The V-shaped economic recovery

In 2022, HCMC identifies the theme of the year as the year of safe adaptation, flexible and effective control of the Covid-19 pandemic, continuing to improve the quality of urban administration, improving the investment environment, and accompanying businesses.

With this theme, the city determines that effective control of the Covid-19 pandemic is a prerequisite for socio-economic recovery and development. At the same time, it will continue to promote the results of the implementation of the 2021 theme by improving the quality of urban administration, continuing to improve the investment environment to open and promote social resources to develop the city. This year, HCMC has set 19 targets in which the growth rate of the city's gross regional domestic product (GRDP) will reach 6-6.5 percent; new jobs will be created for 140,000 laborers.

Bringing the growth rate from negative 6.78 percent in 2021 to 6-6.5 percent in 2022 within just one year is an extremely difficult task. In 2021, we went through the harshest days of the fourth wave of the Covid-19 pandemic with unprecedented destruction. For the first time, economic growth was negative 6.78 percent, an exceptional decline in the past 35 years in the city.

However, in the toughest days of the pandemic, it is meaningful that the city has still retained valuable foundations and precious bright spots. Some industries and fields have still maintained a good growth rate; export turnover is estimated to increase by 2.8 percent over the same period. Foreign direct investment is estimated to increase by 11-15 percent, reaching about US$5.8 billion-US$6 billion. Total state budget revenue in 2021 is estimated at VND381.53 trillion, reaching 104.56 percent of the yearly estimate. HCMC also has more resources from the sharing of the Central Government when approving the rate of budget allocation for the city in 2022 at 21 percent, up 3 percent compared to the rate of the previous five years.

Most importantly, the belief, creativity, and desire to rise in each officer, citizen, and business have not been lost, but have been forged even more strongly through the Covid-19 crisis. During the pandemic, the city has made great progress and development in the application of information technology in pandemic prevention and the handling of online applications. Many enterprises have applied the digital economy and developed e-commerce. Many citizens have set new attitudes and new habits to adapt to Covid-19, knowing how to apply technology more quickly to serve life, work, paperwork, and online procedures. Especially, the more the essence of HCMC people shines, the more love in each person is expanded when we have experienced and understood the pain of our compatriots. Through the Covid-19 storm, the national unity bloc has been tightened. The interaction between the Party Committee, the government, and the people has been strengthened. They are great tangible and intangible values, which are the solid foundation for the recovery and development of the city.

If there is a favorable business environment combined with the timely and effective support of the Central Government, with such inner strength of HCMC, it is possible for the city to make a V-shaped economic recovery. It is also a political determination to help HCMC maintain its position and role as the locomotive of economic growth in the Southern region and the whole country.

Unleashing resources, innovating management

Amid the complicated situation of the Covid-19 pandemic, three major issues have emerged that HCMC needs to pay special attention to. They are city governance in the new situation, the building of a database system and data communication in the operation of the city administration, and innovating management and finding new drivers for future growth. Therefore, the journey of socio-economic recovery and development needs a system of synchronous and feasible solutions with a long-term vision.

In 2021, three pillars, including controlling the pandemic, recovering the economy, and ensuring social security, were carried out simultaneously and harmoniously. The tasks in 2022 are also included in the overall HCMC Socio-Economic Development and Recovery Program for the 2022-2025 period, designed with urgent and focused solutions to restore disruptions and recover the economy. The determination and aspiration to realize economic recovery and development is reflected in the fact that despite facing many difficulties, HCMC still has not adjusted the socio-economic development goals and targets set in the Resolution of the 11th Party Congress of HCMC.

At present, the Covid-19 pandemic remains complicated, with the appearance of the new variant Omicron. The uncertainty and unpredictability of the pandemic require us to be prepared to adapt and avoid the two extremes - neither negligently subjective nor panic-stricken. Everyone needs to proactively comply with pandemic prevention regulations to protect themselves and their relatives and contribute to protecting the community. To protect people's health and lives, HCMC will continue to focus on controlling the pandemic through effectively operating the pandemic monitoring and warning system and strengthening the health system, especially grassroots and preventive healthcare. The city will also continue to increase vaccination coverage and carry out a campaign to protect at-risk people.

Mr. Phan Van Mai, Chairman of the People's Committee of HCMC. (Photo: SGGP)