On February 28, 2025, at the helm of Ho Chi Minh City’s administrative meeting, Chairman Nguyen Van Duc highlighted the city’s significant strides in economic development. Despite recent progress, challenges lurk as the city aims for ambitious growth targets amid simultaneously tackling outstanding issues.
During the meeting focused on the city’s economic and social performance for February and strategies for March, Chairman Duc emphasized the pressing nature of upcoming responsibilities. The city set itself the goal of achieving growth of over 10% for 2025, reflecting the need for immediate and effective actions to bolster economic activity.
"There are heavy tasks at hand, and with limited time, meeting our growth targets is imperative," Chairman Duc remarked, urging local authorities to hone their focus on revitalizing economic parameters quickly. Amid these ambitions, the city is also commemoratively organizing events for the 50th anniversary of national reunification and steering its administrative restructuring, which involves reducing the workforce by 10-20%.
To meet these objectives, the emphasis on public investment is palpable. Duc noted, "We are like one grand construction site until 2035, focusing on sustainable development. We must eliminate economic bottlenecks to pave the way for smoother operations and revenue generation." His assertions highlight the city’s current economic terrain, where businesses are increasingly withdrawing, raising concerns about the economic climate.
With the alarming rate of company closures increasing by 20%, Duc outlined the necessity of analyzing the underpinning causes, urging stakeholders to re-evaluate service quality and effectiveness. The urgent call to action is encapsulated with his plea: "We must be mindful of the reasons behind these closures and provide suitable remedies!"
Dr. Truong Minh Huy Vu, head of the Ho Chi Minh City Development Research Institute, contributed insights on achieving growth targets. He indicated the city needs to attract over 600 trillion VND through social investment and public expenditure as part of its recovery framework for 2025. He stressed, "The pivotal question is how to facilitate public fund disbursement and capital absorption throughout the economy."
Dr. Vu also advocated for deliberate enhancements to the business ecosystem, emphasizing innovation and entrepreneurship. Notably, he pointed out systemic imperatives, including reducing business costs and bureaucratic processes by 30%, reflecting initiatives for creating a competitive investment environment.
Crucial investment projects such as Ring Road 3, Ring Road 4, and the metro system are pressing priorities. Dr. Vu reiterated, "These infrastructures will significantly boost our financial growth potential and nurture fundamental development for the city." He proposed prioritizing science and technology investments, as well as creating an international financial center, aligning with the overarching goals for sustained economic advancement.
Highlighting successes, Lê Thị Huỳnh Mai, the city’s Director of Planning and Investment, reported promising economic indicators for early 2025. Retail sales and service revenue for the first two months reflected growth of 15.9% year on year, marking strong economic activity. Specifically, export figures soared by 19.17%, with total tourism revenues jumping by 30.2%, aided by increased international arrivals.
Transportation metrics mirrored these advancements, with passenger traffic swelling by nearly 19%, indicating renewed consumer confidence following challenging periods. Overall, by February 21, the city had disbursed over 1,800 billion VND for public projects, reflecting proactive financial management and infrastructure development.
Despite the economic confidence, challenges remain as the establishment of new businesses dipped by 37.6%, signalling potential headwinds for the entrepreneurial ecosystem. The city is attentive to these fluctuations, with proactive measures positioned to address systemic issues affecting business commencement.
With decisive leadership under Chairman Duc, Ho Chi Minh City is positioning itself to meet its ambitious growth targets through comprehensive infrastructure development, strategic investment, and targeted policies focused on enhancing the business environment. The city's commitment to overcoming existing challenges will be pivotal as it navigates its pathway toward economic resilience and growth.