Positive economic growth was recorded in Ho Chi Minh City during the first seven months of 2021.

This is according to the city’s Statistics Office, which said the industrial production index (IIP) rose by 2.3% between January and July. The four key industries - food and beverage, pharmaceutical chemistry, electronics, and mechanical engineering – rose by an average 2.15% annually.

This is despite the city struggling with the fourth wave of the Covid pandemic. The Statistics Office added that Ho Chi Minh City must continue to carry out successful pandemic prevention actions, and promote production in areas where there are no cases.

Moreover, exports by city enterprises - including crude oil - increased by 8.8% to over $24.6 billion.

The coronavirus crisis has impacted consumer goods and services sales, falling by 1.8% to $25.5 million. That said, the travel and tourism industry bore the brunt of the pandemic.

Between January and mid-July a total of 20,906 businesses were established, with a total registered capital of $15.3 billion, representing year-on-year declines of 4.6% and 9.1%.

In addition, foreign direct investment in the first seven months of 2021 fell by 25.1% to $1.78 billion. Whereas tax and other revenues rose 18.1% to $10.1 billion.

According to a city tax department official, it was expected that collections would be impacted over the next few months.

Director of the tax department, Le Duy Minh said they had strived to accelerate VAT refunds in order to assist businesses and individuals.

He added that tax collection for the remainder of the year would be difficult and require thorough and effective measures.