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Saturday, July 20, 2024

HCMC to apply new mechanism with NA’s approval

The Saigon Times

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HCMC – HCMC, as a special-class city, has received approval from the National Assembly to pilot a new mechanism and special policies for development and promises to make every effort to implement it effectively.

As the majority of the deputies present at the sitting voted in favor, the National Assembly (NA) passed a resolution to pilot a special mechanism and policies for the development of HCMC yesterday, June 24.

Under the resolution, the biggest economic hub in Vietnam will be allowed to make use of the local budget to implement public investment road projects, carry out the transit-oriented development (TOD) model on a trial basis, and pilot a financial mechanism for reducing greenhouse gas emissions under the carbon credit exchange format.

The city also can determine preferential policies and prioritize attracting strategic investors in the fields of chip production, integrated circuit industry, and new materials. HCMC will submit a report regarding those issues to the Government and NA for consideration. If it falls between two sessions, the report will be presented to the NA Standing Committee.

Along with other special policies, HCMC is given the privilege to issue local government bonds in the country and abroad to borrow loans from domestic financial institutions and external sources, with total debt lower than 120% of the city’s budget revenue.

The HCMC Finance and Investment State-Owned Company (HIFU) is authorized to issue securities under the management of the HCMC People’s Committee.

The resolution will come into effect from August 1, 2023.

A preliminary evaluation of the three-year implementation of the new resolution will be submitted to the NA at a session at the end of 2026, while the summarization will be reported by 2028.

On the sidelines of the NA sitting, Phan Van Mai, chairman of the HCMC People’s Committee, expressed his happiness and emphasized that the city will strive to conduct the resolution effectively to be worthy of the whole country’s trust.

HCMC will hold a conference on July 7 regarding the newly-approved resolution for all city officials to thoroughly understand the new mechanism and policies.

At the same time, the People’s Committee has assigned specific tasks to various departments and sectors to prepare for the implementation of the resolution.

Currently, businesses and investors are largely aware of the recently approved resolution and have shown significant interest in its specific policies and mechanisms. The city will invite enterprises and investors to participate in a meeting to inform the resolution.

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