Ho Chi Minh City’s economy recorded positive signs

Ho Chi Minh City has controlled the epidemic and opened production and business activities under the motto “Safety first.” By the end of November 2021, the city’s economy has recorded positive signals. Notably, the total budget balance revenue in the first 11 months of 2021 is estimated to increase by 8.6% over the same period.

The Covid-19 pandemic has negatively impacted Ho Chi Minh City; however, compared to last October, the total budget balance revenue in November increased by 1.3% and 8.6% over the same period.

REVENUE INCREASE: A CONVENIENT SIGN

According to data from the Ho Chi Minh City Bureau of Statistics just announced, the city’s total budget balance in the first 11 months of 2021 is estimated to increase by 8.6% over the same period. Excluding the revenue from the financial reserve fund, the total budget revenue is estimated to increase by 6.2% over the same period.

This corresponding figure in October was 7.3% and 4.6%. This is a positive sign for the year-end budget collection problem. Accordingly, the total state budget balance in Ho Chi Minh City accumulated in the first 11 months of 2021 is estimated at 347,298 billion VND, reaching 95.2% of the estimate and increasing by 8.6% over the same period in 2020. As follows:

Domestic revenue was estimated at 228,843 billion VND, reaching 92.1% of the estimate, accounting for 65.9% of the total balanced revenue and increasing by 6.6% over the same period. In which:

• Revenue from state-owned enterprises was estimated at 24,161 billion VND, reaching 89.4% of the estimate, accounting for 7% of total revenue and increasing by 9% over the same period.
• Revenue from the non-state sector was estimated at VND 66,107 billion, reaching 97.6% of the estimate, accounting for 19% of total revenue and increasing by 13.5% over the same period.
• Revenue from the foreign-invested sector (FDI) was estimated at 58,276 billion dongs, reaching 97.6% of the estimate, accounting for 16.8% of total revenue and increasing by 6.1% over the same period.

Crude oil revenue was estimated at 12,934 billion VND, exceeding 51.3% of the year, accounting for 3.7% of the total balance and increasing by 27.9% over the same period. Revenue from import-export activities was estimated at 105,500 billion VND, reaching 97.7% of the estimate, accounting for 30.4% of the total balance and increasing by 11.1% over the same period.

The accumulated balance of local budget revenue in the first 11 months of 2021 is estimated at VND 84,462 billion, exceeding 2.8% of the estimate, accounting for 24.3% of the total state budget balance revenue and down 7.5% over the same period 2020.

According to Mr. Tran Phuoc Tuong, Deputy Director of the Ho Chi Minh City Statistics Office, the increase in budget revenue mainly comes from positive business results from businesses in the real estate, finance, and banking sectors. The impact from the policy of extending tax payment time under Decree 52/2021/ND-CP contributes to an increase in total budget revenue in the first six months of 2021.

As one of the three factors positively affecting the revenue of the city’s budget, up to now, the total mobilized capital of credit institutions in Ho Chi Minh City still maintains a reasonable growth rate in the context of the economy being severely impacted by the Covid-19 pandemic.

Total mobilized capital as of November 1, 2021, reached VND 3,027.4 trillion, up 0.4% over the previous month and up 10.4% over the same period in 2020. Of which, mobilized capital in VND reached 2,685 trillion dongs, accounting for 88.7% of total mobilized capital, up 0.7% month on month and 12.4% over the same period last year. Mobilized capital in foreign currency reached 342.4 trillion dongs, accounting for 11.3% of total mobilized capital, down 1.4% month-on-month and 3.4% over the same period.

Currently, the banking industry continues to implement credit programs, ensure an adequate supply of investment capital for the economy, and support businesses by the Government and the Central Bank policy in the context of the economic impact affected by the Covid-19 pandemic. The total credit balance of credit institutions in the city as of November 1, 2021, reached VND 2,679.6 trillion, up 0.8% over the previous month and up 10.6% over the same period last year.

Total local budget expenditure (not including advance), accumulated in the first 11 months of 2021, the city is estimated to realize VND 79,353 billion, reaching 81.8% of the estimate and increasing 17.1% over the same period in 2020. Total expenditure local budget balance is estimated at 77,368 billion VND, reaching 83% of the forecast, accounting for 97.5% of total local budget expenditure and increasing 24.7% over the same period in 2020. In which, spending on development investment estimated implementation of 14,540 billion dongs, reaching 38% of the estimate, accounting for 18.3% of total local budget expenditure and down 44.2% over the same period; recurrent cost is estimated at 52,585 billion VND, exceeding 9.7% of the estimate, accounting for 66.3% of total local budget expenditure and increasing by 50.7% over the same period.

HARD AND DETERMINED THE LAST MONTH OF 2021

Ho Chi Minh City’s economy in the last two months of the year takes place amid the threat of world economic growth and global trade due to the impact of the fourth wave of the Covid-19 epidemic. In the city, protecting health and stabilizing production, maintaining security, and social security is a challenge that requires great efforts of the city government, businesses, and people.

To simultaneously complete the two tasks of “conquer the epidemic, protect people’s health, stabilize society, and support businesses to overcome difficulties” from now until the end of 2021, the city will focus on solving it quickly. Some of the main contents are as follows:

Firstly, continue to strictly implement epidemic prevention and control measures under the National Steering Committee for Disease Prevention and Control direction. Not subjective, negligent; selective isolation, flexibility, adaptation to the new normal; improve testing capacity at airport and port border gates along with Covid-19 treatment capacity, vaccination capacity at state and private health facilities.

Second, mobilize the strength of the entire political system, arouse the cultural strength of the Vietnamese people so that each person is a soldier in protecting the health of themselves and their families, and protecting businesses. Offices, schools are not infected with the virus. Implement tax reduction and extension policies; social insurance, unemployment insurance, and health insurance to maintain business operations to create jobs and minimum income for employees.

Third, focus on handling bottlenecks and 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. In the immediate future, priority should be given to removing difficulties for slow-disbursed projects, especially critical, large-scale, pervasive projects to improve production capacity for the economy.

Fourth, promote the application of information and communication technology in all administrative activities of state agencies, especially those performing public administrative services, considering this an urgent task in building E-government serves the people, thereby changing management thinking and management methods in the whole society. Take advantage of the opportunity to speed up data digitization in all agencies, primarily residential and business data.

(Source: VnEconomy)