Dr. Truong Minh Huy Vu: Ho Chi Minh City's economy improves thanks to removing backlog projects and unblocking capital flows.

Dr. Truong Minh Huy Vu - Director of the Ho Chi Minh City Institute for Development Studies - commented on this at the conference on the results of the socio -economic situation of Ho Chi Minh City in July; tasks and solutions in August 2025.

The report of the City People's Committee shows that the total state budget revenue in the first 7 months of 2025 was 472,588 billion VND, reaching 70.4% of the central government's estimate and equal to 114.6% over the same period.

Total local budget expenditure in the first 7 months of 2025 was VND 98,290 billion, reaching 34.8% of the estimate.

According to Mr. Vu, the socio-economic results of Ho Chi Minh City from the beginning of 2025 to now have been relatively positive; many indicators and signs have improved thanks to the removal of backlog projects, unblocking capital flows and strengthening investor confidence.

These are bright spots, creating excitement for the business community in the context of many fluctuations in the world and regional situation.

However, the Director of the Institute for Urban Development Studies said that absorption capacity is an issue that the city needs to pay special attention to after merging with Binh Duong and Ba Ria - Vung Tau .

"The problem now is not whether there is money or not, but "where does the money go" and whether the money goes into effective projects or not. If the money flow into the market is not well controlled, the inflation index and consumer price index will increase," Mr. Vu said.

The Director of the Institute for Development Studies of the City added that in the current context, many investors will come to Ho Chi Minh City to learn about and propose projects. Therefore, capital flows will come, but will not last long if the city cannot promptly absorb the policies and requirements of investors.