In an address to a recent conference to review Ho Chi Minh City’s 2023 socio-economic performance and implement its 2024 plan, municipal People’s Committee Chairman Phan Van Mai noted that the southern city will work to reach public investment capital disbursement in the first quarter equal to 12-15 per cent of the 2024 allocation of nearly VND80 trillion ($3.3 billion).

The city was allocated public investment capital of more than VND68 trillion ($2.77 billion) last year, or 10 per cent of the country’s total. Disbursed capital reached just VND45.87 billion as of January 12, accounting for 67 per cent of the total.

The low disbursement rate was attributed primarily to site clearance issues.

According to a report presented at the conference by Director of the Ho Chi Minh City Department of Planning and Investment Le Thien Huynh Mai, the city’s GRDP in 2023 stood at more than VND1.6 quadrillion (nearly $65 billion), an increase of 5.81 per cent against 2022; the highest rate in the southern region and second among five centrally-run cities nationwide.

It has set a goal of GRDP growth of 7.5-8 per cent this year, up 1.2-1.3-fold against 2023.

To achieve its goals, according to Ms. Mai, disbursement must reach at least at 95 per cent of the 2024 allocation.

The city took the lead in attracting FDI nationwide last year, with total registered capital of $5.85 billion, a year-on-year increase of nearly 50 per cent and accounting for 16 per cent of the country’s total of $36.6 billion.

More than 53,160 new enterprises were established in the city in 2023, a year-on-year increase of 16.7 per cent and accounting for 33.4 per cent of the country’s total, bringing its total number of newly-established enterprises and enterprises resuming operations to more than 66,230.

It was the first time the number of newly-established enterprises in the city exceeded 50,000.