Ho Chi Minh City's economy records many positive signs

HCM City encourages businesses to automate production to adapt to the new situation. Photo: X.H

Production index increased by more than 13%

HCM City has controlled the pandemic and opened production and business activities. Workers have returned to the city and businesses have actively taken 5K measures to gradually restore production. Many positive signals of the economic locomotive have been clearly shown.

Accordingly, the industrial production index in November 2021 was estimated to increase by 13.3% compared to the previous month. In which, the processing and manufacturing industry increased by 13.6%; and electricity production and distribution increased by 18.7%.

Some industries increased sharply compared to the previous month, such as: beverage production increased by 51.6%; production of leather and related products increased by 40.8%; print, copy, record of all kinds increased by 30.1%; and textile increased by 25.5%.

Analysis of the People's Committee of HCM City showed that the industrial production index in November was better than in October because the city has controlled the pandemic, and gradually overcame the labor shortage.

In the second half of November, the pandemic was complicated. The city has drastically implemented measures, especially the second vaccination for workers in industrial parks, export processing zones, and children from 12 to 17 years old, to prevent and control it.

In particular, effectively implemented welfare and support policies for businesses and workers, such as preferential loans for small and medium-sized enterprises, exemption and reduction of personal income tax, corporate income tax, and reduction of loan interest rates.

Although the number of employees working at enterprises in November increased by 13.9% compared to October, this number still decreased sharply, up to 9.9% compared to the same period last year.

Generally in 11 months, the decrease in the number of employees by 20.5% over the same period has significantly affected the production and export activities of units. Most industries had a decrease in labor index over the same period such as: beverage industry decreased by 43.6%; production of leather and related products decreased by 30.2%; wood processing and products from wood, bamboo (except for beds, cabinets, tables, and chairs) down 30.1%; motor vehicle manufacturing industry decreased by 28.7%; and production of chemicals and chemical products decreased by 24.0%.

Generally, in the first 11 months of 2021, the industrial production index in the city decreased by 15.5% over the same period last year. Since the pandemic impact has been large, most industries have decreased over the same period such as: other mining down 33.2%; beverage production decreased by 29.1%; production of costumes decreased by 28.5%; textile down 24.4%; and repair, maintenance and installation of machinery and equipment decreased by 24.3%.

Four key tasks in the last month of the year

The consumer price index in November 2021 decreased by 0.17% compared to the previous month, increased 1.83% over the same period last year, and an average increase of 2.46% in 11 months over the same period.

Although food prices have tended to decrease compared to October, they are still at a high level compared to before the pandemic, so some eateries have increased their prices.

The economy of HCM City in the last two months of the year takes place when the momentum of global economic growth and global trade is threatened by the fourth wave of the pandemic; supply chains and production links are disrupted by traffic congestion and labor shortages; and the price of energy and raw materials increase, putting great pressure on inflation.

Facing these difficulties, to fulfill two tasks simultaneously, including to defeat the pandemic, protect people's health, and stabilize society, support businesses to overcome difficulties, in the last month, HCM City focuses on quickly solving four main issues.

First, continue to strictly implement pandemic prevention and control measures; improve testing capacity at airports and port border gates along with the capacity to treat Covid-19 patients.

Second, mobilize the strength of the entire political system, implement policies to reduce and relax taxes; policies on social insurance, unemployment insurance, and health insurance to maintain business operations to create jobs and income for employees.

Third, focus on handling bottlenecks on land; resolving legal conflicts over procedures for land allocation, determination of compensation unit prices, payment and settlement procedures for capital construction to speed up the disbursement of public investment capital. Priority should be given to removing difficulties for delayed projects, especially key, large-scale, pervasive projects, improving the production capacity for the economy.

Fourth, promote the application of IT and communication in all administrative activities of State agencies, especially those performing public administrative services - consider this an urgent task in building e-government to serve the people; accelerate the digitization of data in all agencies, especially residential and business data.