Ho Chi Minh City has begun to implement a number of measures to gradually revive business activities in the post-social distancing necessitated by the COVID-19 pandemic.

HCMC economy accelerates recovery

Up to now, HCMC has granted business licenses to nearly 30,000 enterprises with a total registered capital of VND667 trillion.

In comparison with the same period last year, the number of business licenses decreased by 7.5%, but the volume of registered capital increased by 34.7%.

According to the Department of Planning and Investment, the top attractive sector was the commercial and service sector with the registered capital of VND584 trillion, an increase of 53.7%over the same period last year.

The industrial and construction sector came second with the registered capital of VND81 trillion, but compared to the same period last year, it decreased by 29.2%.

In contrast, in the processing and manufacturing sector, although the registered capital was only nearly VND19 trillion, it increased by 38.2% compared to the same period last year. 

Moreover, the agriculture, forestry, and fishery sector had VND2.9 trillion of registered capital, two times higher than that in the same period last year.

As for the situation of foreign investment license issuance alone, the total foreign investment capital in the city is still very positive, reaching US$3.25 billion, including newly-registered capital, adjusted capital, and capital contribution and purchase of shares of foreign investors. 

Singapore leads with total investment capital of $813 million, accounting for 25% of total FDI capital in the city, followed by the Republic of Korea with $515 million, accounting for 15.9%.

The remaining countries and territories are mainly the British Virgin Islands, Japan, Cayman Islands, the Netherlands, and the U.S. 

According to the city’s Department of Planning and Investment, compared to the same period last year, total foreign investment dropped by 28%. 

However, in the context of a complicated Covid-19 pandemic, greatly affecting the international trade and investment activities, this is still seen as an optimistic signal.

The Department of Industry and Trade said that although the export failed to keep the high growth momentum as last year, the export turnover of city-based enterprises at border gates across the country still reached $32.6 billion in the first nine months of this year, up 4.9% over the same period last year. Some commodity groups still maintained positive growth. 

To maintain the above growths, HCMC is implementing a range of measures to boost public capital disbursement in the city, such that the rate may reach over 95% by the year-end.

According to the HCMC People's Committee, as of August 15, the southern economic hub has disbursed nearly VND21trillion, reaching 50% of the whole-year set plan for public capital disbursement in the city (compared to over VND9 trillion and 27% of the set plan in the same period last year).

To ensure the economy's stable development under new conditions, Chairman of the HCMC People's Committee Mr. Nguyen Thanh Phong said that HCMC has proactively developed policies and mechanisms to revive the city economy when the epidemic situation was over. The city would relax gradually but have to control properly so that there will be no disregard for COVID-19 disease.

Currently, HCMC is home to 1,643 public investment projects with a total capital assigned in 2020 at over VND42.1 trillion. The disbursement of the capital would have a great significance in promoting the city’s economic growth amid difficulties caused by COVID-19, Phong said.

In order to effectively disburse public investment capital, from the beginning of the year, HCMC has implemented a range of drastic measures, while regularly monitoring the disbursement.

The head of the city’s governing body affirmed that HCMC would make the best efforts in striving to disburse over 95% of the capital assigned by the year-end, with a focus on implementing multiple drastic solutions in the remaining months.