Pham Van Dong route, a successful public-private partnership model of Ho Chi Minh City. This is also a form of investment proposed by Prime Minister Pham Minh Chinh to be prioritized for implementation in the near future – Photo: TU TRUNG
In 15 proposals of TP There are also very important recommendations mentioned by the city for many years: adjusting the budget adjustment rate for the city in the period of 2022 – 2025 from 18% to 23%. The Prime Minister affirmed that the Government basically supports this proposal of Ho Chi Minh City.
Many difficulties hinder the development of TP
Presenting to the high-ranking delegation of the Government chaired by Prime Minister Pham Minh Chinh, Chairman of the People’s Committee of Ho Chi Minh City Nguyen Thanh Phong reviewed outstanding achievements in all aspects of the city, when many indicators agreed. In the first 4 months of 2021, all of them grew compared to the same period last year.
However, in the long term, Mr. Phong said that besides the advantages and strengths, the city has to face many difficulties and challenges, greatly affecting the faster and sustainable development of the city today. one more.
In particular, the biggest problem is the increasing overload of socio-economic infrastructure, the inter-regional transport system is still very limited, not meeting the development needs as well as the central position. linkage center of the southern key economic region.
Second, the city has the largest budget contribution rate in the country (about 27%) but the ratio of total budget expenditure to total budget revenue in the province is the lowest in the country when it drops from 23% to 18%. Meanwhile, the need for capital to invest in infrastructure development and the need for funds to ensure policies and regimes are increasing, putting great pressure on the city’s budget.
“The balance of investment spending is always a difficult problem for the city, because there are many key projects and projects while the capital is very limited,” emphasized Mr. Phong.
In addition, Mr. Phong also pointed out the fact that, although the city has the largest economic activity in the country (accounting for more than 22% of the country’s GDP), the attraction of foreign investment has not been outstanding (the average amount of investment capital per capita). each project has not reached 1 million USD), the size of enterprises is mainly small and micro, accounting for nearly 98% with the registered capital accounting for just over 27% of the total registered capital of enterprises in Ho Chi Minh City.
According to Mr. Phong, this leads to the lack of many large businesses and investors, making the city unable to create a solid economic base system, as a premise for real strong development.
Prime Minister Pham Minh Chinh
In the process of doing, there are conflicts we have to solve, in the process of making mistakes we have to deal with, but in general, Ho Chi Minh City is on the right track, actively doing good functions and tasks. its powers and roles.
Prime Minister PHAM MINH CHANH
What bottlenecks need to be removed?
From the above situation, Mr. Nguyen Thanh Phong proposed to the Prime Minister many key issues.
Specifically, regarding decentralization and decentralization of powers for the city, Mr. Phong suggested that the Government approve the policy of assigning the Ministry of Home Affairs to assume the prime responsibility for, and coordinate with the city and central ministries and branches to soon develop a project to issue a replacement decree. Decree No. 93 of the Government on decentralization of some areas for the City in the second quarter of 2021.
Regarding medium-term public investment in the 2021 – 2025 period, the City proposes to approve the announcement of adjustment of the expected capital level for public investment in the medium-term public investment plan for the 2021 – 2025 period from the City’s investment capital that can be mobilized. can operate in accordance with the ability to balance and demand of the city is 261,967 billion VND.
In which, for investment capital from the local budget deficit, the central government has arranged enough medium-term plans for projects using on-loan ODA capital of 43,391 billion VND. As for the city’s budget capital, the city also proposed the Government to increase the expected capital level of the medium-term public investment plan in the 2021-2025 period to VND218,576 billion.
Administrative reform in Ho Chi Minh City is a breakthrough in the implementation of Resolution 54 of the National Assembly. In the photo: people do real estate procedures in area 3 of Thu Duc city – Photo: TU TRUNG
With the HCMC – Moc Bai expressway project, reporting to the Prime Minister, Mr. Phong said that the project has been assigned by the Government to the City People’s Committee as a competent state agency for implementation.
However, due to changes in the law on investment in the form of public-private partnership, the project must follow the order and procedures for deciding on investment policies, and at the same time, the cost of compensation for site clearance increases. from time to time, it is necessary to update again.
And in order to speed up the project’s progress after submitting the pre-feasibility report, the city proposed to the Prime Minister to direct relevant ministries and branches to review and submit to the Prime Minister for approval, including a plan to propose the Government to support. 100% of central budget capital for compensation and site clearance work in the city.
As for the property management of state-owned enterprises, the city also recommends two options for the Saigon Tourist Company Limited (Saigontourist) – subject to equitization in the direction of “The State needs to managed four hotels and contributed capital in these joint ventures” to ensure security and defense.
Government orders HCMC
Spending nearly 60 minutes concluding the issues proposed by Ho Chi Minh City to the Government, Prime Minister Pham Minh Chinh reaffirmed the very important position of Ho Chi Minh City in many aspects, not only for the South. but for the whole country.
The head of the Government emphasized that over the years, Ho Chi Minh City continues to be the economic locomotive of the country, with important achievements in investment efficiency, economic development indicators, and human resource attraction. high force compared to the region and the country.
The Prime Minister assessed that despite having “this and that”, Ho Chi Minh City is still an innovative city and the city’s actions in recent times are very meaningful.
“In the process of doing, there are conflicts we have to solve, in the process of doing, we have to make mistakes, but in the end, the city is on the right track, actively doing well in its functions and tasks. their powers and roles” – the Prime Minister stated.
However, the Prime Minister also pointed out the major limitations of the city, of which the biggest limitation is that it is not really commensurate with the role, position, opportunity and outstanding potential for the difference of a city like this. HCMC. Regarding the cause, according to the Prime Minister’s point of view, there are both subjective reasons from the interest of the central government “not enough” and of Ho Chi Minh City “not trying hard enough”.
