HCM City reported a 7.46 percent year-on-year increase in GRDP in the first quarter compared to 7.08 percent in the same period last year, it was reported at the March 31 meeting of the municipal authorities on socio-economic development in Q1.

Its GRDP was worth nearly 235 trillion VND (10 billion USD) in the January-March period.

The services sector expanded by 7.95 percent and industry and construction by 6.67 percent (the respective rates for the same period last year were 7.8 percent and 6.25 percent).

Retail sales topped 227.5 trillion VND (9.8 billion USD), an increase of 12 percent.

Budget revenues were worth 86.6 trillion VND (3.8 billion USD), or nearly 25 percent of the full-year target and an increase of 18.56 percent.

The city’s designated four key industries - engineering and automation; electronics; chemicals – rubber – plastics; and food processing - continued to perform strongly with an average growth rate of 8.97 percent, higher than the overall industrial output expansion rate of 6.02 percent.  

“The electronics industry grew at 14.2 percent and this is the highest [quarterly] increase in the last few years,” Pham Thanh Kien, director of the city Department of Industry and Trade, told the meeting.

According to the city People’s Committee, enterprise support programmes have achieved good results, with the business and investment environment improving. This has strengthened confidence among investors and entrepreneurs in the city’s economic potential.

This is demonstrated by the investment the city managed to attract -- nearly 575 million USD, an increase of 56.7 percent year-on-year.

Around 8,000 new companies with a combined registered capital of 99.5 trillion VND (4.4 billion USD) received licences during the quarter, increases of 14 percent and 61.7 percent.

Some 1.58 million foreign visitors arrived in the city, an increase of 15 percent, and the tourism sector reported a turnover of 27.8 trillion VND (1.23 billion USD), a 15.6 percent rise.

“Though we have achieved positive results in the first quarter of this year, to accomplish the yearly plans, we must work harder,” Nguyen Thanh Phong, the chairman of the city People’s Committee, said.

While first quarter growth was 7.46 percent, the city targets a yearly growth of 8.4 – 8.7 percent, he pointed out, adding that industries and local administrations need to take strong measures to achieve the targets.

The city has already cut or suggested cuts to administrative procedures, especially with respect to insurance, land, taxation, customs, and labour, to help businesses cut costs, he said.

VNA