Nguyễn Thị Lệ, chairwoman of the People’s Council, speaks at the 11th HCM City People’s Council session on Tuesday. — VNA/VNS Photo

HCM CITY — The HCM City People’s Council approved a number of key transportation projects worth US$2.25 billion at its 11th session this week.

Speaking at the meeting, Nguyễn Thị Lệ, chairwoman of the People’s Council, said these projects, which are part of the city’s ongoing efforts to alleviate traffic congestion, include the construction of a 3.5km section of Ring Road No. 2.

This project has an estimated cost of $405 million and will be funded from the State budget.

The road is expected to start construction in the second quarter of 2025 and be completed by the fourth quarter of 2026.

The project aims to reduce traffic congestion and the number of vehicles entering the city.

It will connect to the HCM City-Long Thành-Dầu Giây Expressway, as well as the city’s other ring roads, forming a connecting route between neighbouring provinces and minimising congestion at the city’s entrances.

The delay in the project’s completion has contributed to worsening traffic congestion in the city and between the city and southern provinces.

In addition, the People’s Council also approved an interest rate support policy for investment projects financed by the HCM City Financial Investment Company (HFIC) in priority sectors.

The policy includes adjustments and additions to support priority sectors such as high-tech, education, healthcare, and other industries.

The maximum loan with supportive interest rates is VNĐ200 billion per project, with a duration of not more than seven years.

The estimated funding demand for the programme from 2021-2025 is around VNĐ3.4 trillion.

The People’s Council’s 11th session has addressed nearly 100 proposals, including the investment policies and adjustments of over 85 projects.

The session also discussed a resolution on the functions and tasks of administrative units and public non-business units under the People’s Committee, as well as plans to restructure the number of city officials and civil servants.

In the first eight months, the city’s Industrial Production Index (IIP) increased by 2.8 per cent year-on-year, with an average growth of 6 per cent in key industries.

Total retail sales of goods and consumer service revenue increased by 7.6 per cent. The number of newly established businesses increased by 11.3 per cent.

The city’s total tourism revenue increased by 44 per cent year-on-year.

Lệ also pointed out that there were still existing issues.

In the first eight months, total state budget revenue did not meet the planned target, reaching only 63 per cent of the estimate.

Exports decreased by 15.3 per cent, and the registered capital of newly established businesses decreased by 12.4 per cent.

Foreign direct investment (FDI) attraction reached $1.96 billion in the period, down 27 per cent year-on-year.

To date, public investment disbursement has remained slow this year, with only 29 per cent of the full-year target disbursed.

The city aims to disburse 95 per cent of approved public investment capital by the end of 2023.

To achieve this goal, the city plans to enhance public services, streamline administrative reform, control inflation and stabilise the macro-economy.

It will also address any obstacles related to investment procedures to attract more investment into the country’s largest city, according to Lệ. — VNS