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Friday, February 3, 2023

HCMC seeks public investment capital

The Saigon Times

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HCMC – HCMC is seeking to lure capital from multiple sources including the private sector and incoming remittance to compensate for a shortfall of state budget for public investment.

According to Phan Van Mai, chairman of the HCMC People’s Committee, the city will be short of capital for public investment projects next year.

The central Government approved allocations of VND55,000 billion for HCMC’s public investment, but the city can only manage VND45,000 billion at the maximum. The city is therefore considering three sources, including auctioning State properties, raising budget revenues and taking official development assistance loans to make up the balance, the local media reported.

Besides, the municipal administration will resort to capital from public assets, FDI funds and state-owned enterprises.

For ODA, the city will prudently weigh accessing this capital source to ensure its efficiency. The city also plans to use environmental funds to tackle infrastructure, traffic congestion and flooding issues.

In addition, in the first quarter of next year, HCMC will introduce a plan on mobilizing capital from the private sector.

For the capital from state-owned enterprises under the city’s management, the city will seek to tap idle funds next year, as the capital of many enterprises is yet to be used for investment or production.

Further, a tentative plan for attracting remittances from overseas Vietnamese is being finalized. If accessible, this source of capital will be used for investment rather than consumption or purchasing fixed assets.

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