Efforts to accelerate to the finish line

In the context of continued instability in the world , the 20% reciprocal tax rate on Vietnamese goods exported to the US, announced by President Donald Trump, will impact each industry, especially the key industries of Vietnam - Ho Chi Minh City such as electronics, footwear, textiles with each tax rate and the correlation of countries that have export competitiveness with Vietnam in the above mentioned key industries...

Next is how the 40% tax rate for transit goods will affect, so the basic provisions of the so-called "transshipment" should be clearly identified for flexible response. Accordingly, goods exported from a country enjoying tax incentives must have a production process that is entirely, or almost entirely (except for some types of exempted goods) in that country. Or information about the origin of exported goods must be honest, without fraud about the entire production process. Thus, manufacturers who "borrow the road" will either terminate their projects, or will have to adjust their actual investment and production plans in Vietnam as well as promote the domestic production supply chain?

The 0% tax on US goods entering Vietnam, although an opportunity for Vietnam to access high-quality technology and products from US manufacturers at lower costs, is a big problem. It not only affects trade but also has important impacts on investment and shifting supply chains, technology, and people. Therefore, the optimal choice is still to truly awaken the country's internal strength. Specifically, it is necessary to renew the three traditional growth drivers: investment, consumption, and export; at the same time, strongly promote new growth drivers such as digital economy , green economy, circular economy, sharing economy, knowledge economy, and night economy.

In fact, in the first 6 months of the year, the service sector contributed the most (8.58%) to the GRDP growth. Of which, the total retail sales of goods and consumer service revenue was estimated at VND654,279 billion, up 15.8%. Tourism recovered strongly, with total revenue increasing by 27.3%. In the remaining 6 months, the most anticipated and expected highlight is the 80th anniversary of the founding of the country. With a larger space (across the country and the new city after the arrangement of administrative units), the attraction of tourism - services - consumption continues to be a breakthrough opportunity for Ho Chi Minh City, with the "festival" part having been proven to have contributed significantly to economic growth through the celebration of the 50th anniversary of the Liberation of the South and National Reunification in the previous 3 months.

In addition, the disbursement of public investment in the first 6 months of the year was relatively good with more than 31,716 billion VND, reaching 37.1% of the total plan, higher than the same period in absolute value and rate, and exceeding the plan by 10%. Total social investment including public investment and private investment has had many positive changes, especially many projects have been removed, bringing capital to circulate in the market - proving the efforts of the city government to "remove" and "open". The pilot project to create a "green channel" for 10 priority projects for public and private investment along with a "cutting machine" program to drastically reduce administrative procedures should be a priority action.

With new development space, available potential and inter-regional connectivity of the megacity of Ho Chi Minh City, the transport infrastructure and resource mobilization problem are attractive and highly feasible. From metro lines, belt roads, highways, waterway traffic systems on the Saigon - Dong Nai River... are certainly "leverages" with great momentum.

New institutions ready to operate such as international financial centers, multi-purpose service centers, large data centers along with policies, apparatus, and people will create a "path" to form exhibition and service complexes compatible with each satellite city such as: South Saigon area, Thu Dau Mot - Tan Uyen, Ho Tram - Vung Tau complex tourist area...

Ho Chi Minh City will accelerate renewable energy projects, create space for developing marine economic services with Can Gio international transit port, Cai Mep Ha free trade zone, Con Dao special economic zone. In addition, the strategy of green transformation, digital transformation from transportation, energy, to consumption will be calculated and implemented in the combined strength of space, infrastructure, people, and institutions.

Dr. Truong Minh Huy Vu, Director of Ho Chi Minh City Institute for Development Studies

Source: https://www.sggp.org.vn/no-luc-tang-toc-ve-dich-post803152.html