for the State budget, accounting for 24.79 percent of the national total.

In a recent meeting with local leaders to check the city’s COVID-19 response, Prime Minister Pham Minh Chinh highly spoke of the city’s efforts to realise the “twin goals” of keeping the coronavirus at bay and maintaining positive economic growth from January to June, saying it has upheld its critical role and position as the growth driver of the Southern Key Economic Region and the country.

A corner of Ho Chi Minh City. (Photo: VNA)
A corner of Ho Chi Minh City. (Photo: VNA)

Amid the growing complexity of the pandemic, HCM City is striving to keep production running while strictly enforcing quarantine rules in order to fulfill its twin goals, said Chairman of the municipal People’s Committee Nguyen Thanh Phong.

He cited a scenario developed by the HCM City Institute for Development Studies (HIDS) as forecasting that the city’s GRDP growth will reach 5.02 percent in the first nine months of 2021 and 4.9 percent for the entire year if the COVID-19 outbreak is stamped out by August.

Ho Chi Minh City economy expected to recover with COVID-19 vaccine

Tran Hoang Ngan, director of the Ho Chi Minh City Institute for Development Studies (HIDS), drew up three scenarios for the city’s economy in the meeting between Ho Chi minh City People's Committee, the city's leaders, experts, and businesses.

GRDP in the first nine months is expected to gain 5.74 if the pandemic will be well-controlled and manufacturing will improve in the second quarter. Photo: VNA
GRDP in the first nine months is expected to gain 5.74 if the pandemic will be well-controlled and manufacturing will improve in the second quarter. Photo: VNA

Under the first scenario, the COVID-19 outbreak will continue until August and several localities will have brought the pandemic under control, the GRDP of Ho Chi Minh City in the first nine months would rise 5.02 per cent and economic growth for the whole year would be 4.9 per cent.

In the second scenario, the pandemic will last until July while production in the city will see stable recovery, and enterprises will be able to secure part of their raw material demand. GRDP growth in the first nine months and economic growth for the whole year are expected to reach 5.26 and 5.53 per cent, respectively.

On the other hand, under the most positive scenario, the pandemic will be well-controlled and manufacturing will improve in the second quarter. Besides, the investment environment, public investment disbursement, as well as measures to support social security for employees have been improved. GRDP in the first nine months and economic growth for the whole year are expected to gain 5.74 and 6.37 per cent, respectively.

“Vaccination is important for the city economy to recover,“ Vo Thanh Phong, Chairman of Ho Chi Minh City People's Committee stated. He added that the Ministry of Health (MoH), Ho Chi Minh City has already set up a group for vaccination. In the coming days, the committee will meet suppliers and enterprises to seek out reasonable vaccine sources for the city.

Phong stated that Ho Chi Minh City plays an important role in delivering products between localities in the southeast region. He also praised the contribution of enterprises who are willing to aid the city in the vaccination. Up to now, with supplies from Russia, the United States, and the UK, Vietnam has gradually moved towards the goal of purchasing 150 million doses of COVID-19 vaccine in 2021 to immunise 75 per cent of Vietnam's population.

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