HCMC’S GRDP GROWTH HITS FIVE-YEAR HIGH IN Q1

Visitors gather in front of the City Hall - PHOTO: DAT THANH

HCMC – HCMC’s gross regional domestic product (GRDP) in the first quarter of this year expanded by over 7.51% year-on-year to more than VND457.6 trillion, the highest Q1 growth rate since 2020.

The data was released by the HCMC People’s Committee at a meeting held today, April 2, to review the socio-economic performance in January-March.

Nguyen Thi Huynh Mai, director of the city’s Department of Planning and Investment, said that most businesses operating in key industrial sectors had secured orders through mid-2025. Industrial production expanded by 5.9% compared to the same period last year, the highest growth rate in five years.

“This indicates a sustained recovery and steady development of the city’s industrial sector,” she noted.

The trade and service sector also achieved remarkable results. Retail sales of goods and services in Q1 amounted to nearly VND317 trillion, up by 14.2% year-on-year.

Tourism continued to thrive, with total revenue reaching VND56.66 trillion in the quarter, a 26.7% increase versus the first three months of last year. The service sector as a whole expanded by around 8.72%, the strongest growth in seven years.

Foreign trade showed positive signs. The city’s export value through nationwide customs checkpoints reached US$11.7 billion in Q1, up by nearly 5.1% year-on-year.

Despite these achievements, the city’s government acknowledged several lingering challenges. The number of newly established businesses and registered capital fell compared to the same period in 2024, while business closures rose by 13.3%. Public investment disbursement remained sluggish, fulfilling only 5.4% of the year’s target.

Looking ahead, HCMC will continue to drastically and effectively implement resolutions and conclusions of the central Government, the HCMC Party Committee, and the municipal People’s Council on the 2025 socio-economic development plan, said Nguyen Van Duoc, chairman of the HCMC People’s Committee.

Duoc emphasized mobilizing resources for development, especially from the private sector, which is viewed as a key driver for growth, labor productivity, and the city’s overall competitiveness. In particular, the city aims to mobilize over VND620 trillion in total social investment in 2025 through a dedicated infrastructure development plan.

In addition, the city will expedite public investment procedures and disbursement to meet this year’s targets.

To lay the groundwork for long-term growth, the chairman assigned the Department of Finance to draft a master plan outlining strategic solutions to spur “double-digit” economic growth in HCMC during the 2026-2030 period.

Source: The Saigon Times