Ho Chi Minh City. — File Photo

HCM CITY (VNS) — HCM City has maintained economic growth in the first seven months of 2014, with increases in wholesale and service turnover, and expansion of industrial production, heard a meeting to review socio-economic development of HCM City yesterday.

According to a report from the city's People's Committee, in the first seven months, total wholesale turnover of the city reached VND336.380 trillion (US$15.85 billion), a year-on-year increase of 12.8 per cent.

Despite difficulties arising due to China's placement of the oil rig in the continental shelf of Viet Nam in May, the city's export turnover rose to nearly $16.4 billion, up by 3.5 per cent over last year.

Major export increases were in pepper (up by 85.5 per cent); vegetables (48.5 per cent); machinery, equipment and spare parts (37 per cent); seafood (14.8 per cent); coffee (14.6 per cent); rice (11 per cent) and garments (8.4 per cent).

Meanwhile, the city's total imports went down by 8 per cent over the same period last year, to $14.1 billion.

The city's industrial production increased by 6.2 per cent over last year, with major increases (7.2 per cent) in mechanics, chemicals, electronics, plastics and rubber.

Foreign direct investment (FDI) totalled $1.1 billion, a year-on-year increase of 80.2 per cent.

In the same period, the city received nearly 2.4 million foreign visitors, up by 9.1 per cent over 2013.

Total revenue of the city's tourism sector in the first seven months reached nearly VND52 trillion ($2.45 billion), an increase of 8.5 per cent over last year.

The chairman of HCM City People's Committee, Le Hoang Quan, said despite difficulties and increases in fuel prices, the city CPI (consumer price index) rose by only 0.12 per cent, the lowest in the past few years, while the city's exports and industrial production were on the rise.

These increases indicate that the city's economy has developed well and has not been too dependent on overseas markets.

Tran Anh Tuan, deputy head of HCM City Institute for Development Study, said despite signals of stable economic growth, the city would face difficulties and challenges and needs to focus on support industries, diversify overseas markets for its imports and exports; and adjust its import and export structure to avoid being dependent on the Chinese market.

To score high growth and fulfill the targets of 2014, Quan asked the city's Government agencies to focus on measures to put prices and inflation under control; to stimulate consumption; and to work with other localities across the country.

Quan asked agencies to increase revenue from taxation but to ensure good business and production for enterprises in the city.

He told agencies to enhance taxation from land resources, saying this is one of the major sources of revenue for the city's infrastructure development. — VNS