A view of HCM City at night. The city’s economic growth is expected to slow down in 2023. — VNA/VNS Photo

A top HCM City official has warned about the challenges the city faces next year, and lowered its growth target for next year to 7.5-8 per cent.

Nguyen Van Nen, secretary of the municipal Party's Committee, speaking at a meeting on Wednesday, said the city would face headwinds from the global slowdown next year.

Global growth is forecast to slow from 6 per cent last year to 3.2 per cent this year and 2.7 per cent next year, he pointed out.

The city would focus on stabilising its economy, controlling inflation and speeding up public spending which remains slow, causing major public projects to be delayed for years, he added.

As of November 25, public spending was 34 per cent of the full-year target and is expected to increase to 77 per cent by the end of 2022.

The city would also make efforts to supply the economy with capital amid tightening monetary policy, develop high-quality human resources and promote digital transformation to achieve digital governance, a digital economy and smart city.

Experts said disrupted supply chains and rising logistics costs have slowed exports.

They suggested that the city continue to implement measures to speed up economic recovery and support businesses with policies such as tax breaks and low lending interest rates.

The city’s retail sales of goods and services were estimated at VND899 trillion(US$36.2 billion) in the first ten months of this year, up 29.9 year-on-year, according to its Department of Planning and Investment.

Foreign trade totalled $40.8 billion, a 13.4 per cent increase.

It attracted $3.42 billion worth of FDI, up 25.3 per cent. — VNS