Mr. Phan Van Mai (standing), Chairman of the Ho Chi Minh city People’s Committee. (Source: VNA)

Speaking at a meeting on August 2, Phan Van Mai, Chairman of the municipal People’s Committee, said that to realize this year’s growth target, the city will focus on accelerating public spending for the rest of the year to achieve the growth target, as it has not met its public spending target so far this year.

It has disbursed only 11.8 trillion VND (467.93 million USD) of public investment in the first seven months, or only 14.9% of the annual plan. It aims to disburse 90% of the allocated budget of 86 trillion VND this year.

“At the current rate, it must disburse a minimum of 10 trillion VND each month until the end of the year,” he noted.

The city official has urged contractors of major projects to report any challenges encountered promptly.

He even warned of implementing stringent measures against contractors who fail to perform adequately or do not comply with established standards.

The city has directed agencies to reduce the timeframe required to appraise and approve investment projects by no less than 30%.

A steering committee comprised of specialised groups and project teams has been established to oversee the quality and progress of key initiatives.

In addition, while the city’s exports totaled $26.1 billion this year, up 10.4% year-on-year, there are signs of a slowdown in export growth, according to the Statistics Office.

Major export markets for HCM City such as the US and China are expected to see significant growth in the second half, benefiting its exports.

However, these economies also face challenges that could impede recovery, posing potential risks to export activities.

Mai said the city would also promote domestic consumption and investment to improve total demand this year.

Diversifying export markets and exploring new markets are also crucial strategies to bolster production and business operations, he added.

In addition, the city will prioritise the development of high-tech and green industries.

A recently published report entitled HCM City Macroeconomic Report: Recovery and Challenges forecasts continued economic growth for the city throughout the year.

The annual report, published by the University of Economics of HCM City (UEH) in collaboration with the Statistics Office, showed a resurgence in total demand across multiple indicators related to consumption, investment, and exports.

Achieving a growth target of 7-7.5% this year remains feasible, provided that the global economy continues to recover favourably, according to the report.

Based on data from the first half of the year, the report highlighted a stable economic recovery in Vietnam’s largest city.

The city’s Gross Regional Domestic Product (GRDP) witnessed a growth of 6.46% in the first half.

Its index of industrial production (IIP) was up by 6.2% year-on-year, the highest growth rate in the past three years.

It also saw a 10% year-on-year rise in total retail sales of goods and services in the period.