Ho Chi Minh City’s specialized policies to be submitted to National Assembly

Dinh Tien Dung, Finance Minister, said during a meeting with the Ho Chi Minh City’s NA delegation to discuss the resolution draft on the piloting of issues relating to a specialized policy and management decentralization emerging during the city’s development process.
If the resolution is approved Ho Chi Minh City will have stronger power in public financial administration, budget management, planning and investment, as well as personnel work.
Under the draft, Ho Chi Minh City will receive specialized mechanisms related to the budget for its development. Specifically, it can apply charges and fees higher than the current regulations but still within the permitted frame. Especially, the city will be allowed to retain all these extra revenues for its budget instead of having to pay to the central budget.

A corner of Ho Chi Minh City from the north bank of Saigon River.

With specialized mechanisms, the city’s debt will be also increased from the current 70 percent of its revenues to 90 percent, however, the rate must be within the limits of the annual budget deficit and the national public debt ceiling.
Instead of having to pay all land use fees attached to assets on the land of relevant agencies to the central budget as currently, the city will benefit a half.
The Ministry of Finance also proposed separate policies for Ho Chi Minh City to re-lend ODA funds or enjoy proceeds from equitization.
The city will be also permitted to continuously decentralize the income of civil servants and employers in the locality.
However, the Ministry of Finance said that decentralization of authorization in the field of land, investment, construction will need further discussion.
At the meeting, Nguyen Thien Nhan, Secretary of the Ho Chi Minh City's Party Committee, noted that breakthrough mechanisms and policies for the city are very important but should not cause disruption in the system.
Ho Chi Minh City is a special urban area, a big economic, cultural, educational and training and scientific and technological centre, a destination of international exchanges and integration, and is also a driver of the southern key economic region. Holding an important political position, the city has made crucial contributions to the country’s nation-building, renewal and integration efforts.
According to the municipal Party Committee’s Standing Board, Ho Chi Minh City’s gross domestic product (GDP) in 2011-2015 rose by 9.6 percent annually on average, 1.63 times higher than the country’s average and 1.5 times higher than the target set by the Resolution.
In 2016, its gross regional domestic product (GRDP) growth rate reached 8.05 percent, 1.3 times higher than the nation’s number, and its GRDP per head stood at US$5,122, 2.37 times higher than the country’s figure.