Mr. Phan Van Mai: Ho Chi Minh City's economy in the second quarter is forecast to increase by 5.87%

The Chairman of the Ho Chi Minh City People's Committee said the city's economic growth in the second quarter is forecast to reach 5.87%, with a total increase of 3.55% in the first half of the year.

"Good news" about Ho Chi Minh City's growth was mentioned by Mr. Phan Van Mai in a group discussion session at the National Assembly on the afternoon of May 30.

According to him, the latest forecast from the General Statistics Office shows that the city's second quarter growth is 5.87%, because in the first quarter the city recorded a growth rate of only 0.7%, so the total for the first 6 months is estimated to increase by 3.55%.

Of which, the industrial and construction sector is expected to increase by 4.77% in the second quarter. However, due to the sharp decline in the previous quarter, the first half of the year only increased by 0.8%. Services is the sector with the highest growth rate among groups and sectors, with a forecast of 7.6%. The overall growth rate for the first 6 months is 4.96%.

"This is a great effort by the political system and the city's people. This result is very gratifying," said Mr. Mai.

Mr. Phan Van Mai, Chairman of Ho Chi Minh City People's Committee, spoke at the group discussion on the afternoon of May 30. Photo: Hoang Phong — Mr. Phan Van Mai, Chairman of Ho Chi Minh City People's Committee, spoke at the group discussion on the afternoon of May 30. Photo: *Hoang Phong*

The Chairman of Ho Chi Minh City acknowledged that the economy of the "locomotive of the country" had improved in May. Wholesale and retail goods and revenue from services and tourism increased significantly. Meanwhile, many promotional programs launched by the city and businesses during the 3 summer months helped stimulate tourism demand.

Thus, after the first quarter of the year when economic indicators fell sharply, Ho Chi Minh City has regained growth momentum.

Previously, the report of the Ho Chi Minh City Statistics Office on May 29 also said that industrial production is improving, purchasing power of goods is improving, accommodation and tourism activities are increasing. Specifically, the index of industrial production (IIP) in May is estimated to increase by 1.5% compared to April and increase by 5.5% compared to the same period in 2022. In general, the IIP increased by 1.6% in the first 5 months compared to the same period last year.

Total retail sales of goods and consumer service revenue in May also increased by more than 10% compared to May 2022, with a cumulative increase of 6.2% in the first 5 months of the year. Over the past five months, disbursement of investment capital from the budget is estimated at nearly VND 10,200 billion, an increase of more than 24% over the same period. In the last two months alone, Ho Chi Minh City has accelerated strongly when disbursing more than VND 8,000 billion.

Director of the Ho Chi Minh City Statistics Office Nguyen Khac Hoang assessed that with specific solutions, the city's economy has developed positively. He predicted that by the end of the second quarter, many economic development indicators of the "locomotive of the country" will grow strongly, bringing the first half of the year's results to be higher than the city's highest scenario.

At the "Conference on socio-economic situation in May 2023, the first 5 months of the year and key tasks and solutions in June 2023" of the Party Committee of the Ho Chi Minh City People's Committee on May 29, Secretary of the Ho Chi Minh City Party Committee Nguyen Van Nen also assessed that the local economic situation has positive signs, recovery and good growth.

However, Mr. Nen also commented that the world situation is still complicated, unpredictable, and has many aspects and fields that directly affect the city, requiring continued attention, monitoring, forecasting, and calculating scenarios to adapt to new and unpredictable challenges.

In fact, in the past 5 months, the situation of newly established enterprises and attracting foreign investment has remained weak. Accordingly, the number of licensed enterprises in the area increased by 7.9%, reaching 18,630, but decreased by 21.2% in capital compared to the same period. Meanwhile, the total foreign investment capital attracted was 1.14 billion USD, down 13.5% compared to the same period in 2022.

Director of the Department of Planning and Investment of Ho Chi Minh City, Le Thi Huynh Mai, said that the city has recently focused on resolving difficulties in public investment and private investment, but there are still issues that have not met expectations. Therefore, the city will continue to resolve these difficulties in the near future. Regarding the acceleration of public investment, the department proposed reviewing and adjusting a number of projects that have not completed preparation work or have internal difficulties that have not been resolved.

Mr. Minh

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