Covid-19 sends HCM City’s budget collection tumbling

14-Apr-2020 Intellasia | The Saigon Times | 6:02 AM Print This Post

HCM City collected VND947 billion for the State budget each day in March, dipping by 31 percent year-on-year and accounting for only 57.9 percent of the target, set at VND1.63 trillion, due to the coronavirus pandemic, HCM City Chair Nguyen Thanh Phong said at a web conference between the central government and the ministries and localities today, April 10.

In the January-March period, the city’s budget collection totalled VND88.2 trillion, down 8.6 percent against the year-ago figure.

The growth of a number of sectors, especially the service sector and various industries, was way below their targets, Phong said.

Covid-19, the disease caused by the novel coronavirus, has taken a heavy toll on the country and especially the city, he noted.

The city’s gross regional domestic product (GRDP) in January-March edged up by 0.42 percent year-on-year.

Phong attributed the low GRDP growth to the poor performance of the service sector. The service sector, which was hit hardest by Covid-19, contracted 1.2 percent year-on-year while it makes up a large part of the city’s GRDP, at 60.6%.

Besides this, international tourist arrivals in HCM City plummeted by 42.2 percent year-on-year, while its industrial production index inched down by 1%, the local media reported.

The service and manufacturing sectors account for a combined 79.3 percent of the city’s GRDP, so their negative performance put a crimp on the city’s GRDP growth over the first three months of the year.

The number of newly registered enterprises in the first quarter of 2020 dropped by 15.7 percent year-on-year, Phong stated, adding that over 6,500 firms had dissolved or suspended their operations.

The city attracted a mere $1.05 billion in foreign investment in January-March, plunging by 33 percent year-on-year.

When the disease is contained, the city will take various steps to promote the growth of various sectors to revive its economy, Phong confirmed.


Category: Economy, Vietnam

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