Ho Chi Minh City promotes public investment, promotes the economy to remove difficulties for businesses

DNHN - The disbursement of public investment capital in the first quarter of 2023 only reached 2% of the total allocated capital, while the total state budget revenue was estimated at 124,700 billion VND, or 26% of the year's estimate.

At the meeting on the socioeconomic situation in the first quarter and tasks and solutions in the second quarter of 2023, Le Thi Huynh Mai, director of Ho Chi Minh City's Department of Planning and Investment (MPI), stated that in the first quarter of this year, Mr. In 2023, Ho Chi Minh City will have five out of nine key service industries with positive growth, including wholesale and retail expansion, finance, banking, and insurance, scientific and technological professional services, education and training, and the lodging and food service industry. The remaining four sectors, including transportation and storage, information and communication, real estate business, healthcare, and social relief activities, experienced negative growth.

Gross domestic product (GDP) growth in Ho Chi Minh City is estimated at 360,600 billion VND, up 0.7% from the same period in 2022. This is the lowest growth rate of the five cities governed centrally, elevating the city to the next tier.HCM is one of the ten localities in the country with the lowest growth rate.

The estimated total state budget revenue is 124,700 billion VND, which represents 26% of the annual estimate. Total local budget expenditures amount to 9,500 billion VND, which is 7% of the estimate and 8% less than the same period last year.

Notably, the public investment capital disbursement rate in HCMC is extremely low. In particular, on March 24 it only received 952 billion VND, which represents 2% of the total allocated capital of over 43,440 billion VND. Ho Chi Minh City intends to effectively distribute public investment capital as a "primer" for social investment, but this makes the city's growth objective difficult to achieve.

Many analysts predict that beginning in the fourth quarter of 2022, the economy will remain volatile and unpredictable throughout the first few months of 2023. However, the 0.7% growth rate is unexpected and causes pressure. The annual economic growth target for the city is between 7.5% and 8%. Consequently, many of the statements made at the meeting focused on analyzing the causes and proposing solutions to restore economic growth to the city.

Analyzing the causes of many limitations, Ms. Mai stated that Ho Chi Minh City's economy was affected by the global decline; the real estate market and financial market faced many difficulties, bad debts of many banks; local businesses continue to reduce labor and face more difficulties in orders and capital sources; consumer purchasing power has decreased...

Mr. Nguyen Ngoc Hoa, chairman of the Ho Chi Minh City Business Association (HUBA), stated that beginning in April, HUBA will deploy a group of industry leaders with solutions and programs to stimulate economic growth beginning in the second quarter of this year. Specific, structured, and essential work processes will lead to the recovery of the entire industry.

Ho Chi Minh City should promote niche markets, new markets, and uninterested markets such as South America, the Middle East, etc. Mr. Nguyen Ngoc Hoa suggested that the People's Committee of Ho Chi Minh City will swiftly evaluate and form an opinion regarding the stimulus program for businesses to begin implementing the project because if businesses deploy early, they will not be supported by the stimulus program.

Secretary of the Ho Chi Minh City Party Committee Nguyen Van Nen suggested at the meeting that each branch and field examine what has been done, is being done, and will be done with the utmost seriousness to propose. Complete the proposed term by developing solutions for the second quarter and the remaining quarters of the year and planning for the subsequent years.

The Director of the Department of Planning and Investment provided 12 key implementation solutions for the second quarter of 2023 and stated that Ho Chi Minh City will concentrate on resolving the group of late tasks from the first quarter, resolutely avoiding further delays. the second quarter to the third quarter, beginning with the first quarter.

Ho Chi Minh City will also actively collaborate with central agencies on the draft Resolution to replace Resolution 54 during the second quarter of 2023 to complete the Government report for submission to the National Assembly for approval at the May meeting. Simultaneously, develop a plan to implement the new Resolution immediately following its approval by the National Assembly.

Ho Chi Minh City simultaneously implemented a 2023 action plan to promote the disbursement of public investment capital. It is proposed to invest in the construction of a solid waste treatment and energy recovery plant in the Complex. Treat Northwestern solid waste using the PPP method; expedite the construction of the T3 station, Metro 1, Rach Xuyen Tam project, An Phu intersection, and the expansion of national highway 50... and the construction has begun.

P.V