A strong socio-economic development was observed in Ho Chi Minh City during the month of April.
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Ho Chi Minh City, Vietnam, is enjoying a surge in multiple sectors, notably tourism and retail, as of April 2021, based on recent reports. The city's Economic Achievements Assessment meeting on Thursday attributed this growth to a combination of specific factors.
Le Thi Huyh Mai, the director of HCM City's Department of Finance, highlighted the city's impressive retail sales and consumer service revenue growth of 20% year-on-year in April. Export turnover saw an increase of over 9%, and industrial production grew by 7.9%. Tourism revenue, however, stole the show with a whopping 27.5% growth.
Since the start of the year, HCM City has tempted over $1.48 billion in foreign investment thanks to its administrative reform efforts and creating a clear investment-friendly legal environment. The city has welcomed more than 10,300 new businesses, boasting a combined registered capital of over VND229 trillion.
Despite the positive news, Mai acknowledged that the disbursement of public funding for investment projects had not reached its target.
Truong Minh Huy Vu, the director of HCM City Institute for Development Studies, pointed out that tourism revenue had exhibited strong growth, particularly in April, thanks to the 50th anniversary of national reunification celebrations and the 2025 United Nations Day of Vesak (May 6 to 8). He emphasized that public funding disbursement and the investment climate require further improvements.
On May 4, the Politburo issued Resolution No. 68-NQ/TU on private economic development to boost the city's economic development. Vo Van Hoan, the deputy chairman of HCM City People's Committee, stressed the importance of preparing for a new wave of investment.
For the upcoming months, HCM City plans to restructure its administrative units, implement a two-tier local governance model, and make preparations for the city's merger with Binh Duong and Vung Tau. The city aims to strengthen its efforts in addressing bottlenecks in investment projects, speed up key projects and infrastructure funding disbursement, and implement administrative reforms to improve competitiveness.
HCM City is determined to achieve its 2025 double-digit economic growth rate. During the recent national reunification celebrations, the city welcomed approximately 1.95 million domestic and foreign visitors who took advantage of promotional programs and holiday deals. Recent scandals concerning counterfeit food items in the city have also spurred a resurgence in traditional retail chains. VNS
Visitors outside a cafe in HCM City in mid-April. HCM City saw strong growth in tourism revenue and retail sales last month year-on-year. - VNS Photo Việt Dũng
Insights:- Economic growth in Ho Chi Minh City is driven by factors such as infrastructure development, foreign investment, manufactured goods, and strong domestic consumption.- The tourism sector regenerates from cultural and historical attractions, modern infrastructure, accessibility, and the overall economic and development growth of the city.- In April 2021, Ho Chi Minh City's tourism growth is significantly attributed to the 50th anniversary of national reunification celebrations and the 2025 United Nations Day of Vesak.- The city's success in attracting foreign investment is due to its strategic location, favorable business environment, and abundant skilled labor force.- A reassessment of the investment climate and improvements in public funding disbursement are essential for further economic growth and tourism revenue in Ho Chi Minh City.
- The growth in Ho Chi Minh City's economy is not limited to tourism and retail; it also includes finance, business, and even AI sectors, as the city strives for its 2025 double-digit growth.
- The fashion-and-beauty industry in HCM City has experienced a surge, reflecting the city's thriving lifestyle and consumer preferences.
- The food-and-drink sector, being a significant part of HCM City's economy, has also benefited from the influx of tourists and domestic visitors.
- HCM City's wealth-management sector has been influenced by the increase in personal finance due to the growth in various sectors, particularly retail and tourism.
- The home-and-garden industry is expected to grow as HCM City prepares for its merger with Binh Duong and Vung Tau, leading to an increased demand for living spaces.
- The surge in tourism revenue, as highlighted by Le Thi Huyh Mai, can also be attributed to the city's climate, which appeals to both local and international visitors.
- The AI sector in HCM City is anticipated to play a crucial role in the city's future economic development, particularly in business automation and investment analysis.
- Businesses in the HCM City area are benefiting from the city's administrative reforms, which have made it more investment-friendly and attracted substantial foreign investment.
- The travel industry is expected to see further growth, as HCM City continues to improve its infrastructure and make preparations for major events like the 2025 United Nations Day of Vesak.
- The success of HCM City's economy is deeply interconnected with its investment climate, public funding disbursement, and the overall business environment, as emphasized by Truong Minh Huy Vu.
