Striving to rise
"Due to the difficult economic situation, the number of customers visiting the restaurant has dropped sharply. Our revenue is only 50% of what it used to be. However, I have to find many solutions to improve the situation.""That's what Ms. Hanh, the owner of a noodle shop on Cach Mang Thang Tam Street, District 10, said."
Ms. Hanh said that since the beginning of 2023, the number of customers eating noodle soup has decreased significantly. Previously, her shop could sell 300-350 bowls a day, but in 2023, it only sold about 200 bowls a day. She has explored many options to maintain the business in order to pay salaries to her staff.
People and businesses in Ho Chi Minh City are striving in business and production. (Photo: BL)
According to Ms. Hanh, she has partnered with delivery apps to sell additional noodle soup to customers who order online. She also instructed her staff to deliver directly to customers within a 2km radius and offered discounts for orders of 200.000 VND or more. The restaurant also extended its opening hours to 23 PM instead of 21 PM to increase revenue.
Ms. Hanh worked with the landlord to reduce the rent and requested better prices from her pork suppliers to help her overcome the current economic difficulties. As a result, her business has improved significantly over the past three months compared to the beginning of the year.
Mr. Vu Van Tuan, director of a logistics company in District 7, shared that due to the difficult economic situation and dwindling orders, his fleet of container trucks and other trucks has less work than before. His company was forced to expand into agricultural products to increase revenue and create jobs for workers. After struggling to find partners, the company successfully exported pomelos and coconuts to the European market.
"The company's revenue has increased by about 25% compared to the beginning of the year, and employees' incomes are also more stable. When the economy faces challenges, entrepreneurs have to find new directions.""That's what Mr. Tuan said."
Businesses in the city are exploring new avenues to overcome difficulties. (Photo: BL)
According to VTC News, people and businesses in Ho Chi Minh City are still striving to produce and conduct business amidst many economic challenges. City leaders are also seeking various solutions to boost the city's economy.
Specifically, in 2023, many trade promotion and consumer stimulus programs were implemented. Typical examples include trade promotion programs with the European Union (EU), the United States, Canada, Poland, India, China, Mexico, Singapore, Malaysia, and others.
In the first 11 months of 2023, Ho Chi Minh City attracted over $3 billion in foreign investment. Of this, Singapore and Malaysia were the two countries with the highest proportion of investment, accounting for over 43% and 21% respectively.
In addition, Ho Chi Minh City has implemented many consumer stimulus programs to increase people's purchasing power. Typical examples include "Shopping Season" programs, Flash Sale holidays, and a series of exhibitions and market stabilization programs.
The Ho Chi Minh City Department of Industry and Trade also organizes supply-demand connection conferences between the city and other localities to facilitate the flow of goods.
Over the past 11 months, Ho Chi Minh City's total retail sales of goods and services reached VND 1,081 trillion, an increase of 9,2% compared to the same period in 2022. Of this, retail sales of goods reached over VND 634.000 trillion, an increase of 11,2%; accommodation and food services reached over VND 99.000 trillion, an increase of 30,2%; and travel and tourism services reached over VND 10.000 trillion, an increase of 70,2%.
Retail sales of goods and services showed many positive signs.
The city's Industrial Production Index (IIP) is also gradually recovering with a growth rate of 4,1%. In particular, the IIP of many key industries has shown good growth, such as electronics (up 6%), mechanical engineering (up 7,4%), and pharmaceuticals (up 19,1%). Other industries such as electricity, mining, manufacturing, and textiles are also growing.
Boost public investment and exports.
Besides boosting domestic production and consumption, Ho Chi Minh City is also focusing on accelerating the disbursement of public investment capital and exports, as these are the main pillars for the city's economy to overcome the current challenging period. However, disbursing public investment remains a difficult problem for the city.
At the recent 13th session of the 10th term of the Ho Chi Minh City People's Council, Mr. Phan Van Mai, Chairman of the City People's Committee, acknowledged that the general difficulties of the global and Vietnamese economies are also strongly affecting the city's economic development.
Mr. Phan Van Mai, Chairman of the People's Committee of Ho Chi Minh City, acknowledged that the city still faces many difficulties. (Photo: Quang Phong)
As of December 6th, Ho Chi Minh City had only disbursed 35.157 billion VND, reaching 51,2% of the plan. However, the city remains committed to its goal of disbursing 95% of public investment funds, and at least 80% of the allocated plan.
