HCM City weighs plans for economic recovery

HCM City authorities are seeking opinions from experts and enterprises on the best ways to revive the economy, a top city official said yesterday at a seminar.

HCM City weighs plans for economic recovery
Dr Tran Hoang Ngan, director of the HCM City Development Research Institute, speaks at a seminar yesterday in HCM City. Photo courtesy of the HCM City Media Centre

Nguyen Thien Nhan, secretary of HCM City Party Committee, said: “Vietnam and HCM City in particular need to open the economy and tourism under specific conditions. The biggest challenge is how to control the risk of infection of more than six million foreign tourists who could enter Vietnam by the end of the year.”

“The recovery of the economy is a huge challenge for the city economy.”

The priority is to prevent the bankruptcy of enterprises by providing income to workers so they can keep their jobs.

“We must ensure that enterprises restore production and services as soon as possible to meet domestic demand,” Nhan said. “It’s important to encourage domestic production to replace imported goods and expand domestic value chains.” 

The city also needs to work closely with major partner countries to open up economic and tourist activities at the appropriate time, according to Nhan.

Digital transformation of enterprises, completion of a digital database of all economic sectors, and promotion of “smart city” implementation should be on the agenda as well.

Nhan said the city targeted disbursement of over 80 per cent of public investment projects by October.

He urged the second-phase construction of new industrial parks and hi-tech parks and called for investment in innovative urban areas in the eastern part of the city. Real estate companies should also be supported as well as innovative start-ups in the city.

Nguyen Thanh Phong, chairman of the People’s Committee, said the city’s economy in the first quarter of the year grew only 0.42 per cent compared to the same period last year, the lowest since 1986.

“The city has over the years achieved an average economic growth rate higher than the national average from 1.1 to 1.2 times. Slower growth will have a negative impact on the country’s growth,” he noted.

There are a number of problems that the city has to address in the coming time, especially since global supply chains have been affected.

Phong said the city must find ways to optimise the purchasing power of the domestic market as many people have become more frugal during this challenging period. 

 

HCM City will focus on industries with high economic growth such as food and beverage production and the processing industry, and manufacture of electronic products, computers and optical products, according to Phong.  

Other industries that need Government support include wholesale, retail, transportation, warehousing, finance and banking, and insurance.

Four scenarios

Dr Tran Hoang Ngan, director of the HCM City Development Research Institute, predicted that the city economy could grow 2.5 per cent under the most pessimistic scenario, while the most optimistic scenario would see a growth of 5.4 per cent.

The city’s economy is predicted to decline due to the outbreak as seen in the low gross domestic product growth (GRDP) of only 0.42 per cent in the first quarter compared to 7.64 per cent in the same period last year, he said. 

The most negative scenario would include a prolonged epidemic, increasing geopolitical instability, world recession, and difficult recovery for the city’s major economic partners such as the US, the EU, South Korea and China.

Under more positive scenarios, the city economy would grow between 3.4 and 4.12 per cent. 

The most optimistic scenario is based on the assumption that the world economy would grow slowly but not fall into recession. If so, the growth of HCM City would be about 5.42 per cent.

However, figures for the first quarter of many countries show that the sign of recession is imminent in countries hit by COVID-19.

According to Ngan, the city should continue to take serious measures to achieve the dual goal of ensuring social security and economic recovery. 

“This year’s economy is definitely declining, but the city needs to ensure that it will grow more strongly next year,” he said.  VNS  

How can Vietnam protect the economy while maintaining public health during the pandemic?

How can Vietnam protect the economy while maintaining public health during the pandemic?

The major goal, according to Vu Thanh Tu Anh from the Fulbright School of Public Policy and Management, is preserving people's lives and businesses in order to quickly recover after the epidemic.

HCM City economy hit by pandemic, things to worsen, warns Party chief

HCM City economy hit by pandemic, things to worsen, warns Party chief

HCM City’s economic growth in the first quarter was only 0.4 percentage points higher than in the same period last year, Nguyen Thanh Phong, chairman of its People’s Committee, told an online meeting on Friday.

 
 

Other News

.
Right adjustment could help Vietnam back as high-performing economy: McKinsey
Right adjustment could help Vietnam back as high-performing economy: McKinsey
BUSINESSicon  18/09/2020 

COVID-19 has interrupted the country’s journey to become a high-performing economy, but the right structural adjustments could help get it back on track, according to McKinsey & Company, a leading US consultant firm.

