In the first eight months of 2020, Ho Chi Minh City's economic indicators were recovering and showing signs of growth, but the number of newly established businesses decreased, while the number of businesses ceasing operations or dissolving continued to increase due to the impact of the Covid-19 pandemic.
According to a report by the Ho Chi Minh City Department of Planning and Investment, the industrial production index (IIP) in August is estimated to have increased by 4,0% compared to the previous month, with the manufacturing sector increasing by 4,6%; electricity production and distribution increasing by 2,8%; and water supply and waste treatment increasing by 2,1%.
Assessing the city's economic situation over the past eight months, Ho Chi Minh City Chairman Nguyen Thanh Phong said that, despite being affected by the Covid-19 outbreak, the city's economy is generally showing signs of gradual recovery and is likely to grow rapidly in the fourth quarter of 2020.
The recovery is reflected in the increased indicators of four key industries and export turnover. The indicators (overall for the first eight months of 2020) are as follows:
- Industrial Production Index (IIP) increased by 2,1% year-on-year (compared to a 7,1% increase in the same period last year). For the four key industrial sectors, the increase was 2,5% year-on-year (compared to a 6,4% increase in the same period last year).
- Regarding the city's export turnover, the total for the first eight months reached US$28,4 billion, an increase of 4% compared to the same period last year (the same period last year saw an increase of 8,9%).
Although economic indicators are recovering and showing signs of growth, the number of newly established businesses is decreasing, while the number of businesses ceasing operations or dissolving continues to rise due to the impact of the Covid-19 pandemic.
According to statistics from the Ho Chi Minh City Department of Planning and Investment, in the first eight months of 2020, Ho Chi Minh City saw the establishment of 26.543 new businesses, with a total registered capital of VND 562.199 billion, a decrease of 6,75% in the number of businesses but an increase of 23,29% in registered capital compared to the same period last year.
From the beginning of the year to August, Ho Chi Minh City recorded 21.266 businesses ceasing operations at the Ho Chi Minh City Tax Department, an increase of 5,35% compared to the same period last year; the number of businesses completing dissolution procedures was 3.566, an increase of 12,31% compared to the same period last year; and the number of businesses temporarily suspending operations was 10.382, an increase of 14,7% compared to the same period last year.
According to data released by the Ho Chi Minh City Department of Planning and Investment, the total amount of public investment capital disbursed as of August 23, 2020, as confirmed by the city's State Treasury, was VND 21.279 billion, reaching 50,5% of the city's total allocated capital plan of VND 42.139 billion.
The Chairman of Ho Chi Minh City stated that, in the context of the still complex Covid-19 pandemic, the disbursement of public investment capital is a bright spot in the city's economic picture, with the disbursed capital being 2,35 times greater than the same period last year, and the disbursement rate also increasing by more than 1,89 times compared to the same period last year. Due to the impact of the Covid-19 pandemic, accelerating public investment will boost the city's economic development.
Along with accelerating the disbursement of public investment, the Chairman of Ho Chi Minh City requested several city departments and agencies to prepare for the inauguration of many projects funded by the state budget, such as the An Suong underpass; the An Phu Dong steel bridge; the new Eastern Bus Station; and the second branch of the Oncology Hospital… At the same time, preparations should be made for the commencement of several projects such as dredging the Soai Rap channel and the groundbreaking ceremony for the Ho Chi Minh City Creative Startup Center.
To further accelerate the disbursement of public investment capital, Ms. Le Thi Huynh Mai, Director of the Ho Chi Minh City Department of Planning and Investment, said that the Department will soon submit a draft plan to transfer capital from low-disbursement projects to high-disbursement projects. Next week, they will submit an action plan to accelerate public investment disbursement from now until the end of the year to reach 95%.
