Government to consider stronger decentralization for HCMC: Deputy PM

A Government mission led by Deputy Prime Minister Vuong Dinh Hue yesterday worked with Ho Chi Minh City leaders on socioeconomic development in the first four months this year and listened to the city’s opinions and proposals.

Deputy Prime Minister Vuong Dinh Hue states at the meeting (Photo: SGGP)

At the meeting, Secretary of the city Party Committee Dinh La Thang said that despite being the country’s economic hub HCMC has been bound with mechanisms inhibiting its creativeness, development and the ability of resource exploitation.

Hence, the Government and ministries should regard HCMC’s development as the country’s to strongly distribute the administrative functions to the city, especially in public finance, budget revenue and spending, planning and administrative penalty.

Besides, the Government should have specific instructions on a regional mechanism to promote the role of HCMC in the southern key economic zone, he said.

According to Mr. Thang, the central authority should pay attention to investing official development assistance (ODA) capital in traffic infrastructure in gateways linking the city up to surrounding cities and provinces, approve total investment levels to speed up the progress of urban railway projects to deal with traffic ham.

They should permit the city to adjust plans and mechanisms on contractor appointment to solve with downgraded apartment blocks, and open a representative office of the Steering Board 389 in the city to fight against smuggling and counterfeits, the secretary said.

HCMC leaders proposed the Government to award it VND10 trillion (US$447.38 million) for exceeding budget revenue last year, design a particular mechanism on decentralization of revenue sources suiting urban planning, and leave a part of taxes from export import activities for the city, about 8-12 percent of the total revenue, in ten years.

The Government should authorize the city to study a mechanism on tax surcharge in some business sectors, collect and keep 50 percent of the using fee of land attached to properties on the land under the management of central agencies.

HCMC also suggested the Government to let it keep the income from state own enterprise equitization and state capital withdrawal at businesses under the People’s Committee, approve the city to decide application of investor nomination for projects to repair and rebuild old apartment blocks.

Concluding the meeting, Deputy Prime Minister Vuong Dinh Hue proposed the city to prepare a pilot project and submit it to the Government to solve some new matters arising out of existing regulations.

The Government will consider permitting it to implement the project as soon as possible, he pledged.

Local authorities should work with the Central Economic Commission and the Ministry of Planning and Investment to seek a regional mechanism for the development of the southern economic zone and HCMC, he said.

In addition, he urged them to work on a coordination mechanism among localities in the region and send it to the Prime Minister for approval.

The Deputy PM prompted the city to take the initiative in proposing the Government to permit stronger decentralization for the city to exercise self control in financial management, budget collection and revenue, planning and human resource organization and administrative sanctions in a manner to ensure market principles as well as self-selection and self-responsibility.

At the meeting, deputy chairman of the city People’s Committee Le Thanh Liem reported that the city obtained rather good economic growth rate in the first four months this year, total retailed revenues of goods and services increased 11 percent, consumer price index hiked 0.57 percent compared to last December.

Export import turnover hit US$9.7 billion, up 5 percent over the same period last year, industrial production rose 6.2 percent and agriculture grew 5.9 percent. Budget revenue touched VND98,572 billion (US$4.41 billion), a year on year increase of 4.44 percent.

By Han Ni – Translated by Hai Mien

Other news