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Resolution 98 includes specific mechanisms and policies that are expected to bring many benefits to people and businesses in HCMC. (Photo: SGGP) |
Resolution 98 includes 44 mechanisms and policies covering seven areas that are expected to bring many benefits to people and businesses in HCMC.
Under new mechanisms and policies, the city is allowed to use the local budget to independently implement public investment projects to carry out site clearance, compensation, and resettlement support for households affected by transport projects, revoke land to implement on-site resettlement, and create land funds for biddings to choose investors to invest in projects for urban development.
The newly-approved resolution also allows the southern economic hub to apply PPP investment model in the fields of sports and culture, stipulate the minimum acceptable rate of investment in these projects; and forms of build-operate-transfer (BOT) contracts in construction, upgrade, extension, and modernization projects of road works using the city’s budget.
Notably, Resolution 98 gives permission to the People’s Committees of districts to allocate 2- 4 percent of the total expenditure in the local budget to carry out necessary duties. HCMC is allowed to use its budget to implement construction projects of regional and inter-regional roads, national highways, and expressways running across the city, and support localities at home and abroad.
The resolution includes mechanisms and policies on developing and exploiting resources of the HCMC Finance and Investment State Owned Company (HFIC), such as increasing charter capital from the revenue of the equitization of 100-percent state-owned enterprises in the city, from the remaining profit of HFIC after setting up funds. The city is allowed to allocate public investment capital to provide interest-rate support to projects that receive loans from the HFIC in the priority fields.
Besides, HCMC is granted authority to collect money for maintenance and periodic regeneration of export processing zones and industrial parks from businesses operating in the areas, and issue revenue and expenditure rules to ensure that budget documents and data are open, clear, and transparent.
The resolution allows the city to implement a trial of a financial mechanism to carry out solutions for reducing greenhouse gas emissions by exchanging and trading Carbon credits with local and international investors. The city will enjoy 100 percent of the revenue from carbon credit transactions.
It also allows the southern metropolis to use the roofs of administrative offices and public service units in the city to install solar power systems to provide electricity for the operation of the offices.
Resolution 98 also includes mechanisms and policies improving the quality of public services and people's living standards, including the allowance to establish the Department of Food Safety to handle law violation cases, and administrative violations against regulations on food safety and issue quarantine certificates for animal products brought out of the city.
The resolution also consists of mechanisms and policies on the arrangement of the organizational apparatus of administrative units, such as wards, communes, and towns; and regulations on the number of deputy heads of the People’s Committees of HCMC, wards, towns, and communes in accordance with the local current situation.
The HCMC People’s Committee will be allowed to approve planning and allocate land funds for commercial and social housing projects.
