Ho Chi Minh City feels pressure to reduce drag on Vietnam’s 2023 growth target

VIETNAM’S bustling cosmopolitan metropolis in the south, Ho Chi Minh City, is under pressure to produce stronger economic growth in the second half of this year, after posting a weaker-than-expected expansion in the first quarter.

The economy of the South-east Asian nation’s largest city grew by just 0.7 per cent in the first three months of 2023, the lowest among Vietnam’s five municipal cities; that growth rate was also way below forecasts.

Ho Chi Minh City is the largest contributor to Vietnam’s gross domestic product (GDP), and the country’s top source of foreign direct investment. Its first-quarter showing was lower than the national average, ranking 56th out of Vietnam’s 63 cities and provinces, based on figures by the Statistics Office.