Breakthrough in the service and tourism sector
In 2024, Ho Chi Minh City's GRDP will reach 7.17%, lower than the set target of 7.5 - 8%. Therefore, the growth target of 10% in 2025 requires many breakthrough solutions, especially in policy reform and stimulating domestic consumption.
Dr. Nguyen Xuan Thanh - lecturer of Public Policy at Fulbright University Vietnam - said that the service sector, which accounts for about 65% of Ho Chi Minh City's economic structure in 2024, will only grow by 7.7%. Therefore, to achieve 10% growth, services need to make a breakthrough. Instead of expecting too much from exports, Ho Chi Minh City should shift its focus to stimulating domestic consumption. Strengthening social security and building trust will be the key to boosting people's spending. At the same time, stabilizing the corporate bond market by 2025 will play an important role in improving consumer sentiment, thereby creating momentum for economic growth.
According to Dr. Nguyen Xuan Thanh, Ho Chi Minh City is being significantly affected by the stagnation of private investment due to concerns about legal risks. Accessing, promoting and facilitating registered FDI projects to be disbursed this year should be a top priority.
Dr. Tran Duc Anh - Deputy Director of the Central Institute for Economic Management (CIEM) - emphasized the role of the tourism industry in stimulating demand. He said that Ho Chi Minh City needs to increase attracting international visitors, combined with organizing cultural events, festivals and entertainment.
“2025 is the 50th anniversary of the Liberation of the South and National Reunification. With about 5-6 major events held each month, this will be an opportunity to promote consumption and tourism,” Mr. Anh commented.
Mr. Nguyen Duc Lenh - Deputy Director of the State Bank of Vietnam, Ho Chi Minh City branch - said that administrative reform and public investment disbursement will be the fastest solutions to create breakthroughs.
“Real estate is a key sector. When real estate projects are cleared of obstacles, capital will flow, creating a strong spillover effect for the economy,” said Mr. Lenh. According to Mr. Lenh, the development of the international financial center of Ho Chi Minh City will attract foreign investment.
3 key solutions
Chairman of the Ho Chi Minh City People's Committee Phan Van Mai emphasized that to achieve the growth target of 10% by 2025, the city will focus on implementing three key groups of tasks and solutions.
First, Ho Chi Minh City aims to mobilize a total social investment capital of VND600,000 billion in 2025. Of which, public investment capital is expected to be about VND112,000 billion, the rest is from non-budgetary sources, including domestic and foreign investment. To achieve this figure, the city will actively implement investment attraction mechanisms in the form of public-private partnership (PPP) on the basis of Resolution 98.
Second, focus on resolving pending projects, especially those facing difficulties in legal procedures, site clearance or slow progress. The city also promotes the implementation of key public investment projects.
Third, administrative reform will be the focus to create an open and transparent investment environment. To increase efficiency in management and operation, Ho Chi Minh City will apply two new management formulas: “1-3-7” and “3-3”.
The 1-3-7 formula is used to resolve backlogs, requiring staff to receive and assign processing within 1 day, coordinate processing within 3 days, and complete the entire work within 7 days. The 3-3 formula is applied to special task forces, stipulating that each incident must not meet more than 3 times and the interval between meetings must not exceed 3 weeks. This approach aims to tighten administrative discipline, strictly handle cases of delay and shirking responsibility.
"With the determination and consensus of the entire system, the city can mobilize resources, put cash into circulation and achieve the growth target of 10% in 2025," said Mr. Phan Van Mai.
