FDI into HCMC falls 34% in 9 months

Foreign direct investment into Ho Chi Minh City plunged 34.1% year-on-year in the first nine months of 2023.

However, the southern economic hub still ranked third among localities nationwide in FDI attraction, only after Hanoi and Hai Phong, said deputy director of the municipal Department of Planning and Investment Pham Trung Kien on Thursday.

At a meeting reviewing the city's socio-economic performance, Kien added that despite many difficulties and challenges, the city recorded certain improvements in socio-economic development, with increasing gross regional domestic product (GRDP), index of industrial production (IIP), and tourism revenue.

The GRDP in the third quarter increased an estimated 5.8-6.2% compared to 5.8% growth in the previous quarter, resulting in the nine-month year-on-year increase of about 4-4.5%, he said.

The IIP expanded 3.2% over the same period last year, with four key industries rising 5.8%. Total retail sales of goods and consumer service revenue surged 8.6% year-on-year.

Total tourism revenue was estimated at nearly VND125.5 trillion ($5.13 billion), up 35.8%. The city hosted nearly 20 million domestic visitors and 3.6 million foreign tourists in the nine-month period, up 24.9% and 69% year-on-year, respectively.

Total state budget revenue was estimated at VND326.2 trillion ($13.37 billion), reaching 69.45% of the year's estimate and equal to 93.65% of the figure in the same period last year.

However, the economic picture of HCMC also featured grey spots. In addition to declining orders and increasing inventory, its export and import turnover fell 14.2% and 17.25% year-on-year, respectively.

The number of newly established businesses increased 13.1% in number (37,224 enterprises), but decreased 9% in registered capital.

Although the disbursement of public investment capital was higher than the same period last year in absolute value, the disbursement speed remained low and failed to meet expectations, he added.

Kien blamed those poorly-performing indicators to the difficult world economic situation, the unfavorable international environment, and slow improvements in some markets.

Registered foreign direct investment capital in Vietnam rose 7.7% year-on-year to $20.21 billion in the year to September 20, while disbursed capital hit $15.9 billion, up 2.2%.

Out of the total, $10.23 billion was registered capital for 2,254 new projects, up 43.6% and 66.3% year-on-year, respectively. Over $5.15 billion was added to 934 ongoing projects, down 37.3% but up 21.5%, respectively.

About $4.82 billion was capital contributions for 2,539 stake acquisition deals, up 47% but down 5.9%, respectively.