According to Ho Chi Minh City Bureau of Statistics, by the end of the first quarter of 2023, Ho Chi Minh City’s gross domestic product (GRDP) reached VND 246,931 billion (at constant prices), an increase of only 0.7 % compared to the same period last year. , lower than the national average of 3.3% and ranked 56th out of 63 locations.

STRONG INDUSTRIAL GROWTH DOWN

In HCMC’s GRDP growth rate of 0.7%, services trade still contributes the most to growth at 1.33 percentage points (+2.07% growth), followed by product tax products at 0.15 percentage points (+1.14% year-on-year comparison). Agriculture, forestry and fisheries contributed 0.01 percentage point (+2.06% y/y). Industry and construction, on the other hand, fell by 0.79 percentage points (growth decreased by 3.6%).

Looking at the economic structure of Ho Chi Minh City in recent years, trade in services still has the largest share at 66.2%, followed by industry and construction with a share of 20.1%, product tax minus tax , Product subsidies at 13.1%%, agriculture, forestry and fisheries accounted for only 0.6%.

In the first 3 months of 2023, HCMC’s industrial sector slowed as the Industrial Production Index (IIP) declined 0.9% over the same period. The processing and manufacturing industries fell by 1.1%, although power generation and distribution increased by 1.4% and water supply and waste treatment by 5.3%.

In 04 major industrial sectors of the city, IIP still increased by 8.2% over the same period, including light industry (chemicals and pharmaceuticals increased by 22.9%; food and beverages increased by 18.5%), but heavy industry ( mechanical industry). mechanical engineering and electronic goods manufacturing) declined by 6.5% and 14.4%, respectively.

For 03 traditional light manufacturing industries, IIP also fell by 18.1%. Specifically: the textile industry fell by 2.8%; The leather and related products industry declined 19.4%; Garment production fell by 21.9%.

In terms of consumption, the group of manufacturing and manufacturing industries fell by 6.4% in the first quarter of 2023 over the same period. A sharp decline of 38-39%, mainly in heavy industry, including: other manufacturing and manufacturing products; prefabricated metal products; motor vehicles; a 30-32% drop in the production of metals and other non-metallic mineral products.

Some industries saw a sharp increase in consumption, such as B.: The production of rubber and plastic products increased by 62.3%; Beverage production increased by 50.3%; Production of electrical appliances increased by 30%; Printing, copying record types increased by 15%.

Similarly, inventories in the manufacturing of rubber and plastic products also fell by 32.6%; Production of electrical appliances down 32.7%; Production of leather and related products down 56.8%; Metals production fell 40.7%.

The drop in consumption caused manufacturing and manufacturing inventories to increase by 4% in both heavy and light industries over the same period as of March 2023. At the same time, inventories in the production of beds, wardrobes, tables and chairs increased by 75.4%; inventories also increased by 34-40% in the garment manufacturing sector; Cigarette; Chemistry; machinery and equipment not otherwise classified.

It can be seen that the growth slowdown in HCMC’s industrial sector is concentrated in heavy industry. Light industry (consumer goods manufacturing) and services continue to grow thanks to domestic demand. Therefore, the importance of heavy industry for economic growth is not small.

WILL HAVE GREAT SUPPORT

In order to restore and promote the city’s industry to develop worthy in the coming period, Ho Chi Minh City will have more “thick” support for this area.

This is one of the contents shared by Mr. Bui Ta Hoang Vu, director of the Ministry of Industry and Commerce of Ho Chi Minh City, at the quarterly press conference for the first quarter of 2023 in the city on the afternoon of April 3, 2023.

According to Mr. Vu, commodity consumption and retail trade “supported” Ho Chi Minh City’s growth in the first three months of 2023 with positive numbers, but trade and services still face many difficulties and challenges in terms of transportation, storage , labor costs … people’s income has not improved much. As for the production of the industry, the enterprises are still facing difficulties as there is a lack of orders and input cost pressures are increasing.

Explanation of the decline in growth in the light industry group, such as: wood products, fine arts; Clothing, textiles and electronics (heavy industry), Mr. Vu attributed the impact of the world market to the reduction in export orders from these companies.

In addition, industrial production accounts for 23% of HCMC’s gross domestic product and in the context of the more difficult situation of the real estate industry in the first months of 2023, the sharp decline in the construction industry has therefore affected the real estate industry in general.

“Ho Chi Minh City’s IIP reduction rate has slowed. In particular, when IIP fell by 15% in January, 2.5% in February, 0.5% in March and 0.9% in the whole of Q1/2023 compared to the whole country, this decline shows that the characters will recover. In particular, the provinces with the highest growth rate of the industrial production index are the provinces with a large number of foreign-funded enterprises…” stressed Mr. Vu.

In terms of industry development solutions, Ho Chi Minh City will support manufacturing companies in procurement of raw materials through cooperation between Ho Chi Minh City and the provinces, especially through the connection of banks and companies.

Facing general difficulties, Bangladesh’s textile industry is still developing due to the country’s early transition to green manufacturing, while Vietnam’s textile and garment industry is struggling. Therefore, it is necessary to immediately shake hands and link to promote green production and export.

First, to support production and stimulate consumer demand, the ministry will launch a targeted promotional program to turn Ho Chi Minh City into a shopping mall that will attract tourists and residents to higher-end goods as well.

In order to keep the bright spot of retail goods and create competition for domestic goods, the city will also develop from the root of increasing product quality and value. With the development of the light industry focus, the city also does not forget the important role of heavy industry and source technology, thus creating a promotion circle for sustainable production and consumption.