Downtown District 1, Ho Chi Minh City, February 2023. Photo by VnExpress/Quynh Tran
Ho Chi Minh City’s economy grew 6.54% this year, its strongest first quarter growth since 2020.
It exceeded the 5.5% growth forecast by experts, according to the Ho Chi Minh City Statistics Bureau. The previous highest rate in the first quarter was 4.58% in 2021. Last year, it increased by only 0.7%.
The services sector contributed the most to growth with an expansion of 7.34% year-on-year, according to official data.
Two other pillars of the city’s economy, industry and construction, grew by 5.66% while agriculture, forestry and fishing recorded growth of 0.85%.
For every new company entering the market, one closed, representing a ratio of 1:1, worse than the ratio of 1:0.9 from the same period last year, he adds.
Outstanding loans increased by 8%. Nguyen Khac Hoang, head of the statistics bureau, said the city should focus more on domestic consumption as exports are low.
Public investment should also be encouraged, he said. This year, the city spent only 5.6 trillion dong ($2.26 million), or 7.1 percent of annual public investment, compared to the target of nearly 8 trillion dong .
For the rest of the year, it will be difficult to achieve a high growth rate since it will be a high growth rate compared to last year. This year, the city is targeting growth of 7.5 to 8%.
