Foreign tourists are photographed in front of the iconic Independence Palace in HCM City that aims for growth targets of 7-7.5 per cent for this year and 8-8.5 per cent next year. — VNS Photo Bồ Xuân Hiệp

Despite multiple challenges facing it, HCM City has set ambitious growth targets of 7-7.5 per cent this year and 8-8.5 per cent next year.

Phan Văn Mãi, chairman of the municipal People's Committee, has issued a directive outlining the tasks for the city to achieve growth targets through 2025.

The directive aims to place the city among Việt Nam’s top ten localities regarding the Provincial Competitiveness Index (PCI) and Public Administration Reform Index (PAR-Index) by 2025.

It also aims to achieve a total housing area of at least 40 million square metres and to build at least 26,200 social housing units by 2025 as requested by the government.

It aims to achieve an 80 per cent or higher rate of household waste treated using advanced technologies or recycled methods.

It plans to develop at least 150 hectares of green parkland by 2025.

The city has set a target of achieving its digital economy making up 25 per cent of its Gross Regional Domestic Product (GRDP) by 2025 and 40 per cent by 2030.

Key initiatives

The city has outlined essential tasks for relevant agencies, including the Department of Planning and Investment and the Department of Transport.

The tasks include stimulating public spending, encouraging consumer activity, stabilising market prices, enhancing the business climate, and promoting environmental protection and regional cooperation.

It wants to disburse VNĐ73 trillion, or 95 per cent of its public investment allocation by the end of 2024.

The Department of Planning and Investment is tasked with mobilising VNĐ422 trillion (US$16.73 billion) in investment by 2025, up 14 per cent year-on-year.

Total investment capital reached VNĐ148.3 trillion in the first half, up 2.6 per cent year-on-year.

The city seeks to transform into a smart city through a comprehensive digital transformation plan that includes a data governance strategy and the development of artificial intelligence by 2030.

According to the recently published “HCM City Macroeconomic Report: Recovery and Challenges,” the city’s economy is likely to achieve growth of 7-7.5 per cent in 2024.

Its economy is forecast to continue to grow throughout this year and next, according to the report.

Reaching a growth target of 7-7.5 per cent this year and 8-8.5 per cent next year is possible if the global economy continues to recover favourably, it said.

Based on data from the first half, the report indicated a stable economic recovery in the country’s largest city.

Demand recovery has been seen in various indicators related to consumption, investment, and exports.

Despite various challenges facing it, the city recorded a growth rate of 6.46 per cent in the period, according to the report.

The city received over 3 million foreign visitors and 20 million domestic tourists in the first seven months, up 30.3 per cent year-on-year and 7.6 per cent year-on-year.

Its tourism revenue reached over VNĐ108 trillion in the first seven months, up 15.4 per cent year-on-year.

Experts have urged the city to continue to address bureaucratic inefficiencies, land clearance issues, and project delays in order to meet growth targets. — VNS