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Hochiminh City targets 8.7% growth in 2017 Print
Friday, 03 March 2017 14:39

VIETRADE - HCM City is striving to a Gross Regional Domestic Product (GRDP) of between 8.4% and 8.7% this year, reports.


Su Ngoc Anh, Director of the municipal Department of Planning and Investment said the city also set other targets, including establishing 50,000 new firms and having investment representing 35% of GRDP.    

The southern economic hub also plans to shift 25,000 family-run businesses into registered enterprises, speed up equitisation of State-owned companies, and improve co-operation with surrounding localities to expand the market.

It will offer incentives for enterprises to invest under public-private partnerships, especially in the city’s seven breakthrough programmes, including personnel development, administrative reform, growth quality and competitiveness improvement.


Additionally, the city will focus on attracting multinational corporations, encouraging the formation of big private companies besides developing small and medium-sized enterprises, and boosting the linkage between domestic and foreign-invested firms.


Top priority this year will also be given to solving hurdles facing enterprises besides setting up a comprehensive information system to help businesses, to invest in the support industry.


In 2016, the city’s GRDP expanded 8.05% to reach VND1,023.92 trillion and non-oil export value totaled US$29.2 billion, up 10% from last year, according to the municipal People’s Committee’s report.


During the period, its consumer price index (CPI) rose 1.76%, below the national CPI surge of 2.47%, contributing to stability in the macro-economy and curbing inflation while the industrial production index went up 7.33% year on year.


The city collected VND307.3 trillion (US$13.8 billion) for the budget, exceeding target set earlier and surging 10% compared to the same period last year.


Of the total, domestic collection contributed VND186.34 trillion (roughly US$8.2 billion), equivalent to 104.92% of the estimate and up 19.08% against 2015. Specifically, revenue from the economic sector was VND125.055 trillion (US$5.5 billion), equal to 103.76% of the estimate and up 18.98%, while revenue from other sectors hit VND61.28 trillion (US$2.7 billion), meeting 107.37% of the estimate and up 19.29% year on year.


Up to 36,000 new enterprises were established in the city in 2016, with 39.8% in real estate and 18.7% in trade and retail. The latest addition has brought its number of established firms total up to 290,000 as of last year.


FDI attraction

The city absorbed US$3.7 billion in new foreign direct investment (FDI) last year, including expansion and acquisitions, according to the committee’s data.


Specifically, US$1.3 billion was poured into 713 newly-licensed projects, and 174 existing foreign-invested firms raised their capital by a combined US$465.6 million.


Besides, the city gave permission to 1,900 foreign investors to acquire stakes in local firms worth approximately US$1.9 billion.


Regarding newly-licensed projects only, the real estate sector attracted a big portion of capital with US$326.8 million, followed by wholesale and retail, automobile with US$245.8 million.


During the year, Taiwan was the city’s leading source of FDI with US$259.7 million. Japan came next with US$123.4 million and Singapore ranked third with US$108.5 million.


Meanwhile, the city’s FDI disbursement last year was around US$2.07 billion, equivalent to the amount recorded in the same period last year. 


The committee said the municipal agencies are working to process submitted foreign-invested projects as fast as possible. Some remarkable pending projects are a US$300 million plan by Japan’s Nipro Pharma, and a US$220 million investment made by Cayman Islands in the Sai Gon-Ba Son office-hotel-trade complex. 


As of last year, HCM City was home to 6,485 valid foreign-invested projects capitalized at US$40.99 billion./.

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