Ho Chi Minh City

US$79 billion needed for HCMC’s development

Ho Chi Minh City needs US$79 billion for the city’s development, said a representative from the city People’s Committee at a meeting of calling for social contribution on April 27

US$79 billion needed for HCMC’s development

Chairwoman of the city People's Council Nguyen Thi Quyet Tam presided the meeting which is aimed at utilizing investment for the city’s growth in the period 2016-2020.
In the meeting, director of the municipal Department of Planning and Investment said that in 2016 - 2017, social investment reached VND645 trillion up 8.4 percent annually and 30 percent of Gross Regional Domestic Product (GRDP).
To have the amount of $79 billion for the city’s development to 2020, city authorities have adopted several measures such as perfecting mechanism and policies by improved administrative formalities, amending law to facilitate investors.
Moreover, city leaders are transparent in calling for investment of each sector, review land fund for clearance.
Deputy head of the Department of Finance Le Ngoc Thuy Trang said that the department is helping People’s Committee in promoting progress of equitizing state firms which the government will collect estimated sum of VND67 trillion.
Apart from that, the city is managing 10,832 public empty land; later city authorities will use the land to collect funds for the city.
Director of Department of Transport Bui Xuan Cuong said that the city has publicly increase parking lot in downtown city, pavement fees, advertising in buses, and such.
However, many participants said that investors are still worried about BOT investment because of prolonged formality and impenetrability.
Social investment seemed to shrink from 9 percent for the period 2011 - 2015 to 8.4 percent in 2016 - 2017; however, there has been no explanations and measure to prevent it.
Though foreign direct investment (FDI) increased, no measure has been adopted to take advantage of FDI for domestic growth. Worse, no explanation of social investment waste was presented. For instance, no project was implemented in 118 land lots or some of them were used unreasonably or remittance is not useless in developing the city.
Standing Deputy Chairman of People’s Committee Le Thanh Liem affirmed of the amount of $7.6 billion needed for the city’s growth in the period 2016 - 2020, state budget can meet 20 percent.
Therefore, to increase the budget, in the next time People’s Committee will publicize projects that need investment plus provide land lot for investment of service, hi-tech industry, supporting industry, finance center and startup firms.
At present, the city has announced 127 projects which need investment of VND500 billion up. In addition, the city will improve labor force’s quality and call for contribution of Vietnamese experts and scientists in the world to help authority in building the city.
Speaking at the session, Ms. Tam noted that People’s Committee should consider reduction of state budget investment; yet, city authorities have to take heed to reduce gradually not to affect social contribution.
Asides from that, investment taken state budget must pour in major projects to meet society’ requirements. City authorities must increase administrative formality reform and transparency in management in all sectors as well as take advantage of mechanism to hike collection for the city’s development and social security.

By AI VAN - Translated by UYEN PHUONG

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