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Dien Bien Phu Street in Binh Thanh District, HCMC (Photo: SGGP) |
Resolution 98/2023/QH15 on the pilot implementation of specific mechanisms and policies for the development of HCMC was approved by the National Assembly (NA) on June 24.
Accelerating infrastructure development
Resolution 98 includes 44 mechanisms and policies covering seven areas that are divided into two main groups, consisting of policies specified in Resolution 54 and new mechanisms and policies.
Under new mechanisms and policies, HCMC will carry out a pilot program of Transit Oriented Development (TOD) in urban planning to develop the spaces along metro routes and Ring Road 3.
Accordingly, the new mechanisms and policies allow the city 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, commercial, and service development in accordance with the law.
The resolution also allows HCMC to apply PPP investment 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.
In addition, Resolution 98 gives a nod to the People’s Committee of districts to allocate 2- 4 percent of the total expenditure in the budget to carry out necessary duties. The 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.
Exploiting resources
Resolution 98 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 revenue from 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 is also allowed 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.
The southern metropolis will adjust construction and urban plannings for specific cases of national and community interests; stipulate regulations for granting construction permits with a validity period for public works, such as houses, parking areas, and restrooms on the land managed by the State; require investors that are operating domestic solid waste treatment projects to voluntarily convert their technologies into municipal solid waste treatment processes with energy recovery; and consider to allow investors to increase domestic waste volumes in the order form.
The resolution also offers corporate income tax exemption for a period of five years to innovative start-up businesses, science and technology organizations, creativity and innovation centers, and organizations supporting innovation and startup activities; and income tax exemption for individuals and businesses having income from the capital transfer and the right to contribute capital to creative and innovative startups in the city; and policies encouraging traveling by public transportation uses less energy and produces less pollution
Improving the quality of life
The HCMC People’s Committee will be allowed to approve the planning and allocate land funds for commercial and social housing projects and 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.
Under the resolution, the People’s Committee of districts in HCMC; and wards, communes, and towns with a population of 50,000 and above will have no more than three Vice Chairpersons.
The People’s Council of Thu Duc City will establish the Board of Urban and have no more than two Vice Chairpersons and eight professional deputies. The People’s Committee of Thu Duc City will have no more than four Vice Chairpersons.
Additionally, HCMC will take charge of changing the use purpose of rice land under 500ha in accordance with the planning; approving the planning of urban and functional areas and technical infrastructure zones; verifying the origin of property in land and land-attached assets when revoking land of construction projects of export processing zones and industrial parks’ inspecting technical infrastructures of national and local-level transport projects, sports and entertainment complexes with a scale of 300 hectares and above, or 1,000 households and above; launching policies to attract human resources in the field of science and technology.
