A view of HCM City. Prime Minister Nguyễn Xuân Phúc agreed in principle to HCM City’s proposal on administrative decentralisation to the maximum possible extent during a working session in Hà Nội yesterday with the Standing Board of the municipal Party Committee. — Photo ashui.com

HÀ NỘI — Prime Minister Nguyễn Xuân Phúc agreed in principle to HCM City’s proposal on administrative decentralisation to the maximum possible extent during a working session in Hà Nội yesterday with the Standing Board of the municipal Party Committee.

The meeting was to review the five-year implementation of 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 Civil Affairs Committee, supported 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.

Phúc also approved in principle 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, HCM City and agencies concerned to consider how to realise the proposal and report the results to him.

The leader allowed the city to decide on salary payments for public servants and those working for State-run agencies. 
From 2011-15, HCM City’s economy grew 9.6 per cent on average per year, 1.63 times the national rate. Per capita income reached US$5,122. The city collected VNĐ1.2 quadrillion ($54.8 billion) for the State coffers, contributing 27.8 per cent to the State budget. 
However, Secretary of the municipal Party Committee, Nguyễn Thiện Nhân, said the city’s growth has slowed in the past decade. While policies and mechanisms applied to the city are the same as 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 for the city, Nhân said, citing as an example that a large population and rapidly growing economy require greater investment in transport and other social services such as water supply, waste water treatment, education and health care.

Deputy Prime Minister Trịnh Đình Dũng said the rising population was exerting pressure on the city’s infrastructure and housing while backward technologies used in industry, services and transport were also having a detrimental impact on the environment.

He suggested developing 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. — VNS