HCM CITY – The private economy was a crucial driver for HCM City’s growth over the past four months and the city will introduce a series of measures to further support this sector, affirmed HCM City’s Department of Finance.

At a meeting to assess the city’s socio-economic achievements on Thursday, Lê Thị Huỳnh Mai, director of HCM City’s Department of Finance, affirmed that a majority of the city’s total retail sales growth during the first four months, which stood at 20 per cent, was contributed by private enterprises and individual business households.

The total registered capital of newly established enterprises and additional capital is VNĐ229.4 trillion, a 1.7 per cent increase.

The Finance Department stated that while new capital decreased, additional capital increased by nearly 74 per cent, indicating a trend of restructuring and deepening investment in the private sector.

The Politburo recently issued Resolution 68 affirming that the private economy is the most important driving force of the economy. The Government plans to submit to the National Assembly a resolution on special policies for the development of the private economy.

At the local level, to support the development of this economic sector, Mai stated that HCM City will continue to improve the business environment and streamline administrative procedures.

In this regard, local authorities are increasing the application of technology in registering new business establishments or announcing the resumption of operations. The city has also proposed to the Ministry of Finance a plan to handle and resolve issues for enterprises entirely through digital signatures.

To raise capital, the city has been diversifying channels to mobilise funds such as public-private partnerships (PPP), corporate bonds, controlled venture capital funds, and accelerating public investment disbursement, prioritising infrastructure and support industries.

Lê Văn Thinh, head of the management board of HCM City Export Processing and Industrial Zones, stated that they will actively monitor and support procedures for large projects proposed by investors, as well as potential projects currently in the site survey phase. 

However, the city foresees upcoming challenges such as unpredictable international trade situations. 

At the meeting, the city’s vice chairman, Võ Văn Hoan, requested that the departments accelerate solutions supporting private companies that are facing difficulties. 

With some urban infrastructure projects having recently commenced, such as the Can Gio coastal urban area and the Saigon River pedestrian bridge, Hoan urged the Finance Department and relevant units to press investors to comply with the schedule. This will contribute resources to local economic development. -- VNS

An office of a private company in HCM City. The private economy helps fuel the city's economy. -- VNS Photo Thu Ngân