Urban economies resist downturn

The top five cities’ industry and commerce activities were standing firm against the global economic crisis and a slowdown in the domestic economy, according to a study of commerce over the last two years.

The study was released at a conference on industry and commerce held in Can Tho yesterday, and reviewed the results of businesses in the top five cities over the last two years, in order to help boost co-operation among cities. The top five cities are Ha Noi, HCM, Hai Phong, Da Nang and the host Can Tho.

In the last two years, the industry and commerce sector of the five biggest cities was changing, they have taken full advantage of Viet Nam joining the WTO and made great efforts to co-operate.

The five cities’ industries are expected to fulfill expectations, producing a total value of more than VND316.340 trillion, accounting for 47.6 per cent of the nation’s industrial output value. Hai Phong saw the highest growth of 18.5 per cent, more than 1 per cent higher than Can Tho. Ha Noi and Da Nang grew 14 per cent, while HCM increased by 13.5 per cent.

Despite the economic slowdown which has affected the country’s economy, the five cities still managed to stand firm. Industrial production has been stable.

Thanks to the Government’s proper and timely adjustments to limit rapid inflation and stabilise the macro-economy, the cities’ commercial activities gained back their development rhythm quickly.

The total export turnover of the five cities reached US$34.85 billion, accounting for 53.62 per cent of the country’s total, while the import turnover figure was almost $44 billion, or 52 per cent. The total retail and services revenue was estimated at more than VND438.3 trillion, which accounted for over 45 per cent of the nation’s total.

HCM City maintained its role of leading city in industrial production and commercial activities. The commercial hub is well connected with other commercial cities, in the southern area in particular, and throughout the country in general.

The capital city of Ha Noi also maintained its industrial production speed with revenue estimated at VND84.05 billion, an increase of 14.8 per cent compared to last year.

Participants at the conference proposed the Ministry of Industry and Commerce co-ordinate with local departments to make plans for developing the industrial and commercial sector in the region, based on the country’s industrial and commercial development strategy, in order to avoid overlapping in investment planning and creating effective co-ordination amongst cities.

The participants also suggested that the ministry prioritise investing in infrastructure like roads, seaports, and airports to give the key cities advantages to maintain their lead in industrialisation and modernisation, so as to be an inspiration for the development of other cities and provinces.

Conditions should also be worked out for those five pivotal cities to build co-operation plans to develop industrial production and commercial activities, helping each other to fully tap their potential. (VNS)