HCMC enjoys good economic recovery, development signals

Socio-economic recovery and development have been seen in Ho Chi Minh City (HCMC) – the biggest economic hub in southern Vietnam, with strong growth in production and business activities.
HCMC enjoys good economic recovery, development signals ảnh 1 HCMC (Photo: SGGP)

In May, the city’s Index of Industrial Production (IIP) rose 6.5 percent over the previous month and 9 percent year on year. As a result, the city’s IIP in the first five months of this year expanded 2.6 percent year on year.

Strong rises were seen in many sectors, including processing-manufacturing at 44.8 percent and rubber and plastic product production 33.1 percent.

A representative from the city Department of Industry and Trade said that trade and service activities in the city started to recover from several months ago. Despite the strong increase in petrol price, local firms have struggled to overcome difficulties from the rise in material prices towards recovery and development, said the representative.

Statistics showed that total revenue from retail and service activities in the city in May reached VND96.28 trillion (US$4.15 billion), up 0.8 percent over April and 10.4 percent compared to the same period last year. In the first five months of 2022, the figure hit VND456.15 trillion (US$19.67 billion), a rise of 0.6 percent year on year.

Local firms attributed the increase to recovery in the number of tourist arrivals after the Government decided to fully open the tourism sector from March, especially during the 31st Southeast Asian Games, and the increase in wedding party bookings.

Meanwhile, the expansion of online shopping as well as development of logistics technologies have bolstered trade activities. Vietnam ranks second in Southeast Asia in e-commerce, and the sector’s value is forecast to reach US$39 billion in 2025.

As of the end of the first quarter of this year, more than 8 million consumers in Vietnam involved in online shopping, 55 percent of which come from urban areas. A survey showed that 99 percent of them intend to continue to shop online in the coming time.