HCMC, driving force of economic growth

18:31 | 14/05/2015 Economy- Society

(VEN) - Over the last four decades, Ho Chi Minh City has implemented action plans and achieved breakthroughs, significantly contributing to the formation and improvement of institutions and policies needed to run the Vietnamese economy according to market principles.

HCMC, driving force  of economic growth

In 2014, Ho Chi Minh City contributed 21.7 percent to Vietnam’s GDP

High and sustainable growth

From 1976-1985, the city’s gross domestic product (GDP) grew an average 2.7 percent annually, but from 1991-2010, Ho Chi Minh City was one of the few localities to achieve a double-digit growth throughout these two decades. Since 2011, the city’s economy has grown approximately 10 percent per year - 1.6 times higher than the average economic growth of the whole country. In 2014, the city contributed 21.7 percent to Vietnam’s GDP and 30.3 percent to the total revenue of the state budget; and city per-capita income reached US$5,131, 2.5 times higher than the national figure.

The city has achieved positive results in curbing and controlling inflation. From 2001-2014, despite price changes, the consumer price index (CPI) in the city was lower than the average CPI for the whole country. These results were achieved thanks greatly to the market stabilization program.

Breakthrough steps

Over the last three decades since Vietnam began to implement its renovation policy, Ho Chi Minh City has significantly contributed to improving economic institutions of the country.

In 1989, the city’s people’s committee issued a decision promoting the development of private, limited and joint stock companies. The decision provides an important practical basis for the seventh tenure National Assembly to issue the Private Enterprise Law and the Corporate Law in 1991. In 2014, the private sector created 59.7 percent of the city’s GDP, generating jobs for 70 percent of local workers.

Ho Chi Minh City People’s Committee Chairman Le Hoang Quan: Over the last nearly three decades, Ho Chi Minh City has been one of the leading localities nationwide in promoting renovation and economic growth.

From 1986-1990, many collective credit institutions were established to operate in the form of credit funds or credit cooperatives. In October 1987, Ho Chi Minh City established the Saigon Joint Stock Bank for Industry and Trade – Vietnam’s first commercial joint stock bank. In May 1989, the Vietnam Export Import Commercial Joint Stock Bank (Eximbank) was established. Based on these practices, the National Assembly issued the Ordinance on Banks, Credit Cooperatives and Financial Companies on May 23, 1990, creating favorable conditions for commercial joint stock banks to develop.

In 1991, Ho Chi Minh City established the Tan Thuan Export Processing Zone - the first export processing zone in Vietnam. In 1992, the city began to reorganize and equitize state-owned businesses. The Refrigeration Electrical Engineering Corporation (REE) was the first state-owned business to be equitized in Vietnam in 1993. In 1996, the government launched a nationwide program to promote the equitization of state-owned businesses.

Dr. Tran Du Lich, Deputy Head of the National Assembly delegation from Ho Chi Minh City, member of the Central Theoretical Council, said that Ho Chi Minh City played the role of a driving force of economic growth in the southern provinces and the whole country.

By Thanh Duong

 

Theo ven.vn