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Ho Chi Minh City targets double-digit growth this year

Ho Chi Minh City targets double-digit growth this year

Tuesday, January 07, 2025, 17:01 GMT+7
Ho Chi Minh City targets double-digit growth this year
The signing ceremony for a cooperation agreement between the Ho Chi Minh City State Financial Investment Company and nine major banks to jointly mobilize funds for the city’s projects on January 6, 2025. Photo: N. Binh / Tuoi Tre

Ho Chi Minh City requires a total investment of over US$24 billion for key projects to achieve an economic growth rate of at least 10 percent in 2025, the city leader has said.

Chairman of the People’s Committee Phan Van Mai made the statement while attending a signing ceremony for a cooperation agreement between the Ho Chi Minh City State Financial Investment Company (HFIC) and nine major banks on Monday.

The agreement is aimed at mobilizing funds for socio-economic and infrastructure development projects in the city to meet its development goals, including a gross regional domestic product (GRDP) growth rate of 10 percent or higher.

The nine banks include Vietcombank, VietinBank, BIDV, Agribank, VPBank, MB, ACB, Sacombank, and Saigonbank.

Addressing the ceremony, chairman Mai affirmed that the metropolis needs to mobilize a total of about VND620 trillion ($24.4 billion) in 2025, the highest-ever yearly figure, to reach its development targets.

Of the figure, VND110 trillion ($4.3 billion) will come from public investments, while VND510 trillion ($20.1 billion) will be provided by sources outside the state budget, such as bank loans, foreign direct investment, and overseas remittances.

Chairman Mai underscored that the city has set a GRDP growth target of 9-10 percent for the 2026-30 period and will need funding worth at least VND4,400 trillion ($173.3 billion) for these five years.

According to a directive by Prime Minister Pham Minh Chinh, this figure may amount to VND5,000 trillion (nearly $197 billion), Mai said, adding that banks will continue to be the driving force behind the growth.

Under the agreement, the HFIC and these lenders will join hands to fund priority projects through syndicated loans, said Truong Tuan Anh, general director of HFIC.

They will also invest in central government bonds, arrange the issue of municipal bonds, and research and implement proper capital mobilizaion mechanisms.

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Vinh Tho - Nhu Binh / Tuoi Tre News

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