City unveils measures to spur investment, consumption

Ho Chi Minh City has launched an action program through 2010 to stimulate investment and consumption.

An artist's impression of the Thu Thiem New Urban Area in District 2, one of key projects to receive funding under a HCMC government program to boost consumption

Funding for the program will come from a VND20 trillion urban-bonds issue, bank loans, city budget, and the central Government’s stimulus fund.
To encourage investment, the city will help enterprises tackle their difficulties and obtain loans to expand their business.
To take advantage of a fall in the prices of construction materials, some key construction projects will be prioritized for completion this year.

The People's Committee said investment in infrastructure is essential though funds may be limited.

The city estimated it needs VND103 trillion (US$5.9 billion) in the 2007-10 period to complete transportation, irrigation, and construction works approved by the Government.

In 2009 alone it needs VND20 trillion to deal just with road traffic and develop the Hiep Phuoc Port, Thu Khiem New Urban Area, hi-tech zones, and flood-tide projects.

It plans to simplify investment and construction procedures and complete land clearance and compensation quickly to execute key projects.
Taxes will be reduced or waived so that enterprises have more money for their operations.
The concerned agencies will closely monitor the market situation and recommend reduction or exemption of duties for enterprises.
The city will regularly update information on the local and global markets.
It will work with Vietnamese diplomatic agencies abroad to promote trade and expand the market for city companies.
Retail and distribution systems will be developed in remote areas.
Housing will be developed to enable low-income workers to buy or rent houses.

By V. Anh – Translated by Minh Anh

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