2 Months into the Year, Revenue from Land in Ho Chi Minh City Approaches 1 Trillion VND, Is the Real Estate Market Showing Signs of Recovery?
Recently, the People’s Committee of Ho Chi Minh City (HCMC) held a meeting to assess the economic and social situation in February and the first two months of 2024. According to the report presented at the meeting, the total state budget revenue in the first two months of 2024 is estimated to reach over 103.164 trillion VND, which is 21.37% of the year’s plan and a 13.69% increase compared to the same period last year. Specifically, domestic revenue is 87.664 trillion VND, accounting for 24.91% of the plan and a 25.32% increase compared to the same period last year, while revenue from import and export activities is 15.500 trillion VND, accounting for 11.85% of the plan and a 25.43% decrease compared to the same period last year.
Positive Signs of Real Estate Market Recovery
The total local budget expenditure (excluding advances) is 10.373 trillion VND, accounting for 6.92% of the plan and a 61.57% increase compared to the same period last year. Of this, investment expenditure is 3.778 trillion VND, accounting for 5% of the plan and a significant increase compared to the same period last year, while regular expenditure is 6.405 trillion VND, accounting for 10.1% of the plan and a 5.87% increase compared to the same period last year.
The total retail sales of goods and consumer services in the first two months of 2024 are estimated to reach 84.200 trillion VND, a 16.4% decrease compared to the previous month, but a 7.9% increase compared to the same period last year. Specifically, the retail sales of goods are estimated to reach 41.783 trillion VND, an 11.9% decrease compared to the previous month, but an 8.7% increase compared to the same period last year. The decrease in sales can be attributed to consumer habits and the majority of people focusing on shopping before the Tet holiday.
According to the evaluation of the People’s Committee of HCMC, the economic and social situation in the first two months of 2024 has several positive aspects. The real estate market has shown more positive signs of recovery, with an estimated increase of 20.1% in real estate business revenue compared to the same period last year. Credit growth has reached 0.6% compared to January. The number of operating businesses and newly registered businesses has increased compared to the same period last year. The consumer price index has increased at a lower rate compared to the national consumer price index, creating favorable conditions to stimulate domestic consumption.
Additionally, according to information from the Department of Natural Resources and Environment, the number of land and real estate files in the first two months of 2024 is 67,750 compared to 48,949 files in the first two months of 2023, an increase of 18,801 files. As a result, revenue from land has increased. Specifically, in the first two months of this year, revenue reached 103.164 trillion VND compared to 90.741 trillion VND in the first two months of 2023. Revenue from land sales tax has increased significantly, reaching 955.3 billion VND compared to 659.9 billion VND in the first two months of 2023.
Challenges and Solutions
However, the economy of HCMC still faces some limitations. Specifically, the disbursement rate of public investment capital is low, and although there is an increase in the number of foreign direct investment (FDI) projects, the scale of capital has decreased by 47% compared to the same period last year. The unexpected weather conditions, such as abnormal heatwaves and tidal surges exceeding the level III warning in some areas, have affected the lives of a portion of residents. Based on these realities, HCMC has formulated 10 groups of tasks and solutions to overcome these limitations and promote economic and social development as planned.
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