The southern economic hub of Ho Chi Minh City needs to focus on public investment disbursement as it has fulfiled only 34% of the year's target to date, the lowest in the country, says Prime Minister Pham Minh Chinh.
At a Sunday working session with local authorities, the government leader urged the city to prioritize public investment disbursement for the three national target programs, economic recovery program and mid-term public investment plan.
According to HCMC Chairman Phan Van Mai, by November 25, total disbursed capital was over VND12,665 billion ($510.68 million), reaching 34% of the year's plan, as compared to the country’s average rate of 43%.
"HCMC, a large city with a population of over 10 million, must contribute to motivating and inspiring ministries, agencies and localities in the development process," the PM said, emphasizing he supports the city to overcome difficulties.
The leader stressed the urgent task is to speed up disbursement of public capital, one of the weaknesses of the whole system for many years.
“Therefore, the government will continue to accompany HCMC to resolve difficulties in disbursing public investment capital, using this resource for the socio-economic development of the city as well as the whole country.
"We must do what we have said. We must make what we have done effective, thus bringing development to the city, people and businesses," he said.
Regarding the city’s five key projects, PM Chinh directed the ministries of Finance, Construction, and Natural Resources and Environment to coordinate in handling the remaining issues of metro lines 1 and 2. The Ministry of Finance must join hands with the Ministry of Planning and Investment (MPI), the Ministry of Justice, and the Government Office to deal with loan procedures, he stated.
For the Ring Road 3 project, the Prime Minister requested relevant ministries and units to allocate enough capital for HCMC to implement the project in line with the government's Resolution. He also agreed to set up a working group in charge of settling the problems of the T3 terminal project at Tan Son Nhat International Airport, ensuring it remains on schedule.
The PM demanded the Ben Luc-Long Thanh Expressway project be completed by 2025 to connect with Ring Road 3 and form a complete route.
Regarding the HCMC-Moc Bai expressway project, he assigned the MPI and other relevant ministries and agencies to soon appraise the project’s pre-feasibility study report and submit it to the Prime Minister for consideration and approval in December.
In addition, ministries and government agencies will coordinate with HCMC in amending Resolution 54 on special mechanisms for the city, he said.
Also at the working session, HCMC Chairman Pham Van Mai proposed many important and urgent solutions to remove difficulties facing the southern metropolis, including helping businesses, particularly real estate developers, weather challenges and restore production and business activities; and creating jobs for laborers.
It is necessary to consider extending the credit room by 2 percentage points, launching new credit quotas for importers and soon establishing a corporate bond guarantee fund like some countries, Mai said.
The city major also suggested that the government provide specific solutions and drastic action to stabilize the corporate bond market.
"The Ministry of Finance and the State Securities Commission need to deliver sufficient and timely information, making bond buyers feel more secure," Mai noted.
Prime Minister Chinh emphasized the need to make the stock, corporate bond and real estate markets healthy, in accordance with the law. In particular, for the property market, the state, businesses and localities need to take measures together so that people can benefit from these efforts.
“Controlling bond issuances is the responsibility of the MoF and the SBV,” he affirmed, requesting the two entities strengthen inspection of bank operations to determine whether cash flow remains on track.