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HCMC to seek NA endorsement for special financing mechanism

Van Nam
Friday,  Jun 16,2017,23:33 (GMT+7)
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HCMC to seek NA endorsement for special financing mechanism

Van Nam

Nguyen Hue pedestrian square is seen from the City Hall in the heart of HCMC. The HCMC government is planning to seek a National Assembly (NA) resolution on a special financing mechanism - PHOTO: THANH HOA

HCMC – The HCMC government is planning to push for a National Assembly (NA) resolution on a special financing mechanism that will help the city raise capital for its much-needed investment projects.

Vo Van Hoan, head of the HCMC People’s Committee Office, said at a press conference on June 15 that the city is not as in a good position as Hanoi in terms of financial decision-making power.

Government Decree 48/2017/ND-CP on financial and budgetary mechanisms and policies for HCMC, which took effect from June 10, does not give the city a freer hand than the previous regulations. Hoan said the decree tightens some regulations, putting HCMC at a disadvantage over Hanoi City.

The city will ask the legislature for more financial decision-making power that will help fuel growth in fields such as finance, land, planning, investment, and import-export.

“The HCMC People’s Committee will inform the Standing Board of the HCMC Party Committee of its request for a National Assembly resolution that provides a special financing mechanism for the city, instead of a Government decree,” he said.

The city will seek approval to impose surcharges on a couple of sectors, and collect some urban management fees which are not yet included in the Law on Fees and Surcharges.

For instance, Hoan said, the city wants to have decision-making power when it comes to putting real estate up for tender to raise funds for development. There are 15 other recommendations in its request to be sent to the NA.

The move, if approved, would make it easier for the city to raise capital for big investment projects, he stressed.

Facing a severe shortfall of capital, the city will have to raise funds from the private sector. Its budget can meet around one-fifth of an estimated VND850 trillion (US$37.4 billion) which will be needed in the 2016-2020 period, city chairman Nguyen Thanh Phong said at a conference on Wednesday.

Some key sectors like traffic infrastructure, environmental protection, flood control, and healthcare will need huge amounts of capital in the coming time.


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