HCM City (VNS/VNA)🌜 — Ho Chi Minh City residents increased their spending during the Tet (Lunar New Year) holiday, with total retail sales and consumer service revenue estimated at 108 trillion VND (4.3 billion USD) in January, a rise of 7.5% year-on-year.

Speaking at a recent meeting on socio-economic development, Chairman of the municipal People’s Committee Phan Van Mai highlighted the positive economic indicators for January. Retail sales of goods reached 53.7 trillion VND in January, up 11.5% year-on-year, while accommodation and food service revenue rose to 12.8 trillion VND, up 21.6%. In addition, travel service revenue was estimated at 2.6 trillion VND, up 17%. Total state budget revenue amounted to 67.3 trillion VND, achieving 12.9% of the annual target. The consumer price index (CPI) rose by 0.92% from the previous month and by 4.29% year-on-year. Tourism revenue exceeded 18.3 trillion VND in January, a 42.6% increase, contributing to total budget revenue of 72.6 trillion VND. During the nine-day Tet holiday, tourism revenue reached nearly 7.7 trillion VND (307 million USD), a 17.4% rise year-on-year, with the city welcoming 87,358 foreign visitors, up 16.5%. Despite real estate revenue reaching nearly 23 trillion VND in January, a 3.3% decline from the previous month, it still accounted for 59% of service revenue. Mai said: These socio-economic results are encouraging and lay a strong foundation for the city’s future growth. Le Thi Huynh Mai, Director of the Department of Planning and Investment, also spoke at the event and announced plans for public investment projects totaling over 84 trillion VND, aiming for complete allocation by the end of the first quarter. The city also intends to undertake 10 public-private partnership projects with an estimated investment of 100 trillion VND by 2025, focusing on health care, education, sports, and culture, she added. Projections indicate that foreign direct investment (FDI) is expected to reach 66 trillion VND by 2025, while the private sector is anticipated to contribute 442 trillion VND. The city will implement a strategic plan to enhance FDI attraction from 2023 to 2025, with a vision extending to 2030, according to Mai.

Double-digit growth

The country’s largest economic hub has set an ambitious goal of achieving double-digit economic growth annually over the next five years, which requires industrial growth exceeding 10% during this period, according to Mai. He said to achieve this target, the city will enhance its institutional framework and infrastructure, focusing on transport, energy, logistics, and digital systems. It also plans to foster an ecosystem that promotes science and technology, innovation, digital transformation, and finance, he added. The city will implement key policies based on a recent National Assembly resolution addressing planning, public investment, and urban development. It will actively seek partnerships with domestic and foreign investors to finance essential projects that will bolster its financial infrastructure. Mai expressed confidence in the potential for increased investment and job creation, stating, If everything proceeds according to plan, we can achieve our growth target of over 10% annually by 2030. However, the official also acknowledged significant challenges facing the city, including declines in import-export turnover, a 9% drop in the industrial production index, and a 33.3% decrease in FDI in January./.