HCM City benefits from nation’s WTO membership

HCM City benefits from nation’s WTO membership

14/01/2008 -- 11:24 AM
HCM City (VNA)- One year of WTO membership was marked with an all-time increase in foreign direct investment (FDI) and exports for Ho Chi Minh, making the southern economic hub to lead the nation in these fields.

FDI into the city rebounded to 3 billion USD with over 400 projects in 2007, representing an annual surge of 28.6 percent after years of sharp decrease. FDI from overseas Vietnamese also increased eight fold over 2006.

Figures have shown that the once “Far Eastern Pearl” remained to be the most attractive destination for foreign investors.

Investment quality has also improved as investors have shifted their focus to investment scale and hi-tech from labour intensive projects.

Exports revenues in 2007 recorded 18.3 billion USD while foreign arrivals into the city hit a 3 million mark, representing an increase of 14.6 percent and accounting for 70 percent of the national total.

Cargo handling through Ho Chi Minh City ’s ports reached 50.5 million tonnes, brightening the city’s future as a regional and continental port metropolis by 2020.

Total social investments increased 24.2 percent to 84.5 trillion VND (5.20 billion USD), partially thanks to the establishment of more than 18,500 new enterprises with a combined charter capital of 160 trillion VND.

As a result, the city registered a gross domestic product growth rate of 12.6 percent, an all-time high and an increase of 12 percent over the five year (2006-10) average target.

The municipal economy expanded by 2.5 times from 2001, making a plan for a three-fold increase by 2010 well grounded.

Its annual per-capita income reached 2,100 USD in 2007 and is expected to hit 3,000 USD in 2010. The city’s five-year poverty alleviation programme fulfilled its goal two years ahead of schedule by bringing the number of families living under the poverty line of six million VND per family member a year down to 1.9 percent.

Deputy Chairperson of the municipal People’s Committee Nguyen Thi Hong attributed all these achievements to the city’s great efforts to cash in on opportunities and overcome difficulties of the first year of the country’s WTO membership.

“The city named after Great President Ho Chi Minh has not only established itself but also rising above itself,” she added.

However, difficulties and challenges remain ahead especially from January 1, 2009, when the country will fully open its market on trade and goods under its WTO commitments, expert warned.

Many said the city should concentrate on speeding up the construction tempo of traffic projects along with faster disbursement of licensed projects.

To meet that end, the city should make a breakthrough in reforms of administrative procedures, which now costs several years for a project to kick off its construction, experts emphasised.--Enditem

(VNAgency)