At the conference to summarize the implementation of socio-economic development tasks in 2024, and to disseminate and deploy tasks in 2025 of the Ho Chi Minh City People’s Committee on December 26, Mr. Duong Ngoc Hai, Permanent Vice Chairman of the Ho Chi Minh City People’s Committee, said that in 2024, despite facing many difficulties and challenges, with the efforts of the entire political system, the City’s economy has reached the finish line with a fairly good growth rate estimated at 7.17%.

ECONOMY CONTINUES TO RECOVER

According to the economic situation report of the Ho Chi Minh City People’s Committee, in 2024, it will continue to recover strongly, with the growth rate of each quarter higher than the previous quarter. Specifically, the first quarter increased by 6.79%, the second quarter increased by 6.53%, the third quarter increased by 7.36% and the fourth quarter is estimated at 7.92%.

“The City’s economy in 2024 will continue to recover, with growth in the following quarter higher than the previous quarter, and the total product in the area’s GRDP for the whole year of 2024 is estimated to increase by 7.17% compared to 2023 (nearly reaching the set plan, increasing from 7.5-8%)”, said Mr. Duong Ngoc Hai.

Of which, the industrial and construction sector increased by 6.89%, industrial production still maintained a stable growth rate, showing the recovery and sustainable development of the City’s industry.

In addition, the production and business activities of enterprises have shown many positive signs as orders gradually recovered. Specifically, the industrial production index (IIP) in 2024 is estimated to increase by 7.3% over the same period. Of which, the mining industry increased by 28.5%; the processing and manufacturing industry increased by 5.1%; and electricity production and distribution increased by 11.2%. The production index of four key industries alone increased by 7.6% over the same period.

Total retail sales of goods and consumer service revenue in 2024 in Ho Chi Minh City grew steadily, estimated at more than VND 1.2 million billion, up nearly 11%. Of which, retail sales of goods increased by 11%, accommodation and food services increased by 9%, travel services increased by 55% and other services increased by 8%. Revenue from tourism in 2024 is estimated at VND 190,000 billion, up 18.8% over the same period in 2023.

The total export turnover of the city’s enterprises through the country’s border gates in 2024 is estimated at 46 billion USD, an increase of 8.3% compared to 2023. The structure of export goods continues to shift in a positive direction, with processed industrial goods continuing to account for a large proportion (75%) of export turnover. The total import turnover of the city’s enterprises through the country’s border gates is estimated at 58.6 billion USD, an increase of 5.9% over the same period.

2024 also recorded a record budget revenue of Ho Chi Minh City reaching more than 508,000 billion VND, equal to 105.3% of the assigned estimate, an increase of more than 13.3% compared to 2023. Of which, domestic revenue changed most positively, reaching 356,840 billion VND, equal to 106.8% of the estimate and an increase of 17.6% over the same period; Revenue from import and export reached VND 129,600 billion, up 6.96% over the same period.

Regarding public investment, in 2024, the City has assigned and allocated a detailed plan for public investment capital in 2024 of VND 79,263.776 billion, including central budget capital of VND 3,686.56 billion and local budget capital of VND 75,577.216 billion.

The City strives to disburse VND 60,944 billion by the end of December 2024, reaching 76.9%; by the end of the 2024 planning year (January 2025), disbursement of VND 64,528 billion, reaching 81.4% of the total assigned capital.

The Standing Vice Chairman of the Ho Chi Minh City People’s Committee admitted that the City still faces a number of difficulties that slow down the disbursement progress, including changes in relevant laws, obstacles in site clearance procedures, planning adjustments, and dependence on central ministries and branches in handling procedures.

In addition, Ho Chi Minh City’s economy also has some limitations. The growth rate in the number of newly established enterprises and registered capital in 2024 both decreased compared to the same period in 2023.

Specifically, the number of newly established enterprises is about 52,500 enterprises with an estimated newly registered capital of VND 400,000 billion, down 1.2% in number, down 16.6% in registered capital compared to the same period; additional registered capital is about VND 340,000 billion, down 39.7% compared to the same period. In total, the total registered and additional capital in 2024 is estimated at VND740,000 billion, down 29.1% over the same period.

Regarding foreign investment attraction (FDI), in 2024, including capital attracted in the form of investment registration certificates and capital attracted through capital contributions, share purchases, and capital repurchases of domestic enterprises, the city attracted an estimated USD4.85 billion, down 18.9% over the same period.

“The progress of implementing projects under the Smart City Project still has some limitations, especially large-scale projects with high complexity; digital transformation still faces some difficulties,” said Mr. Hai.

STRIVE TO ACHIEVE A 10% GROWTH IN 2025

In 2025, Ho Chi Minh City said it will focus on completing key goals and tasks with the highest results, striving to achieve a GRDP growth rate of over 10%.

In addition, the City will develop and implement a plan to implement the 2025 theme, while continuing to arrange and streamline the organizational apparatus according to the Central direction. This will be associated with reviewing, innovating institutions, screening the team and strengthening management efficiency to meet development needs.

In particular, the City will focus on mobilizing resources, implementing the socialization policy in many fields and regularly updating the list of projects calling for investment to promote the participation of economic sectors.

Priority will be given to key programs, projects and projects, including: Infrastructure development project, coastal road project research; Thu Thiem – Long Thanh railway project; Can Gio international transit port; Ring Road 2, 3, 4 projects; Logistics Center development program; Flood prevention and wastewater treatment project; and Housing development program for the period 2021-2030;…

According to calculations, in 2025, Ho Chi Minh City will need to mobilize about 450,000-500,000 billion VND; of which, non-state investment capital sources are 350,000-400,000 billion VND.

Regarding administrative procedure reform, the City strives to be among the top 5 localities nationwide in terms of the Provincial Competitiveness Index (PCI) and the top 15 localities nationwide in terms of the Administrative Reform Index (PAR-index). Mr. Dinh Khac Huy, Deputy Director of the Department of Planning and Investment of Ho Chi Minh City, commented: “In 2025, the world situation will continue to develop complicatedly, the difficulties caused by overloaded infrastructure and lack of resources will be partially overcome but will not meet the set needs. Therefore, achieving double-digit growth is a huge challenge, requiring the efforts of the entire political system, the support of businesses and people”.