Ho Chi Minh City: Businesses are recovering strongly

Import-export activities of enterprises in Ho Chi Minh City are recovering strongly. Photo: T.H

Production and business improving

According to the survey results of the People's Committee of Ho Chi Minh City on business trends of enterprises in the processing and manufacturing industries, production and business activities in the second quarter of 2022 improved compared to the first quarter of 2022. Specifically, 32% of enterprises think the business situation is better; 39.1% held steady and 28.9% more difficult.

The state-owned enterprise sector has 86.1% of enterprises saying that the production and business situation has improved and remained stable; this rate in non-state enterprises and foreign-invested enterprises is 70.4%, respectively; 68.8%.

Forecasting for the production and business situation in the second quarter of 2022 compared to the first quarter of 2022 is positive, with 38.3% of enterprises giving a better assessment, 39.3% keeping stable and 22.4% more difficult. Of this, 80.6% of state-owned enterprises have a positive view of the production and business situation in the third quarter of 2022, this rate in non-state enterprises and foreign-invested enterprises respectively is 79.8% and 72.3%.

In addition, import and export activities of Ho Chi Minh City maintained a good growth rate, especially the export of corporate goods after a period of slowdown in the first quarter of 2022 (up 3.5% over the same period last year), export turnover of goods in six months has increased again. Specifically, the total export turnover of goods of Ho Chi Minh City enterprises in the first six months of the year through the national border gate was estimated at USD24.9 billion, up 13.8% over the same period (increased by 5.1%).

Ho Chi Minh City's economy continues to have a strong recovery momentum, creating psychology and confidence for people and businesses to feel secure in production and business. Credit institutions in the area continue to maintain low interest rates under the management of the State Bank, in order to create favorable conditions to support customers and businesses affected by the Covid-19 pandemic to restore production and business according to the policy of the Government and the program of socio-economic recovery and development of the city.

The economic situation in the first half of 2022 is still maintaining a recovery momentum, some indicators still decrease but narrow the decrease compared to the previous month. Despite the large openness, Ho Chi Minh City's economy is also affected by the impacts of the Ukraine-Russia war, which is still unpredictable, affecting directly and indirectly on commodity prices, raw material supply and other factors. means of global financial payment create certain difficulties that businesses have been and are having to overcome.

Five industries are likely to recover strongly

In the draft report: "Review and propose to update solutions for the city's socio-economic recovery and development program for the period 2022-2025" sent by the Ho Chi Minh City Development Research Institute to the People's Committee of Ho Chi Minh City recently, proposed a series of solutions for economic and social recovery of Ho Chi Minh City.

According to the Ho Chi Minh City Development Research Institute, after assessing the economic recovery level of the city in the first 6 months of the year, along with a comparative study in the Report on supporting economic recovery after Covid-19 in Southeast Asia this month. In May 2022, of the Asian Development Bank, the Ho Chi Minh City Development Research Institute suggested that updating some solutions for the five sectors with strong resilience in Ho Chi Minh City is necessary.

In particular, the tourism industry needs to implement a number of solutions to support the tourism industry in the short term, creating a sustainable growth momentum in the long term. with solution, restore demand; at the same time, forming new needs and developing capacity to support new needs.

For the agricultural products in the processing industry improving efficiency and transparency of the supply chain; increasing the added value of the industry; pursuing the goal of increasing productivity; building industry resilience; pursuing circular policies regarding food are key.

For the textile and garment industry, it is vital to enhance competitiveness and expand markets; pursue more flexible production and business models. For electronic components industry, upgrade special economic zones; human resource development.

For the e-commerce industry, it is necessary to create a favorable environment to promote the growth of digital commerce; business process development (ITBPO); strengthen connectivity, develop fixed broadband networks through investment in expanding infrastructure such as the power grid and find ways to reduce broadband installation costs; and support skills development.

In addition, Ho Chi Minh City will continue to implement short-term solutions in the last six months of the year. Continuing to implement the recovery program; strengthening preventive medicine, controlling the Covid-19 pandemic and dengue fever.

At the same time, it is necessary to draw lessons and experiences on the people's posture in pandemic prevention and control; implementing Resolution 43 of the National Assembly, Resolution 11 of the Government, ensuring social security, supporting accommodation costs, leaving no one behind, in which accommodation for workers is concerned.

Supporting businesses to access monetary and fiscal packages, extending tax payment and land use fees, and supporting 2% loan interest rates; a focus on digital transformation, digital government, and digital society to make administrative reform faster and more efficient, contributing to improving the business environment, upgrading PAPI, Par Index, PCI. Supporting businesses' digital transformation, digital economy development, circular economy, sharing economy, and green economy. Striving to 2025, the digital economy will account for 25% of the City's GRDP.