The Prime Minister suggested that the city must become a center for developing high-quality human resources. In the photo: Vietnamese employees working for a Vietnamese company in the Hi-Tech Park of Ho Chi Minh City – Photo: N.HIV
On the other hand, when it comes to renewing the growth model, the Prime Minister noted the issues that have been done well and must be done better, in which, especially, the development of Thu Duc City into a pole of growth and development. strengthen the digital economy so that by 2025, it will account for 25% of GDP. Even, the city must propose mechanisms and policies to develop high-quality human resources, turning the city into a center for developing high-quality human resources of the country.
Regarding administrative reform, the Prime Minister said that compared to the stature and position of Ho Chi Minh City, it is “not good”. Therefore, the city must learn suitable models to pilot. Citing many years of experience in local management, the Prime Minister said that the model is good and effective, the majority agree and the people support it, “just boldly do it”.
As for infrastructure development, the Prime Minister said that the city must apply PPP (Law on investment in the form of public-private partnership), and at the same time noted that site clearance must be done locally. As for the State, the Government will base on specific conditions to support the construction and installation part as “prime capital”.
In addition to the city’s 15 proposed groups, the Prime Minister “ordered” Ho Chi Minh City to add one more proposal to make the city a national financial center. He said that the Government Standing Committee had previously held many meetings to discuss the city’s proposals. “With these 16 proposals, the two sides basically agreed. As of today, there are basically no problems that we have to worry about,” – emphasized the Prime Minister.
Increase the rate of budget adjustment: both encouraging and responsible
The biggest problem proposed by the city is to adjust the budget regulation rate (from 18% to 23%), the Prime Minister affirmed that “the spirit is to give the maximum support for Ho Chi Minh City, this maximum support is just right. is both an incentive and a responsibility”, and noted that the city must focus on three strategic breakthroughs and effective specific projects for implementation.
Avoid programs that are good but not feasible
The city has also petitioned the Prime Minister to allow investors to participate in the construction of new apartments to replace old and degraded apartments. In the photo: the blocks of letters of Thanh Da residence, Binh Thanh district, Ho Chi Minh City have been built for a long time – Photo: QUANG DINH
Requiring Ho Chi Minh City to be “worthy” of expectations from the Government, Prime Minister Pham Minh Chinh especially emphasized the mobilization of social resources when it comes to solutions to remove bottlenecks for HCMC. “I suggest a good model, we should go to school right away,” said the Prime Minister.
The Prime Minister also noted that the city needs to agree on awareness and action. Because according to the Prime Minister, a city of the size of the whole country like Ho Chi Minh City, leaders need to “think well, think must be intelligent, determination must be high, efforts must be great, actions must be drastic but effective. and deal with the need to go to the center, to the point”.
In particular, the spirit of decentralization and decentralization is very focused and it is necessary to clarify the responsibility of individualization along with strengthening supervision and inspection. Avoid situations when building a great program but implementing it is not feasible, impractical due to lack of resources.
The Prime Minister also reminded the city to review and perfect institutions, mechanisms and policies based on reality, as well as need to systematically and propose solutions with appropriate levels when the task placed on the shoulders of the city is keeping important. responsible for being the center of high human resource development for the whole country.
* Apply for a special mechanism for Thu Duc City in the second quarter of 2021
In order for Thu Duc City to truly become a new growth engine for Ho Chi Minh City and the whole southern economic region, Chairman of the City People’s Committee Nguyen Thanh Phong proposed that the Government direct ministries and central agencies to coordinate the construction of the city. a project on specific mechanisms and policies for Thu Duc City according to Resolution No. 131/2020/QH14 and Resolution No. 1111/NQ-UBTVQH14, submitted to the Government in the second quarter of 2021.
* Approval proposal for Intel Products Vietnam Company investment phase 2
According to the People’s Committee of Ho Chi Minh City, the city has reported to the Prime Minister on preferential policies for the project of increasing investment capital of Intel Products Vietnam Company in phase 2. The Prime Minister has assigned the Ministry of Planning and Investment to coordinate Ministries, sectors and cities have opinions with the investor’s proposal.
On the basis of the assessment of the socio-economic efficiency of phase 1 and the impacts of phase 2 of the project, as well as the investor’s proposal, the commitments and agreements signed with the investor, the provisions of With the current law and the conditions for mobilizing resources, the city officially proposed to the Prime Minister to approve the investor’s proposal for the phase 2 project of Intel Products Vietnam Company.
* Proposal to supplement budget capital for highway project HCMC – Moc Bai
The People’s Committee of Ho Chi Minh City has just proposed to the Ministry of Planning and Investment to report to the Prime Minister to supplement the central budget in the 2021 – 2025 period for the HCMC – Moc Bai expressway project (Tay Ninh) and component projects. 1A Ring Road 3, HCMC.
In which, the project to build the highway Ho Chi Minh City – Moc Bai needs the central budget capital of 5,901 billion VND to compensate for site clearance. As for the component project 1A of ring road 3 (section from provincial road 25B to highway Ho Chi Minh City – Long Thanh – Dau Giay) needs to supplement the central budget by about VND 1,800 billion due to the increased cost of site clearance. exceed the city’s previous commitments.
Previously, the People’s Committee of Ho Chi Minh City sent the Ministry of Planning and Investment about the total investment of the HCMC – Moc Bai expressway project of more than 13,613.4 billion VND, which is an increase of about 2,527 billion VND compared to the appraisal report. pre-feasibility study was scheduled at the end of October 2019. The increase is due to the cost of site clearance and the addition of additional intersections between the expressway and the ring road 3.
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