Ho Chi Minh City - Economy

Economy

Ho Chi Minh City is the economic center of Vietnam and accounts for a large proportion of the economy of Vietnam. Although the city takes up just 0.6% of the country's land area, it contains 8.34% of the population of Vietnam, 20.2% of its GDP, 27.9% of industrial output and 34.9% of the FDI projects in the country in 2005. In 2005, the city had 4,344,000 laborers, of whom 130,000 are over the labor age norm (in Vietnam, 60 for male and 55 for female workers). In 2009, GDP per capita reached 2,800 US$, compared to the country’s average level of $1042 USD.

In 2007, the city's GDP was estimated at $14.3 billion, or about $2,180 per capita, up 12.6 percent from 2006 and accounting for 20% of the country's GDP. The GDP adjusted to Purchasing Power Parity (PPP) reached $71.5 billion, or about $10,870 per capita (approximately three times higher than the country's average). The city's Industrial Product Value was $6.4 billion, equivalent to 30% of the value of the entire nation. Export – Import Turnover through HCMC ports accounted for $36 billion, or 40% of the national total, of which export revenue reached $18.3 billion (40% of Vietnam's total export revenues). In 2007, Ho Chi Minh City's contribution to the annual revenues in the national budget increased by 30 percent, accounting for about 20.5 percent of total revenues. The consumption demand of Ho Chi Minh City is higher than other Vietnamese provinces and municipalities and 1.5 times higher than that of Hanoi.

As of June 2006, the city has been home to three export processing zones and twelve industrial parks. Ho Chi Minh City is the leading receiver of foreign direct investment in Vietnam, with 2,530 FDI projects worth 16.6 $ billion at the end of 2007. In 2007, the city received over 400 FDI projects worth $US 3,000,000,000. In 2008, it attracted $US 8.5 billion in FDI.

In 2010, the city's GDP was estimated at $ 20,902 billion, or about $2,800 per capita,up to 11.8 percent from 2009.