Ho Chi Minh City plans to boost public spending, encourage consumption, and expand export markets to achieve a 7.5% growth rate this year, according to its leader.

During a meeting last Friday, Phan Van Mai, chairman of the municipal People’s Committee, stated that the city aims for at least 7.5% growth in 2024.

He mentioned that the city would focus on accelerating public spending for the remainder of the year to meet its growth target, as it has not yet achieved its public spending goals.

In the first seven months of the year, only 11.8 trillion Dong of public investment has been disbursed, representing just 14.9% of the annual plan.

The aim is to disburse 90% of the allocated 86 trillion Dong budget by the end of the year.

“At the current rate, it must disburse a minimum of 10 trillion Dong each month until the end of the year,” he said. 

The city official has urged contractors of major projects to promptly report any challenges they encounter, The Star reports.

Furthermore, Phan Van Mai cautioned that strict measures will be implemented against contractors who underperform or fail to meet established standards. 

The city has instructed agencies to cut the time needed to appraise and approve investment projects by at least 30%.

To monitor the quality and progress of major initiatives, specialised groups and project teams have formed a steering committee. 

In addition, although the city's exports reached $26.1 billion this year, an increase of 10.4% year-on-year, there are indications of a slowdown in export growth, according to the Statistics Office.

Ho Chi Minh City forecasts significant growth in major export markets such as the United States and China in the second half of the year, which should benefit its exports. 

However, these economies also face headwinds that could hinder recovery, presenting potential risks to export activities.

Mai stated that the city would also focus on boosting domestic consumption and investment to enhance overall demand this year.

He also stressed that diversifying and exploring new export markets are essential strategies to strengthen production and business operations.