HCMC's Thu Thiem 2 Bridge linking downtown District 1 and Thu Duc City. Photo by VnExpress/Quynh Tran

 

The HCMC economy grew by 5.73 percent in the second quarter to take growth in the first six months to 3.82 percent, authorities said.

 

It had contracted last year.

 

VN Express reported that the economy has "recovered quickly, uniformly and quite comprehensively," city Party secretary Nguyen Van Nen said.

 

People’s Council chairperson Nguyen Thi Le said the recovery was "faster than expected."

 

Commercial and service sectors grew the fastest at 4.83 percent, followed by industry and construction at 2.23 percent.

 

The index of industrial production has been rising since February and is up 3.1 percent for the first six months.

 

But electronics production shrank on falling global demand, a chip shortage and high transport costs, director of the city Department of Industry and Trade, Bui Ta Hoang Vu, said.

 

Eight out of nine service sectors grew with real estate bucking the trend, shrinking by 5.82 percent.

 

The fastest growth was seen in finance and banking, information, communication, and logistics.

 

Some other key indicators also rose, including import-export (by 13.8 percent), tourism revenues (29.9 percent) and foreign direct investment (60 percent).

 

But rising costs, driven by the Russia-Ukraine crisis and higher fuel prices, has affected consumption and recovery.

 

Public spending occurred at the slowest pace ever, with only 17 percent of the targeted amount spent in the first half of the year.

 

During the rest of this year the city will focus on promoting public spending, mitigating difficulties faced by companies, improving the business environment, and enhancing tourism activities.

 

Each district should develop a specific tourism product, deputy chairperson of the People's Committee, Phan Thi Thang, instructed.

 

The city will also roll out price stabilization programs and closely monitor fuel and gold prices to reduce inflation risks.

 

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Reminiscent of 1989, it was then after 40 years of smothering. I had 3 missions with intervals of 3 months. Businesses popping up everywhere, HCMC in November 89 wasn't at all like HCMCH of March 89.

 

This is Vietnam.