HO CHI MINH CITY: Ho Chi Minh City will accelerate public spending, stimulate consumption and expand export markets to achieve a growth rate of 7.5% this year, its leader says.

Speaking at a meeting last Friday, Phan Van Mai, chairman of the municipal People’s Committee, said the city aimed for a minimum growth of 7.5% this year.

He said it would focus on accelerating public spending for the rest of the year to achieve the growth target, as it has not met its public spending target so far.

It has disbursed only 11.8 trillion dong of public investment in the first seven months, or only 14.9% of the annual plan.

It aims to disburse 90% of the allocated 86 trillion dong budget this 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 report any challenges encountered promptly.

He warned of implementing stringent measures against contractors who fail to perform adequately or do not comply with established standards.

The city has directed agencies to reduce the timeframe required to appraise and approve investment projects by no less than 30%.

To oversee the quality and progress of key initiatives, specialised groups and project teams have established a steering committee.

In addition, while the city’s exports totalled US$26.1bil this year, up 10.4% year-on-year, there are signs of a slowdown in export growth, according to the Statistics Office.

Ho Chi Minh City expects major export markets like the United States and China to see significant growth in the second half, which will benefit its exports.

However, these economies also face challenges that could impede recovery, posing potential risks to export activities.

Mai said the city would also promote domestic consumption and investment to improve total demand this year.

Diversifying export markets and exploring new markets are also crucial strategies to bolster production and business operations, he added.

 - ANN