HCMC economy forecast to slow down in Q2

A view of HCMC’s Thu Duc City in February, 2024. Photo by Read/Quynh Tran

The HCMC economy is likely to grow at 6% in the second quarter, down from 6.54% in the first, the municipal Statistics Office has said.

The economy has not shown signs of a breakthrough this year, and the growth of some sectors has slowed down, Nguyen Khac Hoang, director of the office, said at a People’s Committee meeting on Friday.
Public spending has also slowed down in the second quarter. The State Treasury Department reported that weekly disbursements never exceeded VND200 billion (US$7.86 million) in April or May.
Nguyen Ngoc Hoa, chairman of the HCMC Business Association, said exporters have enough orders for the second quarter, but face difficulties in meeting green standards.
This could lead to a decline in orders towards year-end, he warned.
To boost economic growth, he suggested focusing on domestic consumption by running promotions to spur consumer spending and solutions to foster wet markets.
Concurring, Bui Ta Hoang Vu, director of the city Department of Industry and Trade, revealed a two-phase shopping stimulus program is planned for the next four to five months.
Truong Minh Huy Vu, deputy director of the HCMC Institute of Development Studies, said the city should boost digital transformation, green transition and labor productivity.
Dr Tran Du Lich said Vietnam’s economy would remain sluggish the rest of this year and possibly next year too.
He recommended improving the efficiency of government agencies to address businesses’ difficulties.
“Without breakthrough changes in operations, it is impossible to develop [the economy].”
Phan Van Mai, chairman of the city People’s Committee, said public investment must be accelerated.
“We need to focus on implementing key projects and administrative reforms.”

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