On the afternoon of July 1, the Ho Chi Minh City People's Committee held a meeting on the socio-economic situation in the first 6 months of the year; key tasks and solutions for the last 6 months of 2024. Chairman of the Ho Chi Minh City People's Committee Phan Van Mai chaired.
Ho Chi Minh City's economy grows 6.46%
In the first 6 months of 2024, the growth rate of the total product in Ho Chi Minh City (GRDP) is estimated to increase by 6.46%. Some industries and sectors increased steadily, higher than the same period, such as the industrial and construction sector increased by 5.5%, and services increased by 7.26%.
These are bright spots in Ho Chi Minh City’s economic development. However, some experts assess that Ho Chi Minh City’s economic growth rate is showing signs of decline. This is a big challenge for the next 6 months.
Specifically, Dr. Truong Minh Huy Vu, Deputy Director of the Ho Chi Minh City Institute for Development Studies, analyzed that although the industrial index increased compared to the previous quarter, it was still lower than the national average. In particular, the manufacturing and processing industry, the main pillar of the city, had a lower growth rate than the industry's overall growth rate.
Looking at the past 6 months, the trend of foreign direct investment (FDI) capital from provinces and Ho Chi Minh City has increased but has not been able to absorb that capital into specific projects in industrial parks, export processing zones or in specific projects. Dr. Truong Minh Huy Vu assessed that this is a very big problem, both wasting effort to attract investment, solving problems to launch projects but not being able to implement the projects and capital not being utilized.
Nguyen Phuoc Hung, Permanent Vice President of the Ho Chi Minh City Business Association, also informed that through the survey, most businesses are operating stably at 57.1%, an increase of more than 6% compared to the first quarter. However, the number of businesses with reduced revenue increased by 30.4%. Meanwhile, inventory increased by 34% and outstanding debt increased by 42%.
Mr. Nguyen Phuoc Hung said that capital is always the first condition that businesses need to ensure. However, with prolonged difficulties causing business health to decline, small businesses are facing a state of cash flow exhaustion.
From there, the leaders of the Ho Chi Minh City Business Association proposed that the State Bank study a policy of thoroughly and long-term grace for debts due in 2024, not creating pressure for businesses to pay new debts.
Commercial banks also need to share difficulties with businesses by continuing to maintain interest rates and lending to businesses with shipments as collateral as before. Along with that, they need to focus on administrative reform and invest heavily in key projects.
Nourishing "health" for HCMC
Dr. Tran Du Lich, Chairman of the Advisory Council for the Implementation of Resolution 98 of the National Assembly, analyzed that the health of enterprises nationwide, not just in Ho Chi Minh City, is showing signs of weakness and slow growth. Therefore, Ho Chi Minh City needs to pay more attention to policies to stimulate domestic demand, promote tourism, and support enterprises in technology transformation and green transformation.
Dr. Tran Du Lich suggested that Ho Chi Minh City needs to have effective solutions to help the city absorb public and private investment capital. He also suggested that Ho Chi Minh City needs to focus on urban and housing improvement programs.
The city's construction industry has high expectations, while the first quarter increased by 7.92%, the second quarter only increased by 4.1%. Director of the Ho Chi Minh City Statistics Office Nguyen Khac Hoang said that one of the related reasons is that the city's disbursement progress is slow, not meeting the set plan. As of the end of June, the city's disbursement only reached 13.8% of the plan, greatly affecting growth and attracting foreign investment.
At the local level, Vice Chairman of Thu Duc City People's Committee Nguyen Bach Hoang Phung said that Thu Duc City has implemented a review and assessment of public housing and land funds with potential for investment in the form of public-private partnership (PPP) in the area. Thu Duc City has sent the Ho Chi Minh City People's Committee a proposal for a list of investment projects in the form of PPP in the fields of health, education - training, sports - culture to submit to the Ho Chi Minh City People's Council for approval.
Thu Duc City People's Committee has also received 50 projects requesting approval and adjustment of investment policies. Up to now, it has issued decisions approving investment policies for 6 housing development projects in the area with a total proposed capital of 6,860 billion VND.
After more than 1 year of implementing Resolution 98 of the National Assembly on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City, Dr. Tran Du Lich commented that Ho Chi Minh City still faces difficulties in implementing policies to create motivation, mobilize resources from strategic investors, and invest in the form of public-private partnerships (PPP). In particular, specific projects related to this group of policies have not yet come to life.
Also giving his opinion on this issue, Dr. Truong Minh Huy Vu, Deputy Director of the Ho Chi Minh City Research Institute, stated that last year, Resolution 98 was the city's "lighthouse" for promoting socio-economic issues.
However, this year, the city's "lighthouse" is the city's two plans. And this is the "compass" for Ho Chi Minh City to rely on the plan to remove projects and constructions, contributing to creating new momentum and spirit. In addition, Ho Chi Minh City needs to focus strongly on programs and projects that can be done and boldly put aside programs and projects that require a lot of effort but are difficult to do.
Vice Chairman of Ho Chi Minh City People's Committee Bui Xuan Cuong:
Promote decentralization to localities
Recently, Ho Chi Minh City has reviewed and is implementing projects but slowly. Ho Chi Minh City has decentralized and authorized localities to locally adjust detailed planning of zoning projects at scale of 1/2000 and 1/500 to remove difficulties when implementing public investment projects.
Public investment projects under implementation are also stuck in underground space planning. The Department of Planning and Investment and the Department of Construction are reviewing reports for Ho Chi Minh City to consider and propose solutions to speed up the disbursement of public investment capital.
Vice Chairman of Ho Chi Minh City People's Committee Nguyen Van Dung:
Focus on increasing budget revenue
The upcoming economic situation is forecasted to be difficult, so from now until the end of the year, Ho Chi Minh City will focus on solutions to ensure the State budget revenue target. At the same time, it will focus on stabilizing the market to prepare for the new school year and Tet holiday.
Along with that, the Ho Chi Minh City People's Committee together with departments and branches completed major tasks and projects such as: International Financial Center, Commodity Exchange, Logistics Development Project, Ho Chi Minh City Tourism Development Strategy.
Permanent Vice Chairman of the Vietnam Fatherland Front Committee of Ho Chi Minh City Nguyen Thanh Trung:
Control price increases as wages increase
From July 1, the basic salary will increase by 30%, so Ho Chi Minh City is interested and has specific solutions to control price increases. At the same time, it is interested in implementing projects to celebrate the 50th Anniversary of the Liberation of the South and National Reunification.
In particular, Ho Chi Minh City needs to pay attention to projects and works that serve to improve the quality of life of people both materially and spiritually. In the context of general difficulties, Ho Chi Minh City has made efforts and carefully implemented humanitarian activities, which are very valuable, such as: the project to develop a medical network at the grassroots level to care for people's health; the program of free health check-ups for the elderly...
PROFIT - CIVILIZATION
Source: https://www.sggp.org.vn/ban-giai-phap-dot-pha-boi-bo-suc-khoe-nen-kinh-te-tphcm-post747246.html
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