HO CHI MINH CITY: Ho Chi Minh City’s economy showed encouraging signs in the first quarter of this year, with gross regional domestic product (GRDP) estimated to expand by 8.27% year-on-year, the strongest performance in more than five years.
As it has set a GRDP growth target of over 10% for this year, growth in the first half must reach at least 10.3%, with the second quarter alone targeted at 11.59% to 12.49% (average 12.04%).
During January to March, the services sector remained the primary engine of growth, rising 8.91% and accounting for 51.9% of GRDP, while contributing 56% to overall expansion.
Despite some improvement, industry and construction fell short of expectations.
The sector grew by 7.73%, representing 35.2% of GRDP, but contributing only 32.6% to growth. Construction activity increased by 8.05%, adding around 2.2%.
Several manufacturing industries have begun to recover, however, rising input costs, particularly due to fuel price volatility, continue to place pressure on enterprises.
A notable bright spot is the sustained attractiveness of the business environment.
In the period, more than 13,600 new enterprises were established, up 46.7% year-on-year, with total registered capital nearing 91.4 trillion dong, up 46.6%.
The city also attracted nearly US$2.9bil in foreign direct investment, surging 219.7%.
Nevertheless, external uncertainties continue to weigh on the economy.
A survey of manufacturing firms showed that 77% expect conditions in the second quarter to remain stable or improve, while nearly 23% foresee challenges ahead.
On the domestic front, stimulating consumption, enhancing the price stabilisation programme, promoting large-scale trade and service events, and intensifying promotional campaigns are viewed as key measures.
However, slow public investment disbursement remained a major bottleneck. In the first quarter, the city disbursed nearly 13.6 trillion dong out of a planned 147.6 trillion dong – less than 10%. — Viet Nam News/ANN
