Promoting development momentum from economic "locomotives"

Vietnam’s economy grew beyond expectations in the first six months of the year thanks to a positive recovery in the manufacturing and service sectors. However, among the top growing localities, the most important contributors to the country’s overall growth were the absence of economic locomotives.

In order from highest to lowest, there are seven localities that achieved double-digit growth in gross regional domestic product (GRDP), including: Bac Giang, Khanh Hoa, Thanh Hoa, Ha Nam, Hai Phong, Tra Vinh, Hai Duong. Thus, in the top 7 localities with the highest growth in the country, there is only one centrally-governed city, Hai Phong.

Notably, the provinces and cities that achieved the highest growth rate GRDP growth The highest growth rates in the first six months of the year were all largely contributed by the processing and manufacturing industry. Meanwhile, localities that are economic “locomotives” such as Ho Chi Minh City, Hanoi, Da Nang, and Can Tho all grew below their potential, lower than or equal to the overall growth rate of the whole country.

There are many reasons why economic locomotives are slowing down. In Da Nang, tourism activities are greatly affected by the global economic recession, affecting the flow of visitors and reducing the spending of international tourists; tourism businesses are still facing difficulties in reinvestment capital, land rents, etc. to upgrade tourism products as well as invest in new tourism products; production and business activities of enterprises are still facing difficulties due to the decrease in orders, etc.

In Ho Chi Minh City, total social investment increased slowly, the economy's ability to absorb capital faced many difficulties; production and business of enterprises reduced profit margins and are forecasted to continue to be affected by difficulties in the world situation in the coming time, revenue from import and export decreased; disbursement of public investment capital is still limited, the real estate market has recovered but is not strong enough to contribute to the growth of the service industry; consumer demand has not recovered to pre-Covid-19 pandemic levels...

In the context of the economy continuing to flourish in many industries and fields, and the growth of localities is accelerating, the slowing growth of economic locomotives is a phenomenon that needs close attention in order to have effective solutions to bring these localities back to the high growth trajectory.

In order for the economy to achieve a growth rate higher than the set target, in addition to increasing aggregate demand, promoting disbursement of public investment capital, and promoting new growth drivers, the driving force from the locomotives is essential for the entire economic train to accelerate and break through to the finish line.

In the year-end management solution, the Government requested ministries, branches and localities to drastically improve the investment and business environment, contributing to attracting and effectively using investment capital, promoting the growth of economic locomotives such as Hanoi, Can Tho, Da Nang, Ho Chi Minh City higher than the whole country and increasing the spread to regions and the whole country.

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