HCMC’s economy still has bright spots amid difficulties in 2020

SGGP
The Statistics Office of Ho Chi Minh City held a press conference to announce the socio-economic statistics of the city in 2020 on December 29 with the attendance of Ms. Phan Thi Thang, Vice Chairwoman of the municipal People's Committee.
Vice Chairwoman of the People's Committee of HCMC Phan Thi Thang said that amid the context that the gross domestic product (GDP) of many countries dropped sharply due to the Covid-19 pandemic, Vietnam was also seriously affected, with economic indicators falling heavily compared to the previous years. However, HCMC still managed to maintain positive growth. The Gross regional domestic product (GRDP) of the city in 2020 increased by 1.39 percent compared to 7.83 percent in the previous year.

In which, the agriculture, forestry, and fisheries sector rose by more than 2 percent. Trade and services alone surged 2.17 percent. The city’s economy has a bright spot when it has achieved 16 out of 20 key targets.

According to the report, the total state budget revenue in 2020 is estimated at VND352 trillion, reaching 86.7 percent of the estimate, down 14.2 percent over the same period last year. Of which, domestic revenue is VND238 trillion, achieving 85.4 percent of the estimate, down 11.4 percent; revenue from crude oil is VND10.5 trillion, reaching 86.1 percent, down 52.2 percent; that from import-export activities is VND103.5 trillion, getting 90 percent, down 12.8 percent over the same period.

The total export turnover (including crude oil) of enterprises exporting through the city ports is estimated at US$40.21 billion, up 1.3 percent over the same period last year. Of which, the state-owned economic sector accounts for nearly $2.26 billion, down 24.5 percent; the non-State sector contributes $10.80 billion, down 7.5 percent; the foreign-invested sector holds $27.14 billion, up 8.4 percent.

The index of industrial production (IIP) is estimated to decrease 4 percent over the same period. In which, the processing and manufacturing industry declined most with up to 4.6 percent. Total retail sales of consumer goods and services are estimated at VND1.22 quadrillion, down 1.3 percent over the same period last year. In terms of industry, retail sales of goods are estimated at VND759.71 trillion, accounting for 62 percent of the total retail sales, up 11.9 percent year-on-year.

The tourism industry was affected most. Revenue from accommodation and catering services was only VND77.11 trillion, down by one-third; tourism revenue touched VND7.4 trillion, down by two-thirds; it was estimated passenger transportation of 502.85 million, down nearly half over the same period last year. The city had an international tourist arrival of 1.3 million, down by nearly 85 percent compared to the previous year, and a domestic tourist arrival of 15 million, down 54 percent.

Investment capital increases

By mid-December, the city has had 40,300 newly-registered enterprises, with a total registered capital of more than VND1.11 quadrillion, down by 6.3 percent in the number of enterprises, but up 64 percent in the value of registered capital. Investment activities focused on the main service industries with more than 28,500 enterprises, accounting for more than 70 percent of the total number of newly-registered enterprises, and registered capital of VND961.41 trillion, accounting for 86 percent of total registered capital, an increase of 92 percent over the same period.

Total realized social investment capital in 2020 at the current price was estimated at VND441 trillion VND. Although it went down 1.2 percent, it still accounted for 32.1 percent of GRDP. Of which, the investment capital of the State-owned sector and the capital from the local budget was estimated at VND39.91 trillion, an increase of more than 50 percent compared to the previous year. Noticeably, the disbursement rate for public investment this year was fairly high, up to 90 percent compared to the plan, the highest in history. It shows that the city has drastically implemented measures to promote the disbursement of public investment capital.

However, at present, Vietnam is facing many difficulties in the new normal, including restoring economic growth, solving underemployment, reducing unemployment, increasing disbursement of public investment, taking care of people's lives, preventing and controlling the Covid-19 pandemic.

Mr. Huynh Van Hung, Director of HCMC Statistics Office, said that it is necessary to have many measures to attract investment and support domestic enterprises in trade promotion; quickly rearrange State-owned enterprises by equitization, help manufacturing, processing, and high-tech industries; pay attention to the fight against revenue loss and transfer pricing; strengthen the granting of land use right certificates, develop a healthy real estate market; accelerate e-government and administrative reform.

By December 20, HCMC has attracted 950 foreign direct investment (FDI) projects, with a total registered capital of $637.7 million. Besides, there were 250 times of projects adjusting their investment capital for an additional capital of $541 million, 3,640 times of investors contributing capital and buying shares with a total value of more than $3.17 billion. Thus, the total newly-registered, adjusted capital, capital contribution, and purchase of shares reached $4.36 billion, down 47.5 percent over the same period.

By Han Ni – Translated by Bao Nghi

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