(VOVWORLD) -Ho Chi Minh City’s economic growth is expected to increase 5.87% in the second quarter of 2023. With a jump from 0.7% in the first, HCMC, known as the economic leader of Vietnam, has developed strongly. This is an optimistic signal for the city’s economy in the remaining months of this year.
 HCMC’s economy is reported to change positively in Q2. (Photo: Thien An)
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HCMC’s economic growth in the first half is expected to be 3.55% in which industry will likely increase 4.77% in the second quarter from the minus growth in the first. The services sector is expected to post a growth rate of 7.16% in the second quarter and 4.96% for six months.
Public spending reached 400 million USD, up nearly six times against in the first quarter. The retail and services have seen considerable changes. The tourism sector has been offering discounts, especially during summer months, the peak season.
Phan Van Mai, Chairman of the municipal People’s Committee, said this shows the great effort made by the entire city, adding that in the first months of the year, especially after the review of the first quarter, the city has made greater efforts in administration reform and difficulty removal for businesses.
“The municipal People's Committee, functional agencies, and sectors all have worked closely with each other to create positive changes,” said Mai.
Pham Binh An, Deputy Director of Ho Chi Minh City Institute for Development Studies, said that the city's growth is thanks to the launch of support policies for businesses and scenarios for economic recovery since late last year.
In the first quarter, the city focused on removing difficulties in administrative procedures and speeding up public investment projects, leaving positive impacts in production and trading in the second quarter and helping many businesses access loans to restore production. In addition, trade promotion has been enhanced to seek outputs for businesses, said An.
An called on departments, sectors, and especially trade promotion agencies to promulgate practical support programs to help businesses seek markets and connect supply-demand through not only the exhibitions of traditional formats, but also modern channels.
“It’s necessary so that businesses can look for markets to restore production. This is a fundamental solution to promote the city’s economic growth,” said An.
 Nguyen Ngoc Hoa, Chairman of HCMC Business Association
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Nguyen Ngoc Hoa, Chairman of the municipal Business Association, said the current big bottleneck is “overseas inventories” which means exports go through one country but must be consigned to foreign importers.
Hoa stressed the need to look for new markets and new opportunities, adding, “The South American market remains open, which the business community should consider as niche markets. Export trade fairs have been held to find new export opportunities.”
 Phan Van Mai, Chairman of HCMC People’s Committee |
Chairman Mai said in the remaining six months, Ho Chi Minh City will focus on realizing the Government guidelines and policies on socio-economic development to achieve the set growth targets.
Despite positive forecasts, businesses are facing many difficulties in the market, orders, inventory, capital access, and procedures relating to land and environment.
To deal with all of the issues, Mai underscored the need to addressing difficulties faced by businesses, strengthening and expanding the domestic market, and organizing trade promotion activities to increase consumption.
“Connection and coordination programs with other economic regions will be tapped to promote the domestic market and export, and support enterprises to access new markets. New solutions and policies will be studied to help businesses,” said Mai.