HCM City (VNA) – Ho Chi Minh City posted an economic growth rate of 7.86 percent year-on-yearin the first half of the year to 611.5  trillion (26.3 billionUSD).

The figure was announced at a meeting of the municipal People’s Committee on July19 to review the socio-economic performance in the first six months andlaunch plans for the remaining months.

During the reviewed time, the service sector expanded 8.06 percent, industryand construction at 6.7 percent and agriculture at 6.01 percent.

Retail sales increased by 12.2 percent to 558.5 trillion VND (23.99billion USD).

Meanwhile, exports grew an estimated 9.2 percent to 19.6 billion USD.

Foreign direct investment was worth 3.21 billion USD, up 20 percent.

Up to 4.25 million international tourists visited the city, an increase of 10.9percent, with revenues from tourism topping 73 trillion VND (3.13billion USD).

Speaking at the meeting, Chairman of the People’s Committee Nguyen Thanh Phongsaid the city must make greater efforts to achieve its target of8.3-8.5 percent economic growth this year.

The city still faces many challenges such as illegal constructions;shortcomings in resolving cases related to land, siteclearance and compensation; problems related to wastemanagement and environmental protection, African swine fever; andrising drug crimes.

He called on the heads of government agencies and district leaders to focus onaccomplishing eight major missions this year.

They include administrative reform, investment promotion, equitisation ofState-owned enterprises, urban planning and management, clearing obstaclesto speed up the progress of key projects, science-technology-innovation development,international cooperation, and ensuring national defence and securityand maintaining social order and safety.

The city would continue two projects on developing logistics and e-commerce, headded.

Earlier at a meeting on July 17, the city hascommitted to develop a detailed plan to turn it into a regional andinternational financial hub after years of delay.

As an international financial hub, HCM City, which contributes 45 percent of the country’s GDP, would enhance socio-economic growth locally, nationally andregionally.

A feasibility reporton the plan would be submitted to the People’s Council in October.

By June 2020, the city is expected to start building a financial centre complex in the Thu Thiem new urban area in district 2.

The city will alsoreport to the Prime Minister by the end of the year on a special incentivepolicy for the project.

The city accountsfor only 9.36 percent of the country's population and 0.6 percent of thecountry’s total area, but it contributes 14 percent of the country’s exportvalue and 27 percent of State revenue. It also accounts for 14.1 percent of thecountry’s total foreign investment.-VNA