Ho Chi Minh City: Enterprises are on the momentum of production growth

Enterprise production is on the rise

Many signs of improvement

According to Ho Chi Minh City's assessment, business trends of processing and manufacturing enterprises show that production and business activities in the third quarter of 2023 compared to the second quarter of 2023 have shown signs of improvement.

Specifically, 31.8% of businesses rated their production and business situation as better; 35.4% remained stable and 32.8% had more difficulty. Among them, the state-owned enterprise sector has the most optimistic assessment with 89.7% of businesses saying it will improve and remain stable; this rate in the foreign and non-state invested enterprise sector is 65.3% and 65.2% respectively.

Specifically, the industrial production index in September 2023 is estimated to increase by 2.9% over the previous month and by 8.1% over the same period. Some major industrial products in the first 9 months of 2023 increased compared to the same period, such as: plastic packaging increased by 31.8%; Mineral or chemical fertilizers increase by 26.8%; milk or condensed cream with or without sugar increased by 15.6%; television increased by 11.9%.

The consumption index of the processing and manufacturing industry in September 2023 is estimated to increase by 1.6% over the previous month and by 9.5% over the same period, showing a positive signal about the recovery of HCMC industry.

In general, for the first 9 months of 2023, the entire industrial sector's consumption index increased by 0.1% over the same period. Among them, 9/23 level II industries have increased consumption index; Some industries saw high increases such as: production of rubber and plastic products increased by 68.7%; Wood processing and production of products from wood and bamboo increased by 65.5%; Production of paper and paper products increased by 27.9%; Chemical and chemical product production increased by 20.4%; Electrical equipment production increased by 19.9%...

Besides, according to Mr. Nguyen Khac Hoang, Director of the Ho Chi Minh City Statistics Department, the labor index working at processing and manufacturing industry enterprises in September 2023 increased by 0.5% compared to the previous month and down 3.5% over the same period. In the first 9 months of 2023, the labor index decreased by 2.3% over the same period. Among them, some industries have increased labor index such as: paper and paper product production increased by 31.4%; Motor vehicle production increased by 30.0%; Other processing and manufacturing industries increased by 25.1%.

Forecasting the situation in the fourth quarter of 2023 compared to the third quarter of 2023, 35.8% of businesses rated it better; 36.8% remained stable and 27.3% had more difficulty. Of these, 76.9% of state-owned enterprises have a positive view of the business situation in the fourth quarter of 2023, this rate in foreign and non-state invested areas is 73.3% and 70.3% respectively.

Maintaining the "leading" role

According to a report by the People's Committee of Ho Chi Minh City, business activities have impacted Ho Chi Minh City's budget revenue. The reduction in revenue has gradually narrowed, and many fields have increased revenue. Total state budget balance revenue in the first 9 months of 2023 is estimated at 326,193 billion VND, reaching 69.4% of the estimate and down 6.4% over the same period.

Of which, domestic revenue is estimated to be 214,163 billion VND, reaching 69.6% of the estimate, accounting for 65.6% of total balanced revenue and down 3% over the same period. However, budget revenues from the non-state sector and foreign-invested enterprises have prospered and grown.

Specifically, budget revenue from the non-state sector is estimated at 64,342 billion VND, reaching 73.9% of the estimate, accounting for 19.7% of total revenue and increasing by 10.3%; Revenue from the foreign-invested sector is estimated at 51,872 billion VND, reaching 73.9% of the estimate, accounting for 15.9% of total revenue and increasing by 0.2%; Revenue from import-export activities is estimated at 93,508 billion VND, reaching 64.1% of the estimate, accounting for 28.7% of total balance revenue and decreasing by 11.3%.

To promote positive results, resolve difficulties and problems and maintain its leading role, Ho Chi Minh City has proposed contents that need to be focused on solving well in the remaining 3 months of 2023.

Firstly, continue to accelerate the operation of mechanisms and policies that Resolution 98/2023/QH15 stipulates such as: Upgrade and expansion construction investment projects can apply BOT contracts; the collection of fees for temporary use of roadbeds and sidewalks; policies to support the production and consumption of agricultural products in the City; the operation of the Local Development Investment Fund.

Second, focus on resolving remaining difficulties in production and business for businesses, removing legal obstacles in projects, clearing the corporate bond market, speeding up tax refunds, and reducing value-added tax, administrative procedure reform to attract large-capital FDI projects associated with modern technology transfer...

Third, closely monitor developments in the financial and monetary markets, and the import and export situation to have timely and flexible policies. Expand access to loans for businesses and people, such as: 120,000 billion credit package for social housing loans; 20,000 billion credit package from financial companies.

Fourth, synchronously implement groups of solutions to stimulate domestic consumption, thereby contributing to promoting domestic production; Strengthen trade connections between localities and countries to seek new domestic and foreign markets. Strengthen control of price stabilization work, ensuring that artificial scarcity or local price increases in some products do not occur.

Fifth, continue to effectively deploy support packages of the Socio-Economic Recovery and Development Program. Accelerate the implementation of key projects and programs of the City such as: Project of Vietnam International Financial Center located in Ho Chi Minh City, Digital transformation program, Master project on training human resources at international level, Smart Health Project, Population Data Project...