HCM City’s GRDP grows 6.46% in H1, showing signs of recovery

Foreign tourists seen in front of the HCM City Post Office in the downtown area. The city saw a surge in foreign tourist arrivals, with nearly 2.7 million visitors in the first half. VNS Photo Bồ Xuân Hiệp

HCM CITY — Despite facing various challenges, HCM City’s Gross Regional Domestic Product (GRDP) grew 6.46 per cent in the first half of the year, showing signs of recovery.

According to a report by the HCM City Statistics Office, the city’s industrial production index (IIP) grew 5.6 per cent during the period, the highest increase in the past three years.

The city saw a 10 per cent year-on-year increase in total retail sales of goods and services.

As of June 20, 25,248 enterprises entered the market this year, registering VNĐ215 trillion in capital, up 9.6 per cent in enterprise number and 1 per cent in capital from the same time last year.

Its state budget collection was also a bright spot at more than VNĐ265 trillion, rising 16 per cent against the same time last year.

However, the city fell short of its public investment disbursement target, with only VNĐ15 trillion disbursed by the end of June, or 19 per cent of the set target instead of the expected 30 per cent.

It aims to disburse VNĐ73 trillion, equivalent to 95 per cent of public investment by year-end.

The city saw a surge in foreign tourist arrivals, with nearly 2.7 million visitors in the first half of the year, up 38 per cent year-on-year and representing 44.6 per cent of the annual target, driven by a series of festivals and tourism promotion events.

It also welcomed over 17 million domestic tourists, up 4.4 per cent year-on-year and making up 45 per cent of the yearly target.

Its tourism revenue saw a notable surge of 14.6 per cent during the period, reaching VNĐ92.6 trillion.

In addition, progress of the first metro line (Bến Thành – Suối Tiên) has been 98 per cent completed, with the city aiming to start operations by November.

Phan Văn Mãi, chairman of the People’s Committee, acknowledged the challenges faced by the city, such as low credit growth and a slow recovery in the real estate market.

To achieve its growth target of 7.5-8 per cent for the year, experts recommend focusing on high-tech industries, financial services, and stabilising the real estate market.

Diversifying export markets and expanding to potential markets such as Japan, South Korea, and India are also essential strategies to support production and business activities.

Việt Nam reported a 6.42 per cent year-on-year GDP growth in the first half, with the Asian Development Bank forecasting a growth rate of 4.6 per cent for Southeast Asia this year.

Việt Nam and the Philippines are expected to have the highest growth rates in the region in 2024, reaching 6 per cent. — VNS