City accelerates public spending to achieve 7.5% growth target this year

Phan Văn Mãi (standing), chairman of the city People’s Committee, speaks at a meeting last Friday on the city’s socio-economic performance in the first seven months. — VNA/VNS Photo

HCM CITY — HCM City will accelerate public spending, stimulate consumption, and expand export markets to achieve a growth rate of 7.5 per cent this year, its leader has said.

Speaking at a meeting last Friday, Phan Văn Mãi, chairman of the municipal People’s Committee, said that the city aims for a minimum growth of 7.5 per cent this year.

He said that it will focus on accelerating public spending for the rest of the year to achieve the growth target, as it has not met its public spending target so far this year.

It has disbursed only VNĐ11.8 trillion of public investment in the first seven months, or only 14.9 per cent of the annual plan. It aims to disburse 90 per cent of the allocated budget of VNĐ86 trillion this year.

“At the current rate, it must disburse a minimum of VNĐ10 trillion each month until the end of the year,” he noted.

The city official has urged contractors of major projects to report any challenges encountered promptly.

He even warned of implementing stringent measures against contractors who fail to perform adequately or do not comply with established standards.

The city has directed agencies to reduce the timeframe required to appraise and approve investment projects by no less than 30 per cent.

A Steering Committee comprised of specialised groups and project teams has been established to oversee the quality and progress of key initiatives.

In addition, while the city’s exports totaled $26.1 billion this year, up 10.4 per cent year-on-year, there are signs of a slowdown in export growth, according to the Statistics Office.

Major export markets for HCM City such as the US and China are expected to see significant growth in the second half, benefiting its exports.

However, these economies also face challenges that could impede recovery, posing potential risks to export activities.

Mãi said the city would also promote domestic consumption and investment to improve total demand this year.

Diversifying export markets and exploring new markets are also crucial strategies to bolster production and business operations, he added.

In addition, the city will prioritise the development of high-tech and green industries.

Report

A recently published report entitled HCM City Macroeconomic Report: Recovery and Challenges forecasts continued economic growth for the city throughout the year.

The annual report, published by the University of Economics of HCM City (UEH) in collaboration with the Statistics Office, showed a resurgence in total demand across multiple indicators related to consumption, investment, and exports.

Achieving a growth target of 7-7.5 per cent this year remains feasible, provided that the global economy continues to recover favourably, according to the report.

Based on data from the first half of the year, the report highlighted a stable economic recovery in Việt Nam’s largest city.

The city’s Gross Regional Domestic Product (GRDP) witnessed a growth of 6.46 per cent in the first half.

Its index of industrial production (IIP) was up by 6.2 per cent year-on-year, the highest growth rate in the past three years.

It also saw a 10 per cent year-on-year rise in total retail sales of goods and services in the period. — VNS