Buildings along Saigon River in Ho Chi Minh City. Illustrative photo (Source: VNA)HCM City (VNA) –Ho Chi Minh City will need massive investment from the private sector if it isto meet its goals for transportation, flood control and other areas over thenext three years, municipal authorities said at a meeting held on August 24.
To implement its sevenmajor programmes for the 2016-20 period, the city needs around 850 trillion VND(37.7 billion USD). The city’s budget, however, could only cover 20 percent ofthe total investment capital necessary, said Nguyen Thanh Phong, chairman ofthe municipal People’s Committee, adding that it meant the city must count onthe private sector to step in.
The seven programmes wereapproved at the city’s 10th Party Congress. They include human resource qualityimprovement; administrative reform; a more competitive business climate;traffic calming; climate change response; pollution reduction; and urbanrefurbishment and development. Sixty per cent of the capital will be mobilisedfor transport infrastructure, environment and flooding issues, Phong said.
Phong said the city willwork to entice potential investors. Strategies will include administrativeprocedure reform to facilitate investors to access opportunities.
Deputy Director General ofthe Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank)Pham Manh Thang said Vietcombank has registered to take part in 61 projectsrelated to the seven programmes. The projects’ total investment capital is over100 trillion VND (4.4 billion USD). The projects focus on education (23projects), roads and bridges (16 projects), hospitals (7 projects) and urbandevelopment (9 projects).
With State resources understrain, applying the model of public-private partnerships (PPP) is a growingtrend to develop public infrastructure and services, according to Thang.
The city should also focuson projects that will be attractive to investors and commercial banks, he said.Greater transparency and publicity in PPP investment would help, too.
Participants at the meetingwitnessed the signing of Memoranda of Understanding to provide credits foreight PPP projects with a total investment capital estimated at 26 trillion VND(1.15 billion USD).
They include projects tobuild North-South axis road, Nguyen Tat Thanh road and Tan Phu hospital.-VNA
VNA
