HCM City: 4 key industries maintain growth momentum

Tuesday, 31/10/2023 17:07
Industrial production in the first 10 months of 2023 in Ho Chi Minh City has had much prosperity, as the production index of 4 key industries enjoyed sharp increases compared to the same period last year.
Industrial production in the first 10 months of 2023 in Ho Chi Minh City has seen much prosperity

According to the report of the City People's Committee, in Jan-October 2023, the city’s socio-economic situation is affected by continuing complex and unstable fluctuations on the global economy.

In October 2023, the production index of 4 key industries in the city increased by 6.3% over the same period in 2022.

Despite many difficulties, economic sectors and fields of the city continue to maintain growth momentum, in which industrial production has flourished, creating motivation for economic growth.

Specifically, industrial production index (IPI) in the 10 months increased by 3.7% over the same period. Notably, the production index of 4 key industries increased by 6.3%. Of which, the pharmaceutical chemistry industry increased by 19.2%; the mechanical industry soared by 7.4%; and the electronic goods manufacturing industry rose by 6%; while the food and beverage industry decreased by 6.0%.

For three traditional industries, 10-month IPI decreased by 8.6% over the same period, of which the textile industry increased by 2.5%; apparel production decreased by 12.6%; and leather manufacturing industry and related products declined by 8.1%.

Thanks to the growth momentum of key industries, the consumption index of the processing and manufacturing industry in October 2023 expanded by 2.3% over the previous month and increased by 19.9% over the same period, showing positive signs about the recovery of industries. In the 10 months, the consumption index of the entire industry rose by 1.5% over the same period in 2022.

In addition to the prosperity of the industry, total retail sales of goods and service revenue in the 10 months reached VND 978,681 billion, an increase of 9.2% over the same period. Total tourism revenue is estimated to reach 140,048 billion VND, an increase of 32.6% compared to 2022.

For the banking sector, total capital mobilization of credit institutions in the area by the end of October 2023 is estimated to reach over 3.38 quadrillion VND, up 0.5% from the previous month and up 4.5% against the same period last year.

In October 2023, the production index of 4 key industries in the city increased by 6.3%

According to Ms. Le Thi Huynh Mai, Director of the Department of Planning and Investment, the city’s economy continues to have positive changes. However, there are still shortcomings and limitations such as a decrease in import-export turnover (down 13.4% from the same period), growth in the number of businesses, but reduction in registered capital.

In addition, despite ranking third in the country, public capital disbursement only reached 35% of the year’s plan. In particular, the current credit growth rate is still low compared to the target set by the State Bank (14%), showing that the recovery process of the economy is still not strong.

Ms. Le Thi Huynh Mai said that the remaining 2 months of 2023 are extremely important for the city to implement the year’s targets and tasks. Therefore, Ho Chi Minh needs to implement 10 key solutions.

Specifically, the city should continue to promote improvement of Provincial Competitiveness Index (PCI), Provincial Governance and Public Administration Performance Index (PAPI) and Public Administration Reform Index (PAR). Along with that, it is necessary to remove difficulties and obstacles for businesses; further solve difficulties in the real estate market; and promote infrastructure and urban development.

In addition, the city needs to strive to complete the public investment disbursement rate and budget revenue target, contributing to completing the city's socio-economic development targets./.