Manufacturing electronic spare parts in Saigon Hi-tech Park. (Source: VNA)

However, adverse developments such as conflicts, inflation, and global financial issues leading to a widespread decrease in demand have had a significant impact on the economy of Vietnam in general, and Ho Chi Minh City in particular.

In such context, since early this year, Ho Chi Minh City has actively adopted a series of measures to unlock resources, fulfill economic growth targets, and ensure social welfare both in the short and long run.

The latest survey by the municipal Union of Business Associations in February showed that businesses continue facing difficulties due to the prolonged decline in orders since late 2022. Specifically, orders for apparel, wood products and construction materials to key markets decreased by 30-60%. The increase in inventory has resulted in the lack of cash flow while firms without orders had to cut workforce or suspend operations.

In face of the downturn, the municipal authorities implemented many credit programmes to assist businesses, enhanced trade promotion to stimulate demand, renewed promotional activities to market products and images of businesses in the community.

Since the beginning of this year, dozens of trade and investment promotion programmes have been held at home and abroad via seminars and business-to-business (B2B) networking.

In the first quarter this year, nearly 500 million USD in foreign direct investment poured into the city. The total value of foreign-invested projects rose by 22.4% year-on-year.

Chairman of the municipal People’s Committee Phan Van Mai said the city is building mechanisms to unlock resources, especially foreign and private investment for the city’s technical, socio-cultural, sport and tourism infrastructure.

He added that the city attaches importance to regional and sectoral connectivity, considering it one of the important resources for its development.

Ho Chi Minh City has taken initiative in collaborating with localities in the Central Highlands, southeastern and Mekong Delta regions to build transport infrastructure and production and marketing chains.

The city benefits the most from the expansion of development space, accessing many innovative and creative ideas as well as various development models, he said.