On the afternoon of June 24, the National Assembly voted to approve the Resolution on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City. On the sidelines of the National Assembly , Chairman of the National Assembly's Economic Committee Vu Hong Thanh shared with the press his expectations for this Resolution.
Ho Chi Minh City is running out of steam.
PV: Sir, what is your assessment of the Resolution on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City , replacing Resolution 54?
Mr. Vu Hong Thanh: Through the summary assessment, there are some special and specific policy mechanisms for Ho Chi Minh City that have not been implemented much, and are not really effective in promoting policies to create more motivation for Ho Chi Minh City to develop, the objective reason is the Covid-19 pandemic. Therefore, we really hope that the Resolution amending and supplementing Resolution 54 for Ho Chi Minh City will create new motivation and resources for the city.
Through monitoring, we have noticed that the city is a bit “out of breath”. Although the absolute value is still high, the proportion of the contribution to GDP growth and budget revenue to the country in recent times is showing a decreasing trend. Meanwhile, this is the area that creates growth momentum, so it is in great need of special and specific policies.
Although the National Assembly supports the Resolution on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City, we still see that there is "something" in the implementation process that the Government and Ho Chi Minh City need to exploit better.
Chairman of the Economic Committee Vu Hong Thanh talks to the press on the sidelines of the National Assembly.
For example, the Standing Committee of the National Assembly mentioned that the TOD model (urban development model associated with public transport) needs to be expanded, because in the draft Land Law (amended), there is a policy mechanism for expanding the area of land recovery for compensation and resettlement support. What other items can be added to the constructions other than the connection points of traffic works along the high-speed railway and Ring Road 3 to expand?
How to deal with Resolution 18 is to harmonize the interests of the State, investors and people and use those resources to create development momentum for the country and for Ho Chi Minh City.
Because the land rent difference in Ho Chi Minh City is very high, if the scope of implementing the mechanism is expanded, it will increase resources. The city can expand the form of auction, bidding, implement urban development projects, tourism, trade, create more budget sources and solve employment, businesses pay budget to the city in the coming time.
Must use resources with focus and key points
PV: Here , there is a problem of handling old BT and now implementing new BT. What is your opinion on this issue?
Mr. Vu Hong Thanh: Our point of view is that the organization and implementation process in the past has not been standardized and there may be exploitation. Meanwhile, countries around the world have applied the BT form very successfully.
In Vietnam, the input cost of the project is determined to be high, the cost returned to the enterprise in the form of exchanging land for infrastructure is low, so the enterprise benefits while the state suffers both input and output losses. Therefore, we must overcome this mechanism. Resolution 31 also has a political basis to implement BT projects of the old Ho Chi Minh City.
Through monitoring, we see that some projects have identified land funds for the city to handle. However, there are still some cases where the land funds may not be identified.
In the coming time, it is necessary to resolve the issue of determining land funds so that the city can pay back BT projects that were stopped before the PPP Law took effect. It is important to determine the value of the land fund to pay investors, but it must be done at the right time and at the right value to avoid losses to the state.
In this content, I also see an issue that needs attention, which is in the previous Resolution 437 of the National Assembly Standing Committee and later included in the PPP Law, which is not to invest in traffic works on existing roads. Here, the city must choose and have appropriate policy mechanisms to handle this issue.
It is expected that Ho Chi Minh City will have more resources for development in the coming period.
Of course, we need to attract society to invest in these routes because the city's resources are abundant but the demand is very large, so the city is also very difficult to meet. Thus, a breakthrough policy mechanism is needed.
In practice, when we went to monitor and then advised the National Assembly Standing Committee to issue Resolution 437, there were many stations that were not placed in the right place, and people living at those stations were negatively affected, such as having to waste time and pay more money to travel on the same road they used to travel every day.
Therefore, it is necessary to select projects and policy mechanisms for the people, such as where to reduce or exempt fees, and which areas must be reduced so as not to affect the people to avoid complaints, social conflicts, and loss of security and order in projects that the city will later implement to build traffic works on existing roads.
PV: Ho Chi Minh City also has high expectations for the Ho Chi Minh City State Financial Investment Company . So, the National Assembly passed this new Resolution. In your opinion, how should the city take advantage of it to exploit the resources here?
Mr. Vu Hong Thanh: This is also a very special model. Previously, Ho Chi Minh City and Hanoi were given a mechanism to use this source during the equitization and divestment of state-owned enterprises, because this is also a very important source. When we have this source, the issue of how to use it effectively is also what we want.
We know that the real estate and assets of state-owned enterprises in the city are numerous and very large. Therefore, there needs to be a plan to equitize, divest, sell, and liquidate real estate, then the city will have a lot more resources.
It is important to use this resource with focus and key points to create a driving force for the city's development. I hope the city will have more resources for development in the coming period.
PV: Thank you very much.
Hoang Bich - Thu Huyen
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