Low economic growth

The chair of the municipal People’s Committee Phan Van Mai reported that the city’s first quarter performance fell short of the desired levels, with the gross regional domestic product (GRDP) growing 0.7 percent compared with the first quarter of 2022. The real estate and financial markets faced numerous difficulties, while banks had to cope with increasing bad debts and bond maturity pressure. Businesses continued to cut their labor amid declining orders.

Phan Van Mai said that given the difficulties, HCMC will be hard pressed to achieve the 7.5-8 percent economic growth target it set for 2023. The municipal People’s Committee asked the PM to consider the establishment of a government working group to conduct research on potential engines to drive the city’s growth in accordance with Politburo Resolutions 24-NQ/TW and 31-NQ/TW.

HCMC also proposed amendments to Government Decree 152/2020/ND-CP on foreign workers in Vietnam and recruitment and management of Vietnamese workers employed by foreign organizations and individuals in Vietnam, and specific mechanisms for implementation of rooftop solar power projects. The city asked for the right to price public irrigation services and products. To deal with real estate market difficulties, HCMC proposed that the working group resolve problems related to land use by equitized State-owned enterprises.

Minister of Industry and Trade Nguyen Hong Dien (standing) addressed the meeting between the Government’s Standing Committee and Ho Chi Minh City Party Committee on April 16

MoIT-proposed solutions

Addressing the meeting, Minister of Industry and Trade Nguyen Hong Dien proposed solutions to help HCMC promote economic growth.

First of all, Minister Dien asked the city to concentrate on supporting production and trade recovery, especially of small and medium enterprises, and on human resource development to ensure sufficient labor supply, especially for companies with foreign direct investment (FDI) and those investing in new technology. At the same time, he asked the city to stimulate domestic consumer demand, accelerate investment in major projects and make the most of opportunities presented by free trade agreements (FTAs).

In addition, Minister Dien asked HCMC to speed up planning and resolve problems related to infrastructure, especially transport and logistics infrastructure. In his opinion, the city should make effective use of specific mechanisms under the guideline of the Party, the National Assembly and the Government to mobilize resources for development. HCMC should prepare its industrial zones and clusters in terms of land and infrastructure to attract major investment, while accelerating industrial restructuring, focusing on the development of basic industries.

Minister Dien said HCMC should bring into play its central role in linkages for industry and trade development nationwide. The city should promote two new driving forces of economic growth: e-commerce and the night-time economy. Further, it should make effective use of FTA opportunities to diversify and increase exports, focusing on high-tech products.

Finally, Minister Dien asked HCMC to promote creative innovation and digital transformation, continue to accelerate administrative reform and improve the business and investment environment; speed up public investment projects; create a boost for the production of construction materials, machinery and equipment; generate employment and increase worker incomes; and resolve problems facing the real estate market.

Easing difficulties for business, residents

In his closing speech, PM Pham Minh Chinh said he basically agreed with the report on HCMC’s problems. The PM asked the city to follow the guidance of the Party Central Committee, the Politburo, the National Assembly and the Government in resolving difficulties for businesses, helping them promote production and trade, generate employment, and boost creative innovation through technology application.

The PM asked ministries and sectors to support HCMC in implementing specific tasks, first of all in planning. Appropriate measures should be taken to facilitate business access to capital resources, while reducing and extending the time for payment of taxes, fees and land rent to ease difficulties for businesses. Government Resolution 33/NQ-CP should be effectively implemented to promote healthy and sustainable development of the real estate market. A working group headed by the chair of the HCMC People’s Committee should be established as soon as possible to ease difficulties for businesses and residents.