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Hải Phòng borrowing cap lifted to 40% of budget

Update: May, 17/2017 - 09:00
Hải Phòng Thermal Power No1 and No2 Hải Phòng is the fourth city in Việt Nam, after Hà Nội, HCM City and Đà Nẵng, to be given special financial and budget management mechanisms to help boost growth.— VNA/VNS Photo Lâm Khánh
Viet Nam News

HÀ NỘI — The National Assembly’s Standing Committee (NASC) agreed on Monday to provide special financial and budget management mechanisms for the port city of Hải Phòng to help boost growth.

The mechanisms increase the city’s borrowing cap from 30 per cent to 40 per cent of the local budget.

Nguyễn Đức Hải, chairman of NA’s Financial and Budget Committee said the majority of deputies agreed with the move.

The city has high demand of capital for infrastructure development while financial support from the Central Budget was limited, he said.

Allowing the city to borrow more would enable Hải Phòng to mobilise resources for its development and help it fully tap its potential to fulfill its socio-economic tasks, Hải said.

The NASC also agreed to consider additional funds for the city and allow it to retain all budget collection including value added tax on imported goods.

Lê Văn Thành, Party Secretary of Hải Phong City said despite having achieved success in various sectors over the past few years, the city hadn’t made full use of its potential.

Thành blamed this on the city’s limited resources, adding that the high volume of goods coming through Hải Phòng Port necessitated transport infrastructure investment.

Similar mechanisms have previously been granted to HCM City, Hà Nội and Đà Nẵng. — VNS   

 

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