HCM CITY — Prime Minister Nguyễn Xuân Phúc has urged HCM City authorities to adopt drastic measures to accelerate public investment disbursement.

Speaking at a meeting with local authorities on Monday, he said though the city has made great efforts in promoting socio-economic development and COVID-19 prevention and fighting, its economic growth was still low, greatly affecting the growth of the whole country.

In the first six months of this year, it grew 1.02 per cent because the service industry, which accounts for 60 per cent of its GRDP, was seriously affected.

Normally, the city’s economic growth is 1.3-1.5 times higher than national economic growth.

There were a number of large projects which have suffered delays, especially public investment projects.

A report from HCM City’s People’ Committee revealed that as of July 15, as much as VNĐ18.836 trillion (US$809.4 million) has been disbursed, accounting for nearly 49 per cent of the set target.

The PM asked city authorities to complete the socio-economic development plan for 2021-23, medium-term investment plan as well as digital transformation for a city which is of special importance to the country.

He directed ministries and agencies to support the city in speeding up disbursement for large projects, removing bottlenecks so it can fulfil its socio-economic plan for this year.

The PM appreciated city authorities pledging to complete 100 per cent of public investment for the year. He asked the authority to be proactive and mobilise the political system in addressing problems, especially those relating to site clearance, one of the most common issues in disbursing public investment capital.

Private investment, as well as foreign investment, should be promoted, he said.

The PM emphasised the importance of consumer promotion as HCM City is the largest consumer centre in the country.

It was necessary for the city to develop such services as real estate besides the stock market, banking and tourism as they would help create jobs and push growth.

PM Phúc also suggested the city promote the development of the nighttime economy. More attention should also be paid to the digital economy and e-commerce which accounts for 2 per cent of the city's GRDP. — VNS