Binh Phuoc Intersection connecting Thu Duc City and Binh Duong Province
The city has been the country's largest money-maker with the annual contribution of VND300,000-330,000 billion to the State budget revenue while it has been allowed to keep just 18 percent of its annual revenue. This is the lowest ratio in the country. Therefore, the city is coping with a serious lack of investment capital for the development of various sectors, especially the healthcare infrastructure which weaknesses have been exposed during the pandemic.
The city’s economy has lost nearly US$12 billion due to Covid-19 over the past two years. The increases of three percent of its budget revenue equivalent to around VND6,000 billion will raise the city’s public investment capital of more than VND51,000 billion in 2022.
The permission allowing HCMC to get higher budget retention rate will create favorable conditions for the city to solve its challenges, consisting of transport infrastructure, the water supply system, digital infrastructure, housing projects for low-income people and workers, healthcare units at all levels and main transport constructions of intersections, tunnels, ports, road regional connection project, belt roads no.2,3,4.
The Dau Giay toll station on the HCMC-Long Thanh-Dau Giay Expressway
The city is estimated to need an investment capital of more than VND600,000 billion in the next five years while the State budget can allocate VND250,000 billion.
The city has to continuously improve its investment environment, develop e-government and digital government, promote the urban government, accelerates administrative reform, and establish quick response groups to create favorable conditions for businesses and attract resources from the community.
In addition, the city needs to use Resolution No 54 on piloting special mechanisms and policies for HCMC, and strengthen the change of land use purpose, land auctions, equalization of state-owned enterprise, and the allocation of 50 percent of selling public properties to develop the investment capital.
