HCM City (VNS/VNA) - Despite facing various challenges, Ho Chi Minh City’s Gross Regional Domestic Product (GRDP) grew 6.46% in the first half of the year, showing signs of recovery.

According to a report by the HCM City Statistics Office, the city’s index of industrial production (IIP) grew 5.6% during the period, the highest increase in the past three years.

The city saw a 10% year-on-year increase in total retail sales of goods and services.

As of June 20, 25,248 enterprises entered the market this year, registering 215 trillion VND in capital, up 9.6% in enterprise number and 1% in capital from the same time last year.

Its state budget collection was also a bright spot at more than 265 trillion VND, rising 16% against the same time last year.

However, the city fell short of its public investment disbursement target, with only 15 trillion VND disbursed by the end of June, or 19% of the set target instead of the expected 30%.

It aims to disburse 73 trillion VND, equivalent to 95% of public investment by year-end.

The city saw a surge in foreign tourist arrivals, with nearly 2.7 million visitors in the first half of the year, up 38% year-on-year and representing 44.6% of the annual target, driven by a series of festivals and tourism promotion events.

It also welcomed over 17 million domestic tourists, up 4.4% year-on-year and making up 45% of the yearly target.

Its tourism revenue saw a notable surge of 14.6% during the period, reaching 92.6 trillion USD.

In addition, progress of the first metro line (Ben Thanh – Suoi Tien) has been 98% completed, with the city aiming to start operations by November.

Phan Van Mai, chairman of the People’s Committee, acknowledged the challenges faced by the city, such as low credit growth and a slow recovery in the real estate market.

To achieve its growth target of 7.5-8% for the year, experts recommend focusing on high-tech industries, financial services, and stabilising the real estate market.

Diversifying export markets and expanding to potential markets such as Japan, the Republic of Korea, and India are also essential strategies to support production and business activities.

Vietnam reported a 6.42% year-on-year GDP growth in the first half, with the Asian Development Bank forecasting a growth rate of 4.6% for Southeast Asia this year.

Vietnam and th🍒e Philippine📖s are expected to have the highest growth rates in the region in 2024, reaching 6%./.