Ho Chi Minh City’s economy shows positive growth following the merger

(Chinhphu.vn) – After more than a month of implementing the expanded administrative boundary merger and the two-tier local government model, Ho Chi Minh City’s economy has maintained a positive growth trajectory. As of the end of July, the city had attracted nearly USD 6.2 billion in foreign direct investment (FDI), an increase of almost 46% compared to the same period last year.

On the morning of August 9, Nguyen Van Duoc, Member of the Party Central Committee, Deputy Secretary of the City Party Committee, and Chairman of the Ho Chi Minh City People’s Committee, chaired the meeting on the city’s socio-economic situation for July and the key tasks and solutions for August 2025.

Several sectors and fields continue to maintain positive growth momentum

Reporting on the socio-economic situation for July and the first seven months of 2025, Director of the Department of Finance Nguyen Cong Vinh stated that the Ho Chi Minh City People’s Committee has focused on restructuring and streamlining the administrative apparatus, while promptly implementing the two-tier local government model, ensuring progress and quality as required.The city has also carried out key “pillar” resolutions on science and technology, international integration, legal development, private-sector growth, and measures to boost economic expansion in accordance with Conclusion No. 123 of the Party Central Committee.The Ho Chi Minh City People’s Committee has concentrated its directives, creating noticeable improvements and achieving several positive results, thereby driving continued growth across various sectors and fields.

Specifically, total state budget revenue for the first seven months reached VND 472,588 billion, equivalent to 70.4% of the target assigned by the central government. As of the end of July, the city had disbursed VND 47,577 billion, reaching 40% of the capital plan allocated by the Prime Minister.

Total retail sales of goods and consumer service revenue in July were estimated at VND 159,950 billion, an increase of 14.7% compared with the same period last year.For the first seven months, total retail sales of goods and consumer service revenue were estimated at over VND 1 quadrillion, up 15.5% compared with the same period in 2024.

The Industrial Production Index (IIP) in July is estimated to have increased by 3.7% compared with the previous month and by 9.8% compared with July 2024.Cumulatively for the first seven months of 2025, the IIP of the entire industrial sector is estimated to have grown by 5.9% year-on-year.Among these, the production index of the four key industrial sectors is estimated to have increased by 11.1%, while the three traditional industrial sectors are estimated to have grown by 11.2%.

According to the Director of the Department of Finance, the solid growth in July reflects the recovery and positive development of the city's industrial sector amid global economic fluctuations. The significant growth recorded in both key and traditional industries demonstrates the effectiveness of the city’s support policies and industrial development strategies.

FDI attraction rises sharply, with many projects being resolved

In terms of foreign direct investment (FDI) attraction, as of the end of July, including both newly registered investment capital and capital contributed through share purchases, equity acquisitions, and mergers with domestic enterprises, the city had attracted nearly USD 6.2 billion — a 45.6% increase compared with the same period in 2024.

In the first seven months, 31,052 new enterprises were established with newly registered capital totaling VND 162,942 billion; additionally, VND 403,110 billion was registered as supplementary capital. In total, newly registered and additional capital in the first seven months of 2025 amounted to VND 566,052 billion, an increase of 9% compared with the same period last year.

The city’s export turnover in July is estimated at USD 7.7 billion, bringing the total for the first seven months of 2025 to an estimated USD 52.92 billion, an increase of 7.15% compared with the same period last year.

To date, Ho Chi Minh City’s Special Task Force has resolved obstacles for 86 projects with a total value of more than VND 420,000 billion, covering an area of approximately 1,200 hectares.

Strengthening solutions to ensure growth targets are achieved

The Ho Chi Minh City People’s Committee has set out several key tasks and solutions for August. Specifically, the city will continue to decisively, comprehensively, and effectively implement growth targets across sectors, fields, and localities, along with priority tasks and solutions to help ensure that national economic growth reaches approximately 8.5% in 2025.

The city will continue implementing the plan to reorganize and restructure administrative units at all levels and to build the two-tier local government model. It will prioritize measures to boost growth; proactively and flexibly respond with timely and effective policy actions to emerging issues; remain steadfast in achieving the GRDP growth target for 2025; and effectively implement the Party Central Committee’s Conclusion No. 123-KL/TW.

At the same time, the city will focus on removing obstacles for ongoing projects and accelerating the implementation of key projects; speeding up the disbursement of public investment capital; and promoting infrastructure development, with public investment serving as the driving force to activate and effectively mobilize social resources.It will also intensify efforts in planning development, infrastructure construction, transportation development, reducing congestion and traffic accidents, expanding social housing, and resolving housing issues along canals and waterways.

The city is focusing on developing science and technology, fostering innovation, promoting emerging industries and sectors, and accelerating comprehensive digital transformation.

The city will effectively and promptly implement social welfare policies, improve the quality of healthcare services for the public, and place strong emphasis on education and training. It will continue to strengthen communication and public outreach efforts—especially policy communication—to inspire, motivate, build trust and social consensus, and create new momentum for development.

Mobilizing all resources to ensure year-end growth targets

Chairman of the Ho Chi Minh City People’s Committee Nguyen Van Duoc assessed that the city’s socio-economic performance in the first seven months of the year achieved many notable results, with strong highlights in foreign investment attraction, stable domestic investment inflows, and public investment disbursement efforts that have been highly appreciated by the Government.

The Chairman of the Ho Chi Minh City People’s Committee emphasized that the tasks from now until the end of the year are extremely demanding. Key priorities include successfully organizing the Party Congresses at all levels; striving for a growth rate of 10% or higher in the remaining months of the year to achieve the 8.5% growth target assigned by the Government; and implementing the Vietnam International Financial Center in Ho Chi Minh City.

To achieve the overall growth rate of 8.5% in 2025, the Chairman of the Ho Chi Minh City People’s Committee outlined several key priorities that the city needs to focus on in the coming period.

The Chairman of the Ho Chi Minh City People’s Committee emphasized the need to mobilize all resources to achieve the designated growth targets. Priority should be given to accelerating growth-promoting measures, while proactively and flexibly responding with timely and effective policy actions to emerging issues.

In addition, the city must focus on accelerating public investment disbursement; resolving obstacles and bottlenecks in ongoing projects; promoting stronger and more substantive administrative reform to ease difficulties for production and business activities; ensuring social welfare; and safeguarding political security and social order and safety.

Le Anh