Phan Văn Mãi (standing), chairman of the city People’s Committee, speaks at a meeting on Wednesday in HCM City. — VNA/VNS Photo

HCM CITY — HCM City will enforce strict measures against contractors who are underperforming and non-compliant in an effort to expedite the disbursement of public investment. 

Speaking at a meeting on Wednesday, Phan Văn Mãi, chairman of the People’s Committee, said while the city disbursed VNĐ1.6 trillion of public investment in the first two months, four times the figure of the same period last year, it was only 2 per cent of the annual plan.

The city has set a target to disburse around VNĐ8 trillion (12 per cent of the yearly plan) in the first quarter, which is a challenging task, he said. 

Mãi ordered relevant agencies to work closely with contractors who contribute to project delays to ensure they strictly fulfil their responsibilities, particularly in regard to the provision of construction materials for projects.

Mãi said it was vital to complete land clearance for major projects no later than June 30 to ensure the progress of the projects. 

He also ordered contractors for major projects to report any obstacles at the projects in a timely manner to avoid delays in progress.

The city aims to disburse 95 per cent of total allocated investment capital, over VNĐ79.2 trillion, which is VNĐ11.2 trillion higher than last year. 

The city administration had earlier issued an action plan to expedite the disbursement of public investment in 2024. 

The action plan requires departments and relevant agencies to shorten the time for appraising and approving investment projects by at least 30 per cent.

In addition to the challenges in public investment, the city has faced other hurdles such as foreign direct investment falling 47 per cent year-on-year and credit demand remaining low.

The number of newly established enterprises reached nearly 6,300, up 18.2 per cent,  with total registered capital of over VNĐ56.8 trillion in the first two months, up 44.4 per cent year-on-year. 

Over 4,300 businesses resumed operations during this period, up 15.3 per cent year-on-year. However, around 14,700 businesses were suspended or dissolved during the same period.

Total credit outstanding in the city as of the end of February increased by 9.52 per cent compared to the same period in 2023, but only increased by 0.6 per cent compared to the end of January, and fell by 0.34 per cent compared to the end of last year.

Bright spots 

Despite the challenges in investment, the city’s Industrial Production Index (IIP) witnessed 4.3 per cent year-on-year growth in the first two months, mostly in the pharmaceutical sector, mechanical industry, food processing, and electronic goods production.

Lê Thị Huỳnh Mai, director of the Department of Planning and Investment, said the city saw an estimated 20 per cent increase in real estate business revenue during the first two months.

Retail sales revenue in the city is expected to reach VNĐ184.9 trillion, up 14.8 per cent year-on-year. 

Total state budget revenue is estimated to reach VNĐ103.2 trillion, accounting for 21 per cent of the yearly plan and up 14 per cent year-on-year.

Exports, which stagnated for the last two years, reached $6.3 billion in first two months, a rise of 11.6 per cent year-on-year.

A survey conducted by the Department of Industry and Trade found that most enterprises in the city have orders booked until June and some textile companies have orders extending until the end of the year. — VNS