ĐÀ NẴNG — The Government has issued special regulations concerning investment, budgetary status and decentralisation Da Nang in order to help the central coastal city boost growth.

The regulations are expected to enable the city become an economic hub of the central region by 2020 and the most important driving force for boosting the development of the central and Central Highlands regions.Under the new regulation, the city’s borrowing cap is increased from 30 per cent to 40 per cent of the local budget. Under the special rules, the city is permitted to borrow money by issuing local government bonds and re-borrowing Government loans. The capital mobilization was conducted by issuing local government bonds and re-borrowing money the Government borrowed from foreign lenders. 

The Government will provide additional financial support to the city in implementing inter-regional projects in the form of public-private partnerships with priority given to socio-economic development projects.

The Government will also mobilise official development assistance for the city to carry out important infrastructure projects.

The city’s People’s Committee is allowed to approve lists of projects and receive non-refundable assistance for projects and programmes, except for those related to institutions, religion, legal policy, administrative reform, defence and security - areas subject to the Prime Minister’s approval.

Based on the central budget collection surplus, the Government will propose to the National Assembly Standing Committee to consider additional budgets for Đà Nẵng.

The supplemental capital will be spent on infrastructure, a hi-tech park and other projects for socio-economic development.

The Ministry of Finance is authorised to co-ordinate with relevant ministries and agencies to secure sufficient resources for socio-economic projects in the central Việt Nam and the Central Highlands. The city can offer financial support for organisations and individuals who borrow money to invest in major economic development projects. However, they have to make sure that investors can return the funds after agreed-upon amounts of time.

In addition, the city is allowed to sell social housing funded by the State and reinvest the proceeds in building other social housing in the city. However, the city’s People’s Committee has to submit a report on the transactions to the Ministry of Construction before implementation. — VNS