HCM City economy shows steady recovery

The economy in HCM City recovered substantially over the first five months of the year, according to municipal officials who met last week to review economic progress since January.

Although the growth of industrial value and retail and services turnover in the city have been high, city officials remained concerned about how to stabilise the Consumer Price Index (CPI) and support enterprises to achieve the year’s target of 11 per cent GDP growth.

Many of the city’s economic goals have reached higher levels than those recorded during the same period last year, according to a report from HCM City Department of Industry and Trade.

Nguyen Van Lai, head of the department, said the industrial value in May was recorded at VND47,330 billion (US$2.5 billion), a growth of 3.9 per cent against two months ago, making the total value of the first five months this year at VND221,250 billion ($11.6 billion), an increase of 13.8 per cent against the same period last year.

The information technology sector achieved growth of 59 per cent and export turnover of goods including garments, leather and seafood increased a total of 19.3 per cent, excluding gold.

The number of newly registered enterprises rose 7 per cent, with a growth of capital of 60 per cent.

The sign of economic recovery was especially evident in retail revenue growth of 2.3 per cent in May. The total retail revenue of the past five months was VND145,600 billion ($7.7 billion)

The CPI, however, saw a growth of 0.48 per cent against last month. Since early this year, CPI has risen by 4.51 per cent.

The chairman of the city People’s Committee urged city departments to develop measures to curb inflation.

He said the city would continue to use the State budget to support enterprises that manufacture eight essential products.

The mayor also asked the HCM City Electricity Company to give electrical power priority to enterprises’ production facilities. — VNS

Tags: HCM city economy, Vietnam economic, Vietnam economy