10 percent growth set for HCM City

In the first half year-on-year growth was a mere 4.6%, the lowest in the last 10 years, due to the impact of the global economic downturn. Economic output totalled VND135.06 trillion (US$7.9 billion).

Councilors passed resolutions to speed up major projects that have direct influence on the welfare of the people. Nguyen Thanh Tai, deputy head of the People’s Committee, said the administration is doing its best to maximise growth this year, and said it would not be very difficult for the city to achieve the target.

Investment, especially in social housing and infrastructure, would be the key factor in maintaining growth, he said. The city has already promised financial priority for land clearance for delayed construction projects.

The Department of Planning and Investment has speeded up the licensing process and improved the investment environment, he said. While enterprises had to wait a month for the licence until recently, it only takes a week now and the time would be further reduced, Tai promised. "As many as 19,000 new firms were set up in the first six months," he said. "If the investment process is streamlined further, it will help boost the city economy in the remaining months of the year," he said. Besides economic growth, business competitiveness too has seen a slump, leaving many workers struggling, lawmakers said, adding the city should focus on social welfare.

Le Hoang Quan, chairman of the municipal People’s Committee, said despite the city’s best efforts, economic growth was lower than targeted. He pledged the city would achieve growth of at least 10 per cent during the rest of this year.