HCMC determined to implement NA resolution to improve its competitiveness

Ho Chi Minh City is determined to implement the National Assembly-approved resolution to improve its competitiveness.

At the meeting

This was heard at the meeting between the National Assembly's supervision delegation and the Ho Chi Minh City People's Committee on the implementation of the Resolution 43/2022/QH15 on fiscal and monetary policies to support the socio-economic recovery and development program and Resolution 57/2022/QH15 on investment policy for Ho Chi Minh City Ring Road 3 construction investment project until 2023.

The National Assembly's supervision delegation was led by Vice Chairman of the National Assembly Nguyen Duc Hai and Chairman of Ho Chi Minh City People's Committee Phan Van Mai chaired the reception.

At the meeting, Vice Chairman of the municipal People's Committee Nguyen Van Dung said that after two years of implementing the Resolution 43, the southern largest city has basically steadily overcome difficulties and challenges to have fruitful results which paved the way for socio-economic development, growth promotion and improvement of competitiveness.

Of which, the GRDP growth rate in 2022 is estimated to reach 9.03 percent; by 2023, it is estimated to reach 5.81 percent, lower than the set target but still quite high compared to other economies in the world and in the region. The shift in economic structure continues taking place positively.

Ho Chi Minh City fully implements social security and social protection policies as well as expands insurance coverage while adjusting pensions and social benefits. Supply-demand connection increased more and the labor market developed. More importantly, the unemployment rate in urban areas is below 4 percent.

In addition, foreign affairs, international integration, and economic diplomacy are deployed synchronously and substantially.

Many foreign affairs activities take place vibrantly, creating new advantages, opportunities, and new opportunities for socio-economic development. Therefore, the potential for cooperation with partners in economics, science and technology, training, innovation, digital transformation, high-tech industries and fields (chips, semiconductors, Hydrogen) was raised.

Chairman of Ho Chi Minh City People's Committee Phan Van Mai at the meeting

However, there are some existing problems in the city such as the level of socio-economic infrastructure overload, increase in economic crimes, drugs, and high-tech crimes. In 2023, although economic sectors grew, GRDP and city budget revenue did not reach the set goal while the disbursement rate of public investment capital was slow and behind schedule.

In the coming time, Ho Chi Minh City will accelerate the progress of implementation and disbursement of public investment capital, socio-economic recovery and development programs, important national projects, and key projects.

Besides, the city will have drastic administrative reform while improving the business investment environment by removing major obstacles and barriers for businesses, especially in terms of legal issues, output markets, access to capital, and capital absorption capacity for a safe, healthy, and sustainable market.

Ho Chi Minh City continues to apply specific policy mechanisms of the National Assembly-approved Resolution 98/2023/QH15 to improve productivity, quality, efficiency and competitiveness of the city's economy. Furthermore, the city will mobilize financial resources from public-private cooperation and social resources for development.

In addition, it will promote the application of information technology and database systems, especially databases on residents and businesses, and resolve administrative procedures.

Ho Chi Minh City People's Committee proposed to the National Assembly and the National Assembly Standing Committee to reduce the VAT rate in the VAT law from 10 percent to 8 percent for all goods and services to stimulate consumer demand. It also petitioned to reduce corporate income tax in accordance with other countries in the region and to soon promulgate the Law on Industrial Parks and Economic Zones.

Regarding the implementation of Resolution 57, it suggested the investment project to build a 47.51km long Ring Road 3 through Ho Chi Minh City with 2 component projects. Specifically, the first component project - building the Ring Road 3 through Ho Chi Minh City - will have a total investment of more than VND 22,410 billion while the second component project including compensation, support, resettlement of the Ring Road 3 section through the city will cost VND18,976 billion (US$769,948,960). About VND 1,671 billion must be spent to pay for residents affected by the projects. The total land area expected to be recovered is about 410,439 hectares.

According to the Ho Chi Minh City People's Committee, the work of compensation, support, resettlement training plans, career change and job search have been implemented according to the present regulations. By December 30, 2023, some 399,090ha was recovered for the second project component reaching 97.23 percent of the goal.

More than VND 7,629,981 billion was paid for those whose land was reclaimed attaining 73.07 percent of the target.

The Ho Chi Minh City People's Committee acknowledges that there are still some difficulties and obstacles in project implementation; thus, it voiced opinions that the Prime Minister should direct the Ministry of Natural Resources and Environment to help the city resolve difficulties and problems related to the coordination of construction material sources especially backfilling sand and backfill soil to ensure project implementation progress.

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