Chairwoman Nguyễn Thị Lệ speaks at the opening of the 10th session of the HCM City People’s Council on Monday. — VNA/VNS Photo

HCM CITY — A recently approved National Assembly resolution that grants increased autonomy to HCM City would help address the numerous challenges it faces amid the economic turbulence, a city official said.

Speaking at the 10th HCM City People’s Council session, Nguyễn Thị Lệ, its chairwoman, said the city’s industrial production has been suffering since the beginning of the year due to the global economic situation, especially the electronics industry.

The slow recovery by the property and financial markets has contributed to it, she said.

Resolution 98, set to take effect next month, would optimise resources for the city and southern key economic region’s development, she noted.

The increased decision-making powers and allocation of resources it provides would enable the city to tackle persistent challenges, particularly related to infrastructure and institutional governance, she said. 

With its new ability to swiftly allocate resources and prioritise infrastructure projects, the city aims to alleviate congestion, improve transportation and enhance the quality of life for its people, she added.

The Department of Transport estimated that VNĐ266 trillion (US$11.28 billion) will be required for infrastructure development between 2021 and 2025. 

Of this, VNĐ92 trillion would come from public funds and VNĐ174 trillion from public-private partnerships (PPPs), it said. 

Major ongoing projects include construction of ring roads 2 and 3 and renovation of the Xuyên Tâm and Tham Lương – Bến Cát canal systems, it said.

Institutional governance is another key factor in the management of and decision-making processes in the city. 

The current system often requires time-consuming co-ordination with national authorities, making timely reforms tailored to specific needs difficult for local governments. 

Resolution 98 empowers HCM City authorities to streamline administrative procedures, improve public services and implement innovative policies.

The city will also have the authority to waive income tax and offer other incentives to individuals and businesses involved in innovation, science and technology, and start-ups.

It can solicit investment in strategic sectors such as chip manufacturing and new materials, and in sports and culture through PPPs. 

It can also initiate projects aimed at reducing greenhouse gas emissions through the carbon credit exchange and retain 100 per cent of revenues generated from carbon credit transactions.

The city’s economy grew at 3.55 per cent in the first half of the year, with the services sector topping with 4.96 per cent.

The city will continue to address issues and inadequacies related to administrative reform, housing, tax refunds, land-use rights and prices, house ownership certificates, and other land-related problems. — VNS