City sees growth ebb as focus shifts

HCM City is set to see a slowdown in economic growth from 2016 onwards, a master plan approved by the Government acknowledges.

The socio-economic development plan for the city — and the Southern Focal Economic Zone – released at a conference yesterday for until 2020 envisages growth of 9.5-10 per cent a year between 2016 and 2020 and 8.5-9 per cent over the next five years compared with 10-10.5 per cent now.


By 2015 income per capita will be US$4,856–4,967, nearly double that by 2020, and $13,340–14,285 by 2025.

The city's average income is 1.5 times that of the nation's.

The region's plans envisage HCM City becoming a special urban zone as well as a scientific and commercial hub on a par with cities in neighbouring countries, Le Hoang Quan, Chairman of the city People's Committee, said.

The city and neighbouring provinces like Dong Nai, Binh Duong, and Ba Ria – Vung Tau would provide the impetus for the development of other localities across the country, he said.

The master plans would become important legal frameworks for the city and the zone to enter a new era of development, that of industrialisation and modernisation, he said.

The city would co-operate with other localities for sustainable development, and give priority to infrastructure development and response to climate change, he said.

It would focus on its strengths like knowledge economy, and its economy would get a rapid makeover into a services-based one, he said.

Under the proposed model, the focus will be one nine groups of services — finance – banking - credit – insurance; commerce; transport; logistics; port; post and telecommunications; information technology and communications; and real estate.

In the industrial sector the focus will be on engineering; electronics - information technology; food processing; and pharmaceutical chemicals – rubber.

There will also be focus on bio-technology, clean energy, and energy efficiency along with the development of high-tech parks and supporting industries.