Phan Văn Mãi, chairman of the People’s Committee, speaks about implementation of Resolution 98 that grants the city increased autonomy at a meeting on Tuesday. VNA/VNS Photo

HCM CITY — HCM City is gearing up to implement a National Assembly resolution that will grant it increased autonomy starting this month.

Speaking at a meeting on Tuesday, Phan Văn Mãi, chairman of the People’s Committee, said Resolution 98, which takes effect on August 1, would grant the city increased autonomy to address the persistent challenges it faces.

“With increased autonomy, the city is better equipped to tackle infrastructure development and institutional governance,” he said. “This will not only improve the quality of life for its residents but also attract investment, create job opportunities, and promote innovation and technology.” 

Infrastructure development is a key focus of the resolution, according to Mãi. 

The municipal Department of Transport has estimated around VNĐ266 trillion (US$11.28 billion) will be needed for infrastructure projects in the city by 2025. 

With increased autonomy, the city can prioritise and expedite the implementation of these projects, which is crucial to improving transportation systems and connectivity. 

“A well-developed infrastructure will also contribute to attracting more investment from both domestic and international sources,” he noted.

Institutional governance is another area where increased autonomy will prove beneficial. Currently, local governments often face difficulties in implementing tailored reforms due to time-consuming coordination with national authorities. 

With greater decision-making power, city authorities can streamline administrative procedures, improve public services, and implement innovative policies to address the city’s specific needs. 

The resolution approved by the National Assembly in June also provides the city with the authority to offer incentives to individuals and businesses involved in innovation, science and technology, and start-ups. 

It allows the city to attract investment in strategic sectors such as chip manufacturing, new materials, and sports and culture through public-private partnerships.

To facilitate the implementation of the resolution, the People’s Council has approved several resolutions related to public investment and poverty reduction. 

A resolution has been passed to raise the public investment ceiling VNĐ99 trillion, which will mainly focus on major public projects.

Nearly VNĐ2.8 trillion from the city’s budget has been allocated for poverty reduction and employment. 

In addition, VNĐ2.9 trillion from the budget will be invested in infrastructure, specifically the construction of the HCM City - Mộc Bài expressway.

Tasks for rest of 2023 

The city will continue to facilitate production and business activities, and promote administrative procedure reforms. 

The city will adjust its general planning, including its land use plan until 2040. 

It will review and adjust land prices, housing development plans, and focus on the development and management of social housing until 2030. 

Climate change resilience will also be taken into account in the first phase of the ongoing flood resilience project.

It will also focus on speeding up public investment disbursement for the rest of the year.

Lê Thị Huỳnh Mai, director of the Department of Planning and Investment, said despite a national decline, the city recorded a 9.3 per cent increase in the number of newly registered businesses in the first seven months. 

Its industrial production index saw a 2.4 per cent increase in the period while the national average decreased by 0.7 per cent. 

The employment rate slightly increased by 0.12 per cent and new job creation by 0.18 per cent, according to Mai. — VNS