HCM City needs $37b for breakthrough programmes

Update: August, 25/2017 - 09:00
The Ngã Tư Ga Market in HCM City’s District 12 is submerged by flood water, affecting residents’ and traders’ livelihoods and damaging their belongings. — VNA/VNS Photo Mạnh Linh
Viet Nam News

HCM CITY — HCM City will need massive investment from the private sector if it is to meet its goals for transportation, flood control and other areas over the next three years, municipal authorities said at a meeting held on Thursday.

To implement its seven major programmes for the 2016-20 period, the city needs around VNĐ850 trillion (US$37.7 billion). The city’s budget, however, could only cover 20 per cent of the total investment capital necessary, said Nguyễn Thành Phong, chairman of the municipal People’s Committee, adding that it meant the city must count on the private sector to step in.

The seven programmes were approved at the city’s 10th Party Congress last year. They include human resource quality improvement; administrative reform; a more competitive business climate; traffic calming; climate change response; pollution reduction; and urban refurbishment and development. Sixty per cent of the capital will be mobilised for transport infrastructure, environment and flooding issues, Phong said.

Phong said the city will work to entice potential investors. Strategies will include administrative procedure reform to faciliate investors to access opportunities.

Deputy Director General of the Commercial Joint Stock Bank for Foreign Trade of Việt Nam (Vietcombank) Phạm Mạnh Thắng said Vietcombank has registered to take part in 61 projects related to the seven programmes. The projects’ total investment capital is over VNĐ100 trillion ($4.4 billion). The projects focus on education (23 projects), roads and bridges (16 projects), hospitals (7 projects) and urban development (9 projects).

With State resources under strain, applying the model of public-private partnerships (PPP) is a growing trend to develop public infrastructure and services, according to Thắng.

The city should also focus on projects that will be attractive to investors and commercial banks, he said. Greater transparency and publicity in PPP investment would help, too.

Participants at the meeting witnessed the signing of Memoranda of Understanding to provide credits for eight PPP projects with a total investment capital estimated at VNĐ26 trillion ($1.15 billion).

They include projects to build North-South axis road, Nguyễn Tất Thành road and Tân Phú hospital. — VNS