Thus, with the task of disbursing over 68.800 billion VND in 2023, Ho Chi Minh City is forced to disburse nearly 30.000 billion VND in the remaining 17 days of the old year. This is an extremely challenging task for the city.
Representatives from the Ho Chi Minh City Department of Planning and Investment stated that the city's public investment disbursement target is unlikely to be met due to numerous projects facing obstacles and difficulties in land clearance. The city currently has approximately 16.900 billion VND in undisbursed capital, accounting for nearly 25% of the total public investment capital for 2023.
Regarding the import and export sector, in response to VTC News, a representative of the Ho Chi Minh City Customs Department acknowledged that, despite the city's agencies and departments making every effort to implement many key tasks, the current difficult situation makes it unlikely that the targets and plans set at the beginning of the year will be achieved.
According to a representative of the Ho Chi Minh City Customs Department, in the past 11 months, the volume of import and export goods processed for customs clearance at this unit reached over 106 billion USD, a decrease of more than 18 billion USD (approximately 15%) compared to the same period last year. The city is currently experiencing a trade deficit of over 5 billion USD.
According to a representative of the Ho Chi Minh City Customs Department, the sharp decrease in import and export volume has also affected the unit's state budget revenue collection. As of the end of November, the Ho Chi Minh City Customs Department collected over 110.225 billion VND in state budget revenue, equivalent to 75,6% of the mandated target (145.800 billion VND).
Based on these results, the Ho Chi Minh City Customs Department estimates that the total state budget revenue for the whole year of 2023 will reach approximately 121.000 billion VND, equivalent to 82,99% of the mandated target; a decrease of 15,41% compared to 2022, representing an absolute decrease of over 22.000 billion VND.
In the first 11 months of 2023, import and export turnover in Ho Chi Minh City decreased by 15% compared to the same period last year. (Photo: Bang Tam)
Economist Le Thanh Long noted that in 2023, the Ho Chi Minh City People's Committee and its departments made great efforts to promote economic development. However, the increasingly unpredictable global and Vietnamese economic landscape makes it difficult to achieve the city's major goals. For example, the city only estimated a growth rate of about 5,8% in 2023, while the previous target was 7,5-8%.
“Imports and exports have decreased sharply, and the disbursement of public investment is also difficult to meet targets. However, with the current efforts, the city's target of 7,5% growth in 2024 is entirely achievable. The issue is that Ho Chi Minh City needs more time to implement it,” Mr. Long said.
According to Mr. Long, in addition to the city's determination, districts, counties, and Thu Duc City also need to focus on supporting people and businesses. Local authorities need to create favorable conditions for production and business for enterprises and people, as well as introduce open policies and minimize cumbersome and unnecessary procedures.
Furthermore, this is also a time for banks and financial institutions to join hands with the government, businesses, and people of the city to support production and business capital, "loosen" lending conditions, and create momentum for economic growth.
In addition, businesses also need to diversify their products, find new markets or suitable niche markets. They should diversify their business platforms and distribution methods. Currently, cross-border sales are also a trend for many small and medium-sized enterprises in the city.
Despite facing numerous economic challenges, when engaging with foreign investors, Ho Chi Minh City leaders consistently adhere to the city's green growth and sustainable development strategy, refusing to sacrifice the environment for growth targets.
In the coming period, Ho Chi Minh City will focus on four key areas: green resources (highly skilled human resources, green finance, green connectivity/cooperation); green infrastructure (green energy transition, clean water and water conservation, resource circularity); green behavior (green consumption, green transportation, green construction); and priority sectors/fields (high-tech manufacturing, green startups – innovation, green tourism, green food, Can Gio Green).
According to the Ho Chi Minh City People's Committee, out of the 21 key socio-economic indicators for the city in 2023, the city is expected to achieve 13 and fail to achieve 8.
In 2024, the City People's Committee will adjust and supplement 18 key indicators, divided into 5 groups: economy, society, urban development, administrative reform, and national defense and security.
In the economic sector, Ho Chi Minh City aims for a GRDP (Gross Regional Product) growth rate of 7,5-8%, achieving 100% of the state budget revenue target; striving for total tourism revenue exceeding 190.000 billion VND, with approximately 6 million international visitors; and ensuring 100% of information technology infrastructure is reviewed and upgraded, guaranteeing seamless connectivity from the city level to the district, ward, commune, and town levels.
In urban areas, the city aims for a transportation land ratio of 14,4%, an average road density of 2,4 km/km2, a newly constructed housing area of 8 million square meters, and an average housing area per capita of 22,06 m2/person.
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