Many outstanding mechanisms are expected to be given to Ho Chi Minh City.

The National Assembly's draft Resolution amending and supplementing a number of articles of Resolution No. 98/2023/QH15 on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City was commented on by the National Assembly Standing Committee within the framework of the 51st session taking place on the afternoon of November 24. Many outstanding mechanisms are expected to be given to Ho Chi Minh City - according to the Government's submission on the draft resolution.

Scene of the 51st session of the National Assembly Standing Committee, afternoon of November 24. Photo: QUANG PHUC

Effectively exploiting land funds to mobilize investment capital for infrastructure

Presenting the Government's report on this issue, Minister of Finance Nguyen Van Thang said that the free trade zone (FTZ) is considered a new special mechanism to enhance global competitiveness and promote the role of Ho Chi Minh City as an economic locomotive. The draft resolution proposes allowing Ho Chi Minh City to establish a management mechanism similar to the administrative "one-stop shop" model for the Management Board of Export Processing and Industrial Zones, helping to simplify administrative procedures, create new momentum for growth and enhance national competitiveness.

Minister of Finance Nguyen Van Thang briefly presented the report on the draft Resolution of the National Assembly amending and supplementing a number of articles of Resolution No. 98/2023/QH15 on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City, on the afternoon of November 24. Photo: QUANG PHUC

In addition, the mechanism for public transport-oriented urban development (TOD) is also designed to solve the problem of urban planning and development, while effectively exploiting land funds to mobilize investment capital for infrastructure. Accordingly, Ho Chi Minh City is allowed to decide on land recovery (after approval by the City People's Council) and implement independent public investment projects to carry out compensation and support for investment projects according to its own urban design model. This applies to the area surrounding the stations of Ring Road 3. Ho Chi Minh City is also given priority to use 100% of the revenue from land funds at local projects located in the vicinity of traffic junctions (according to the TOD model) to invest in public transport projects.

Chairman of the Ho Chi Minh City People's Committee Nguyen Van Duoc and delegates attended the 51st meeting of the National Assembly Standing Committee on the afternoon of November 24. Photo: QUANG PHUC

Selecting strategic investors with real capacity

The Government also sought the National Assembly's opinion to amend and supplement regulations on strategic investment incentives to attract large, truly capable projects with an expanded list of priority sectors, including high-level services, culture - sports, specialized healthcare , clean energy, waste treatment, logistics, and digital infrastructure.

Special tax incentives are also applied. Accordingly, the percentage of research and development (R&D) costs deducted when calculating taxable income of enterprises is up to 150-200% of the determined costs. The preferential corporate income tax rate is 10%, applied throughout the project implementation period...

In particular, to meet the development needs of large-scale projects (300ha to 1,000ha of land or more), the draft proposes to allow the Ho Chi Minh City People's Committee to decide on land recovery to implement projects in free trade zones and priority projects to attract strategic investment.

In addition to scale, the draft also adds criteria on the financial capacity and experience of investors when implementing the project. Specifically, the project must have a charter capital of VND500 billion or more; the project must have total assets of VND25,000 billion or more. For projects with a total investment capital of at least VND30,000 billion (or for projects under VND30,000 billion), investors must commit to a 30-40% equity capital contribution to the total investment capital. For projects over VND30,000 billion, the investor's equity capital in the project (together with equity capital in other projects that the investor is implementing) must reach at least 30% of the total investment capital; the remaining capital must be guaranteed for at least 15 years. The addition of these financial quantitative criteria aims to select strategic investors with real capacity to implement large projects, ensuring that the project is implemented quickly and sustainably, and deserving of the application of a special land recovery mechanism.

Representative of the auditing agency, Chairman of the Economic and Financial Committee Phan Van Mai expressed his agreement on the necessity of amending and supplementing a number of articles of Resolution No. 98/2023/QH15.

To ensure consistency and feasibility, the Standing Committee of the Economic and Financial Committee proposed to review the entire draft, remove policies that have been legalized, no longer have superior incentives compared to current regulations and laws and resolutions being considered for amendment or approval at this 10th session...

Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai speaks on the afternoon of November 24. Photo: QUANG PHUC

Regarding some major amendments and supplements, Mr. Phan Van Mai agreed to supplement the land recovery policy to implement projects in FTZs and noted the consistency of regulations in the National Assembly's resolution on removing difficulties and obstacles in implementing land procedures. The majority of opinions in the Standing Committee of the Committee also agreed with the "one-stop" model applied in FTZs.

Vice Chairman of the National Assembly Nguyen Khac Dinh gave comments to complete the draft. Photo: QUANG PHUC

Giving comments to complete the draft, Vice Chairman of the National Assembly Nguyen Khac Dinh agreed to immediately abolish regulations related to urban government and some contents that are no longer appropriate.

“For new issues that have been applied to other localities, or are similar but more convenient, Ho Chi Minh City should be allowed to apply them,” the Vice Chairman of the National Assembly commented, adding that although mechanisms should be “opened as much as possible for piloting,” they must also ensure the ability to manage risks; avoiding project losses. “Open as much as possible, but there must be valves and locks,” Vice Chairman of the National Assembly Nguyen Khac Dinh emphasized.

MR. PHUONG

Source: https://www.sggp.org.vn/nhieu-co-che-noi-bat-du-kien-se-duoc-trao-cho-tphcm-post825227.html