PM gives nod to administrative decentralisation in HCM City

Prime Minister Nguyen Xuan Phuc agreed in principle with Ho Chi Minh City’s proposal on administrative decentralisation to a maximum possible extent during a working session in Hanoi on September 6 with the Standing Board of the municipal Party Committee. 
Prime Minister Nguyen Xuan Phuc (middle)
Prime Minister Nguyen Xuan Phuc (middle)

The meeting was to review the five-year implementation of the Politburo’s Resolution No.16-NQ/TW dated August 10, 2012 and propose special policies and mechanisms for the city’s rapid and sustainable development. 

The PM said the government’s Party Committee supports administrative decentralisation in the direction of allowing the city to undertake certain tasks of the government, ministries and central agencies relating to the approval of some kinds of projects and adjustment of several types of planning. 

At the same time, he asked ministries and municipal authorities to regularly inspect the process. 

PM Phuc also gave nod in principle to a proposal that allows the city to raise capital in the form of public-private partnership (PPP) or loans to implement projects fully or partially funded by the State budget which have yet to receive capital allocation. 

He assigned the Ministry of Planning and Investment to work with the Finance Ministry, Ho Chi Minh City and agencies concerned to consider how to realise the proposal and report the result to him. 

The leader allowed the city to decide on salary payment for public servants and those working for State-run agencies. 

From 2011-2015, Ho Chi Minh City economy grew 9.6 percent on average a year, 1.63 times the national rate. Per capita income reached 5,122 USD. The city collected 1.2 quadrillion VND (54.8 billion USD) for the State coffer, contributing 27.8 percent of the State budget.

However, Secretary of the municipal Party Committee Nguyen Thien Nhan said the city’s growth has slowed down in the past decade. While policies and mechanisms applied to the city are the same with those for other localities, the city managed to record high growth thanks to its specific advantages and unique conditions. 

At the same time, those conditions also pose challenges to the city, Nhan said, citing as an example that a big population and large-size economy require greater investment in transport and other social services such as water supply, waste water treatment, education and health care. 

Deputy Prime Minister Trinh Dinh Dung said growing population is exerting pressure on the city’s infrastructure and housing while backward technologies used in industry, services, transport also impact environment protection. 

He suggested building schemes to attract multinational corporations to invest in the city, develop emerging business sectors and consider developing the city following the model of a free economic zone