Ho Chi Minh City needs growth surge to hit 2026 double-digit target

The city's gross regional domestic product (GRDP) grew 9.06 percent in the first nine months of the year, its strongest performance in more than a decade. But growth must accelerate sharply in the final three months to meet the annual target.

Speaking at a meeting on Thursday to review socio-economic performance in the first nine months and set tasks for the rest of the year, Nguyen Van Duoc, chairman of the People's Committee, outlined four priorities for the final quarter.

They include increasing budget revenue, speeding up public investment disbursement, removing obstacles facing projects and urging businesses with major projects to accelerate implementation.

Revenue collection must accelerate

Ho Chi Minh City aims to collect VND1 quadrillion (US$38.5 billion) in State budget revenue this year.

Collections reached VND676.9 trillion in the first nine months, equal to 84.2 percent of the estimate assigned by the central Government but about 67 percent of the city's full-year target, according to figures presented at the meeting.

The city will need to collect more revenue in the final quarter to meet its target.

Authorities are also seeking to mobilize resources for infrastructure and other economic activities.

The city accounts for 23.4 percent of Vietnam's gross domestic product and about 30 percent of national budget revenue, making its performance important to the wider economy.

Public investment needs to speed up

Public investment disbursement reached about VND111.5 trillion after nine months, or 75.5 percent of the annual plan, according to figures presented at the meeting.

Authorities want to speed up spending in the final quarter to meet the annual disbursement target. Faster implementation could support construction, infrastructure development and demand across the economy.

Foreign investment has also been strong. Ho Chi Minh City attracted US$17.8 billion in foreign investment in the first nine months, accounting for about 30 percent of the national total, Duoc said.

However, investment commitments alone do not guarantee growth. Funds must be disbursed and projects completed for them to generate construction activity, production and jobs.

Clearing stalled projects

The city has identified nearly 1,340 projects, construction works and land sites facing obstacles that need to be addressed.

As of the end of September, authorities had resolved problems affecting 669 of them, or half the total, according to figures reported at the meeting. Work is continuing on the remaining projects.

Legal and administrative problems, including issues involving land and project procedures, can delay construction and prevent investment from contributing to economic growth. Resolving these problems could allow more projects to move forward. Their contribution to growth, however, will depend on how quickly work can resume and operations begin.

Major businesses urged to ramp up production

The city is also urging businesses with major projects to speed up implementation and fulfill their investment commitments.

Authorities have pledged to work with investors to resolve difficulties and help projects proceed. The aim is to turn planned investment into actual economic activity in the final quarter.

Despite stronger growth in the first nine months, businesses will need to expand production and deliver projects on schedule to help the city meet its annual target.