The Ho Chi Minh City Statistics Bureau has just released a report on the city’s socio-economic situation in May and the first five months of 2023. Accordingly, in the general context, the economy of the city is such that macroeconomics are gradually stabilizing. determine when monetary policy is significantly improved; Banks lower interest rates and commit to funding some projects.

INDUSTRIAL GROWTH MORE

Industrial production in May 2023 was better than in the previous month. However, companies still face many difficulties due to lack of production orders, lack of jobs and pressure to pay interest on bank loans.

The industrial production index (IIP) is estimated to have increased by 1.5% in May 2023 compared to the previous month and by 5.5% compared to the same period in 2022. During this period, mining rose 2.0% month-on-month over the same period fell 4.6%; Manufacturing and manufacturing increased 1.6% mom and 5.6% over the same period. Electricity generation and distribution increased by 0.2% month-on-month and by 5.6% over the same period. Water supply and waste treatment decreased by 1.8% month-on-month but increased by 2.6% over the same period.

Cumulatively for the first five months of 2023, the city’s IIP increased by 1.6% over the same period. Of which: mining industry down 0.5%; manufacturing and processing industry rose 1.5%; Electricity production and distribution increased by 3.4%; Water supply and waste treatment increased by 5.2%.

The Ho Chi Minh City Bureau of Statistics report also said that out of 30 secondary industries, 17 recorded an increase in IIP in May, and a number of industries recorded an increase. Specifically: Motor vehicle production rose by 26.2%; The production of other means of transport increased by 24.6%; production of coke and refined petroleum products by 24.4%; Other manufacturing and processing industries increased by 18.7%. On the contrary, there were also a number of industries with sharp declines in IIP, such as: manufacture of beds, wardrobes, tables and chairs with a 17.7% decline; production of costumes fell by 15.7%; production of other non-metallic mineral products fell by 14.9%; Beverage production fell by 11.2%.

For four key industries, IIP increased by 3.8% in the first five months of 2023 over the same period; The chemical and pharmaceutical industry increased by 12.7%, mechanical engineering by 3.9%, the production of electronic products by 4.3% and the food and beverage industry by 4.7%.

Traditional industries largely declined. Specifically: the textile industry fell by 0.2%; the leather and related products industry declined 6.4%; Garment production fell by 15.7%.

A bright spot in May 2023 is that the consumption index of manufacturing and manufacturing is expected to increase by 1.6% month-on-month, which will bode well for the industrial recovery in Ho Chi Minh City. However, the consumption index for the entire industry fell by 4.9% in the first 5 months of 2023 over the same period. Furthermore, the inventory index of manufacturing and manufacturing industries was estimated to have increased by 4% month-on-month in May 2023 and by 11.6% over the same period. Compared to the same period, 17 industries in Tier II industries recorded an increase in inventory index and 6 industries recorded a decrease in inventory index.

TRADE, SERVICES GROW SLOWLY

According to a report by the city statistics bureau, many discount and promotional programs have been implemented recently to boost people’s consumption during the April 30 and May 1 holidays and summer tourism at the end of the school year. However, the growth rate of trade and service activities is still slow.

The number of international visitors to Ho Chi Minh City is not large. Dining and entertainment hasn’t recovered as much as it did before the pandemic. Some real estate projects were halted by the courts, which helped warm the market; but overall it has still declined over the same period.

It is estimated that total retail sales of consumer goods and services increased by 3.1% in May 2023 compared to the previous month and by 10.1% compared to the same period last year. Cumulatively for the first 5 months of 2023, it increased by 6.2% over the same period, increasing by 1 percentage point compared to the 4-month increase. Food and food groups had the highest share of 19.6% and increased by 0.1%; followed by household appliances, tools and equipment with a 13.3% share and a 6.5% increase…

In general, retail sales of goods were estimated at VND277,627 billion in the first five months of 2023, up 9.4% over the same period. The highest growth was in the automobile group with an increase of 25.3%; followed by food and food up 24.7%, oil and clothing up 8% and 6.1% respectively.

Accommodation and catering services were valued at VND9.381 billion in May 2023, accounting for 9.5% of the total retail sales of goods and services, increasing by 7.9% compared to the previous month. The accumulation of the first five months of 2023 increased by 34.8% over the same period; The catering service increased by 33.7% and the accommodation service by 46%.

The highest increase is in travel performance. Specifically, it was valued at VND846 billion in May, up 12.2% month-on-month and 71.8% over the same period; In general, travel services increased by 78.7% in the first 5 months of 2023. However, since the turnover of this sector only accounts for about 1%, the impact of this increase on the overall level is insignificant.

Public investment capital disclaimer is not high

In May 2023, investment capital for capital construction and major repairs from the municipality-administered state budget was estimated at VND2,419.5 billion, up 4.3% from April and growing by 9.5% over the same period.

In general, the investment capital for construction and repair is estimated at VND10,160.5 billion in the first five months of 2023, up 24.2% over the same period. Split, the municipal budget capital generated VND9,989.2 billion, up 23.3%; The district budget capital is estimated at VND171.3 billion, which is 2.1 times higher than the same period.

According to the report, the total disbursed investment capital by the end of April 2023 was 2.475 billion, which reached 6% of the 2023 capital plan allocated by the city people’s committee for the implementation of Phase I and 3.5% of the capital plan allocated by the city people’s government. The total disbursed capital is expected to be implemented by the end of May 2023 and is VND9,086.0 billion, which is 21.9% of the 2023 capital plan allocated by the city people’s committee and 12.8% compared to the capital plan allocated by the city people’s committee by the government.

Also in May 2023, especially in the first half of May, the city’s public investment capital disbursement skyrocketed due to compensation and land clearance costs for the Ring Road Project 3 in Ho Chi Minh City. The Board of Ho Chi Minh City Transportation Construction Investment Project (TCIP) has transferred more than VND 5,624 billion in compensation funds to the communities for the first phase to pay organizations and individuals under the project. for the release of the Ring Road 3 project. As of May 14, municipalities have paid more than VND1,749 billion for 401 cases with a total handover area of ​​more than 189,701 hectares (46.22%). It is expected that 70% of the site will be handed over in June 2023 in order to meet the schedule for the start of 4 construction and installation packages.