[jackbl]

Ho Chi Minh City, the country's economic "locomotive"
==============================================

Nhan Dan - With a population of over eight million people and more than 100,000 enterprises of different economic sectors, accounting for over 30% of the country's total enterprises, and some 3,000 representative offices for foreign companies from 60 countries and territories, Ho Chi Minh City has become an economic "locomotive" of the whole country on the way of development and world economic integration. Bang Chau writes.


In 2008, Vietnam's economy in general and Ho Chi Minh City's economy in particular was affected by the world financial crisis. The city's consumer price index in the first half of the year was the highest in the country. In the second half of the year, the purchasing power reduced. Many enterprises had to adjust their investment and business plans. Prices of almost all stocks listed at the Ho Chi Minh Stock Exchange dropped sharply. The VN-Index hit the lowest record in three years.

Despite difficulties, the city continued to maintain economic growth. Seven out of the total 20 fundamental targets set for 2008 were exceeded. State budget collection target was fulfilled two months ahead of schedule. Total export turnover hit over US$24.8 billion, up 24.3% compared to 2007. Total mobilised investment capital for social development hit VND 114.5 trillion, accounting for 39.6% of GDP and up 20.4% against 2007.


According to Nguyen Hoang Quan, Chairman of Ho Chi Minh City People's Committee, the above-said results were attributed to the positive impacts through the admission into the World Trade Organisation and vigorous foreign investment flow, thus accelerating the strong development of such sectors as services, tourism, post and telecommunications, information technology and transport.

In addition, the city's authorities had also promoted the progarmme to practise thrift and fight against wastefulness.

Ho Chi Minh City targets to become a modern, civilised city of deep national identity and sustainable development in 2025. Priotised programmes have been worked out to achieve the objectives including building economic establishments, upgrading the urban infrastructural system, buiding new urban areas and protecting the environment. Especially, the city will spend US$6.7 billion to build over 700,000 apartments for the local people.

2009 has been predicted to be a difficult year for Ho Chi Minh City due to the global economic recession.

However, Ho Chi Minh City targets to pool efforts to achieve a two-digit economic growth and curb price hike.


Priority will be given to strengthening the development of four major industries: engineering, electronics and information technology, chemicals and food and foodstuff processing industries which have high added value.

In addition, the city also aims to pour investment to develop infrastructural facilities to link with localities in the southern key economic region, the Mekong delta and the Central Highlands, striving to become the centre for the whole region and promote international economic integration.

The people in Ho Chi Minh City are making their efforts to seize opportunities, overcome difficulties to maintain its position as the economic "locomotive" of the country.