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Friday, June 14, 2024

New resolution on special mechanisms for HCMC issued

The Saigon Times

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HCMC – National Assembly Chairman Vuong Dinh Hue has signed Resolution 98/2023 approving several special mechanisms and policies for the development of HCMC.

The resolution will take effect from August 1, 2023, replacing Resolution 54 issued in 2017 for the same purpose.

Resolution 98/2023 comprises 44 mechanisms and policies in seven fields, aiming to bring numerous benefits to the residents and businesses of HCMC.

One of the key mechanisms introduced is the transit-oriented development (TOD) model, which enables the city to develop urban areas around public transit stations and terminals.

Under the new resolution, the city has the authority to expand investment sectors through public-private partnerships (PPP) for sports and cultural projects, with the flexibility to determine the minimum investment capital required. The city can also apply build-operate-transfer (BOT) contracts for existing road infrastructure while ensuring the welfare of residents. Moreover, local budgets can be allocated for investment projects in the build and transfer (BT) form.

A notable provision of the resolution allows district authorities to utilize unallocated funds ranging from 2% to 4% of the district’s budget for necessary expenses not included in the initial estimates.

The city is empowered to allocate local budgets for regional and inter-regional road infrastructure.

To facilitate financial initiatives, HCMC is granted the privilege to issue local government bonds and borrow loans from domestic financial institutions and external sources, provided that the total debts do not exceed 120% of the city’s budget revenue.

Regarding finance, the resolution introduces mechanisms and policies to unlock resources for the Ho Chi Minh City Finance and Investment State-Owned Company (HFIC), including increasing its charter capital through revenue generated from the equitization of 100% state-owned enterprises and undistributed earnings of HFIC.

Furthermore, public non-business units and administrative agencies in the city are allowed to install solar power panels to generate electricity for their own use.

The resolution also empowers HCMC to determine preferential policies and prioritize attracting strategic investors in the fields of science and technology, innovation, and creativity.

Additionally, the resolution permits the establishment of a department of food safety in HCMC, which will take charge of state management functions transferred from the existing departments of Health, Agriculture-Rural Development, and Industry and Trade.

The resolution provides detailed mechanisms for the administration of Thu Duc City and outlines policies for the construction of social housing.

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