HCMC – HCMC’s gross regional domestic product (GRDP) expanded a mere 0.7% in the first quarter of this year, the lowest among five centrally-governed cities, showed official data.

In January-March, the industry-construction sector contracted by 3.6%, accounting for a fifth of the city’s GRDP, according to the HCMC Statistics Office.

Industrial production conditions improved in March, with the index of industrial production (IIP) growing 4.8% month-on-month and 2.3% year-on-year. However, the IIP in the quarter dipped 0.9% over the same period in 2022.

The city’s merchandise exports inched down 16.8% from the first quarter of last year at US$10.1 billion as business conditions worsened.

Meanwhile, public investment disbursement moved at a snail’s pace, reaching a mere 2.2% of the total planned for 2023 by the prime minister, at VND952 billion.

Still, HCMC’s GRDP grew thanks to the expansion of the service and agricultural sectors and a surge in foreign direct investment (FDI). The service sector picked up 2.07%, making up 66.1% of the city’s GRDP. Of which, retail sales and consumer services increased 4.7% against the same period last year.

The southern city reported 216 new FDI projects with newly-registered capital totaling US$133 million between January and March, soaring 70% in volume and 30% in value compared to the same period in 2022.