Chinese funds pour money into Vietnamese market
Chinese funds pour money into Vietnamese market
BUSINESSicon  18/09/2020 

Many Chinese funds are pouring capital into the Vietnamese stock market because of low valuations and further loosening of foreign ownership in the near future.

The pandemic and a positive outlook
The pandemic and a positive outlook
FEATUREicon  18/09/2020 

Nations have closed borders, economies are isolated, and supply chains are fragmented. And Vietnam's economy is no exception.

Grab, MoMo enter e-commerce playing field
Grab, MoMo enter e-commerce playing field
FEATUREicon  18/09/2020 

Grab and MoMo are veterans in their core business fields, but they are the newcomers in the e-commerce market.

Businesses must understand trade remedy implications, says expert
Businesses must understand trade remedy implications, says expert
BUSINESSicon  18/09/2020 

International trade remedies are used by many countries to protect their domestic industries, especially now production has stalled due to the impacts of COVID-19.

COVID-19 woes: Footwear exports likely to fall short of target
COVID-19 woes: Footwear exports likely to fall short of target
BUSINESSicon  17/09/2020 

Footwear exports this year are unlikely to hit the target of US$24 billion because of the fallout of the Covid-19 pandemic.

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 18
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 18
BUSINESSicon  18/09/2020 

Mining industry unable to enjoy tax incentives

FTAs help attract more foreign investors to Vietnam
FTAs help attract more foreign investors to Vietnam
BUSINESSicon  17/09/2020 

Free trade agreements (FTAs) that Vietnam has signed with its partners have been an important factor attracting foreign investments to the country.

Real estate businesses struggling amid pandemic
Real estate businesses struggling amid pandemic
BUSINESSicon  17/09/2020 

The severe economic blows from COVID-19 have forced scores of businesses to suspend operations and even file for bankruptcy, with real estate companies among the hardest hit.

Apartment selling prices on the rise in Hanoi
Apartment selling prices on the rise in Hanoi
BUSINESSicon  17/09/2020 

Apartment prices have increased to a new level, particularly in center city areas.

Gov’t to ask NA to waive charges for water exploitation rights
Gov’t to ask NA to waive charges for water exploitation rights
BUSINESSicon  16/09/2020 

Thousands of businesses will not have to pay for the right to exploit water this year if a plan submitted by the Government is approved by the National Assembly.

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 17
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 17
BUSINESSicon  17/09/2020 

Measures needed to support COVID-19-hit enterprises

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 16
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 16
BUSINESSicon  16/09/2020 

ADB cuts Vietnam GDP growth forecast to 1.8% in 2020

Large growth potential for Vietnam banking services in long-term
Large growth potential for Vietnam banking services in long-term
BUSINESSicon  16/09/2020 

Many listed banks witnessed weak performance of fee income growth in the first six months of the year due to the Covid-19 pandemic.

Number of hotels on sale reaches record in Vietnam
Number of hotels on sale reaches record in Vietnam
BUSINESSicon  16/09/2020 

Hotels for sale is reaching a record number in a decade in Vietnam.

Some businesses still thrive amid COVID-19
Some businesses still thrive amid COVID-19
BUSINESSicon  17/09/2020 

Many consumer goods and food retailers are opening new shops, while others have had to shut down and give back retail premises to landlords.

Hundreds of abandoned real estate projects in Hanoi to be inspected
Hundreds of abandoned real estate projects in Hanoi to be inspected
BUSINESSicon  16/09/2020 

The Prime Minister has assigned the Ministry of Natural Resources and Environment and Hanoi authorities to check reports in local newspapers about 300 pending or abandoned real estate projects in the city.

VN to be only country in region to attain positive growth in 2020: report
VN to be only country in region to attain positive growth in 2020: report
BUSINESSicon  15/09/2020 

Vietnam is expected to be the only Southeast Asian economy to achieve growth this year, with its GDP rising by a likely 2.3 per cent.

Rise for national pride
Rise for national pride
FEATUREicon  17/09/2020 

In the context of the Covid-19 pandemic which that has changed value chains, this is an opportunity for us to rethink and rise. The chance to catch up with the world is huge if the economy is restructured.

Vietnam ranked world’s second M&A attractive market: Euromonitor
Vietnam ranked world’s second M&A attractive market: Euromonitor
BUSINESSicon  15/09/2020 

The country is set to score 102 and 94.6 out of the maximum of 250 in 2020 and 2021, staying behind only the US with its respective scores of 108.9 and 112.5.

 
 
 
Leave your comment on an article

OR QUICK LOGIN