City needs $5.6b for projects

Tuesday, Jun 27, 2017 12:00

A view of HCM City’s skyline at night. The city needs VND128 trillion (US$5.63 billion) for development until 2020. — Photo

HCM City is seeking more than VND128 trillion (US$5.63 billion) in investment between now and 2020 for socio-economic development, according to the city’s Department of Planning and Investment.

The city will call for investment in 54 projects under Public Private Partnerships (PPP), with total funding of VND18.47 trillion ($813.54 million).

Due to its limited budget, the city is outlining new policies to meet development requirements in order to attract domestic and foreign resources, including investors in PPPs.

Social housing, resettlement areas, traffic works, and anti-flooding and environmental projects are all in need of funding.

Tran Vinh Tuyen, vice chairman of the city’s committee, said that of 13 million residents, only 1 million live in the outlying districts of Can Gio and Cu Chi, which account for half of the city’s area.

More than 12 million people are packed in the city’s remaining half, putting huge pressure on traffic and education systems and creating environmental and social welfare challenges.

Tuyen said the city should continue to reform state management and financial structuring, while also speeding up science and technology application in state management.

The city is encouraging a more active private sector and financial autonomy for public service organisations.

Equitisation of state-owned enterprises should also continue at a faster pace, the city has said.

Public service enterprises should develop a roadmap to generate funds and improve service quality as well as reduce budget expenditures, Tuyen said.

The city’s total investments reached more than VND310.5 trillion ($13.67 billion) last year, an increase of 8.9 per cent over 2015, counting for 30 per cent of the city’s Gross Regional Domestic Product (GRDP), according to the Department of Planning and Investment.

Of the figure, investment from private companies accounted for 65 per cent, a rise of 13.8 per cent over the previous year.

Foreign investment accounted for more than 15 per cent of total investment, according to the department. — VNS

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