Director of HCMC Department of Planning and Investment Le Thi Huynh Mai informed that the city has introduced its economic recovery program, consisting of two stages of overcoming negative consequences of the pandemic and recovering socio-economic-cultural aspects in accordance with Covid-19 prevention methods (until the end of 2022); effectively controlling the pandemic and addressing bottlenecks for fast and sustainable development of the city (from 2023-2025).
To fulfill those goals, HCMC needs to mobilize all possible resources, propose to the central government to perfect the current institution, complete its administrative reform, carry out the decentralization process, and develop its resources (human, land, finance).
Discussing the city’s advantages, Director Le Thi Huynh Mai reported that the present total budget revenues has increased by 3 percent compared to this time last year. There has been a drop of 30 percent in the number of FDI projects in the city, but a rise of 8 percent in capital size. More than a half of operating businesses are expanding their investment capital. Lastly, the city has poured money to upgrade its major roads to promote trading connections and import-export.
However, HCMC still endures certain challenges. Due to the complexity of the Covid-19 pandemic, many businesses are not fully recovered, and their productivity is rather low. Pressures from inflation, fuel and material price increase, as well as geopolitics conflicts between countries pose a threat of breaking current supply chains. The mobilization and use of public financial resources are not as effective as expected, with only 21 percent of the demands satisfied.
Aware of both the strengths and weaknesses, many businesses stressed on the priority of investment capital, port infrastructure improvement.
They cited that each year the goods flow via Cat Lai Port increases by 30 percent, resulting in the overloading status and serious congestions. To address this, besides necessary facilities upgrades, it is essential to develop a digital platform for online procedure completion. Also, Japanese businesses suggested an establishment of new ports or transshipment ones to boost trading and marine economy growth.
When improving traffic facilities, HCMC should take into account regional linkage to propose a corresponding state investment rise for this matter.
To attract more foreign investors, General Director of Kizuna Infrastructure Investment Co. Lam Dieu Tam Hieu retold the story of Long An Province welcoming 1,000 businesses. She stressed on more investments from HCMC in industrial parks to attract small and medium enterprises, leading FDI companies to manufacture end products, especially in the four fields of mechanics, food processing, chemicals – plastic – rubber; and electronics – IT.
Vice Chairman of Dragon Capital Investment Fund Tran Thanh Tam said that it is high time HCMC considered forming an international financial center. Managing a capital flow of US$7 billion, this organization plans to collaborate with HCMC Securities Co. to rise this sum to $14 billion in order to finance domestic businesses, and in turn boosting the general growth of the city.
He then requested related state agencies to consider all of the valuable recommendations above, followed by clear content as to the responsibilities of the authorities and businesses so as to overcome all obstacles as soon as possible.
Finally, Chairman of HCMC People’s Committee Phan Van Mai expressed his hope that businesses sited in the city closely work with the municipal leaders to form a successful economic growth model here.
After this meeting, the city will establish a task force to team with enterprises to accelerate investment projects, digital transformation projects, smart city construction projects, highly interactive innovative urban area project in the East of HCMC, effective land management and infrastructure development projects (focusing on addressing urban flooding, waste treatment, logistics improvement), accommodation projects, human resources training projects, smart culture and healthcare projects, as well as innovative startup projects.
