HCMC is Vietnam’s largest city, the nation’s financial centre and a major economic and cultural hub. The city’s economic development has focused on financial and commercial services, tourism, transport and communications, cultural activities, healthcare and high-tech worker training. HCMC is included in the Southern Key Economic Region (SKER) which also includes Dong Noi, Ba Ria-Vung Tau, Binh Duong, Tay Ninh, Binh Phuoc and Long An provinces. The SKER, anchored by HCMC, is Vietnam’s leading industrial centre.

Highlights:

• GDP growth slowed to 10.7% y-o-y in 2008, from 12.6% in 2007. The official target for GDP growth in 2009 is 10%.
• The fall in commodity prices has resulted in the revival of work on numerous building sites across HCMC, though other projects remain on hold or have been delayed as developers consider their options with an eye on the economy.
• The US$6 billion stimulus package announced by the Government may include measures to facilitate the development of affordable housing in HCMC and Hanoi. Details have not been announced.
• The retail and services sector is a major component of the HCMC economy, and the Government and market will be keeping a keen eye on domestic consumption, especially if layoffs and wage freezes jump, since any substantial downturn in consumer spending would have knock-on effects throughout the economy.