Foreign tourists capture photographs of the HCM City People’s Committee building in District 1. The city has set ambitious targets to achieve double-digit growth over the next five years. — VNS Photo Bồ Xuân Hiệp

HCM CITY — HCM City, which seeks to establish itself as an international financial centre, has set an ambitious target to achieve double-digit economic growth annually over the next five years.

Speaking at a recent meeting, Phan Văn Mãi, chairman of the municipal People’s Committee, announced a comprehensive strategy aimed at mobilising diverse resources, including private investments, to support this initiative.

“The targets will be challenging yet rewarding,” he said.

Việt Nam's largest economic hub will continue to refine its institutional framework and enhance its infrastructure, encompassing transport, energy, logistics, and digital systems, according to the strategy.

In addition, the city plans to cultivate an ecosystem conducive to the advancement of science and technology, innovation, digital transformation, and finance.

It will implement key policies derived from a National Assembly Resolution this year, addressing various matters related to planning, public investment, and urban development.

It is actively pursuing partnerships with both local and foreign investors to finance key projects that will strengthen its financial infrastructure. 

This initiative is part of a broader effort to attract international business and stimulate economic development within the region.

"The city is dedicated to creating a favourable environment for finance-related activities, which is anticipated to play a pivotal role in realising these objectives," according to Mãi.

As the city seeks to position itself on the global stage, Mãi expressed optimism regarding the potential for increased investment and job creation, which could foster its sustained economic growth.

“If everything proceeds according to plan, we can achieve our growth target of over 10 per cent annually by 2030,” Mãi stated.

Private investment 

To meet its growth targets, the city aims to complete its transportation infrastructure by 2030, enhancing both internal connectivity and external linkages. 

The Prime Minister has approved a comprehensive plan for modernising infrastructure, which encompasses transportation, urban development, technology, and social services in the city. 

Achieving this ambitious goal is estimated to require approximately VNĐ5 million trillion (US$198.64 billion), with public funds covering only 25 per cent of the total. 

The remaining funds will be sourced from private investment through innovative off-budget mechanisms.

To attract such investment, the city plans to optimise land use and streamline processes for major projects. 

Recently, a new funding mechanism has been introduced where the HCM City State Financial Investment Company (HFIC) collaborates with banks, contributing VNĐ2 for every VNĐ10 invested in a project, according to Mãi.

Mãi also announced plans to issue urban government and project bonds to engage local residents and overseas Vietnamese investors. 

With remittances projected to reach $9.6 billion in 2024, the city sees an opportunity to leverage these funds effectively.

Land-related revenue reached over VNĐ25.3 trillion last year, a 46 per cent increase from 2023. 

The city anticipated 7.17 per cent growth in Gross Regional Domestic Product (GRDP) last year, with budget revenue expected to exceed VNĐ500 trillion.

Further details on specific projects and investment opportunities are anticipated in the coming months as the city outlines its vision to become a leading financial hub in Southeast Asia.

Speaking on the sidelines of the recent World Economic Forum's (WEF) annual gathering, Prime Minister Phạm Minh Chính said Việt Nam aims to develop an international financial centre in HCM City.

The establishment of such an international financial centre is anticipated to draw in investors and provide a vital resource for the city’s developmental needs. — VNS