The factory of the Kem Nghia JSC in the Tan Phu Trung Industrial Park in Cu Chi district, HCM City (Photo: VNA)

Permanent Vice Chairman of the municipal People's Committee Duong Ngoc Hai reported that the city’s economy has continued its recovery in 2024, with growth improving each quarter.

This year's gross regional domestic product (GRDP) increased by an estimated 7.17% compared to 2023, which is close to the target range of 7.5 - 8%. The industrial and construction sector posts growth of 6.89%, with the index of industrial production (IIP) rising about 7.3% year-on-year, Hai said.

The services and trade sector has grown by 7.7%, while retail sales and consumer service revenue expanded 10.7%, the official said, adding that revenue from tourism in 2024 is expected to reach 190 trillion VND (7.47 billion USD), an 18.8% increase compared to 2023.

The city's total exports through nationwide border gates is estimated at 46 billion USD, up 8.3% from 2023. Meanwhile, the import turnover stands at about 58.6 billion USD, a 5.9% increase compared to last year.

The city also saw a record budget revenue in 2024, which amounts to more than 508 trillion VND, equivalent to 105.3% of the target and up by 13.3% compared to 2023.

Regarding public investment, Ho Chi Minh City allocated more than 79.26 trillion VND under this year's public investment plan. It aims to disburse 60.94 trillion VND by the end of December, or 76.9% of the allocated budget. By the end of January 2025, it hopes to have almost 64.53 trillion VND disbursed, or 81.4% of the total allocated funds.

Despite these achievements, Ho Chi Minh City's economy also faces some limitations, Hai admitted.

He elaborated that the number of new businesses established and their capital registered in 2024 decreased compared to 2023. Specifically, approximately 52,500 new businesses were registered, with total capital of around 400 trillion VND, marking a 1.2% decrease in the number of firms and a 16.6% drop in registered capital. Additional capital registered was approximately 340 trillion VND, falling 39.7%. Overall, total new and additional capital in 2024 is estimated at 740 trillion VND, down 29.1% year-on-year.

Foreign direct investment (FDI) attracted in 2024 is about 4.85 billion USD, a decrease of 18.9% from the previous year. The progress of projects under the smart city building plan has also faced challenges, particularly large-scale and complex projects, while digital transformation efforts have encountered certain obstacles, Hai said.

The official said that in 2025, the city will focus on streamlining the political apparatus to make it lean, strong, efficient, effective, and impactful. It will also accelerate digital transformation, implement the National Assembly's Resolution No. 98/2023/QH15 on piloting a number of special policies and mechanisms for Ho Chi Minh City, and address outstanding problems.

Ho Chi Minh City aims to achieve a GRDP growth rate of over 10% in 2025, with the service sector accounting for more than 60% and the digital economy contributing about 25%. Regarding administrative reform, it will strive to be among the top five localities nationwide in terms of the Provincial Competitiveness Index (PCI) and among the top 15 in administrative reform (PAR-index).

Dinh Khac Huy, Deputy Director of the municipal Department of Planning and Investment, said that in 2025, the city will need to mobilise between 450 - 500 trillion VND of resources for development. He stressed the need to attract investment to priority sectors, and strategic investors to projects such as the international transshipment port, innovation centres, research and development centres, new materials technology, clean energy, and semiconductor manufacturing.

At the same time, it must proactively prepare mechanisms, land and plans, and work hard to support visitors, making it easier for investors to access priority projects in the 2024 - 2025 period, Huy said.