Establish a regional infrastructure development fund for synchronous investment.

Having a common infrastructure investment fund for the entire region with an open mechanism will promote the development and connection of localities in the Southeast region, especially in terms of infrastructure and transportation - factors that are hindering the development and exploitation of the region's full potential.

Bach Dang 2 Bridge is being jointly invested in by Dong Nai and Binh Duong to enhance traffic connectivity. Photo: P.Tung

* Promote the development and linkage of localities in the region

The Southeast is an important economic region of the South as well as the whole country, contributing 39% of the country's GDP and 42% of foreign investment capital. However, over the years, the region's development speed has been assessed as not commensurate with its potential and inherent position.

According to a report by the Ho Chi Minh City Institute for Development Studies, many studies have shown that the current management framework and mechanism have not fully exploited the economic potential of the Southeast region, and the region's economic growth is lower than the overall growth rate of the whole country.

Many problems leading to this situation have been identified such as: lack of connection in planning and development orientation of localities; lack of connection in management and operation of localities, and at the same time, no effective mechanism for regional governance; lack of strong investment as well as management mechanisms for key infrastructure projects connecting the Southeast region... In particular, despite being the most dynamic and developed economic region in the country, the transport infrastructure system connecting the Southeast region is very weak.

The Ministry of Transport is implementing a number of solutions to attract resources to build the transport network in the Southeast region. Specifically, it is submitting to the Prime Minister for approval 5 national sectoral plans in the transport sector; prioritizing resources to focus on investing in modern and synchronous transport infrastructure. The total estimated capital demand for regional transport infrastructure investment is about 738.5 trillion VND, of which the 2021-2025 period is about 342 trillion VND and the 2026-2030 period is about 396.5 trillion VND.

Deputy Minister of Transport Le Anh Tuan said that the transport infrastructure system of Ho Chi Minh City in particular and the Southeast region in general is facing overload and lack of synchronous connection. Meanwhile, investment resources for transport infrastructure only reach about 25-27% of the demand according to approved plans. This is one of the direct causes that hinder economic growth in the Southeast region.

At the first meeting of the Southeast Regional Coordination Council held in mid-July, Minister of Planning and Investment Nguyen Chi Dung said that the Southeast region is oriented to develop as a region with a modern economic structure, high economic growth rate, the largest growth driver in the country; a center of science - technology and innovation, high-tech industry, logistics and a highly competitive international financial center in the region; participating in the global value chain in a number of specialized sectors and fields with opportunities and advantages. Developing modern industrial - service - urban areas and high-tech industrial parks. Developing high-quality and value-added services in the fields of finance, banking, insurance; information technology - telecommunications; science - technology; tourism; logistics...

To achieve the common goals for the region according to the planning orientation, creating a large, unified space, it is necessary to have solutions to mobilize investment capital including research to form a regional infrastructure development fund. From there, mobilize and effectively use resources on the basis of leading public investment, activating non-state resources to maximize the potential and advantages of the region. In particular, prioritize the central budget from reserve sources, increase revenue to invest in urgent inter-regional projects.

* Propose 2 options for establishing an infrastructure development fund

Previously, at the second conference on exchange and cooperation between Ho Chi Minh City and the provinces of the Southeast region held in early July, the Ho Chi Minh City Institute for Development Studies proposed plans to establish an infrastructure development fund for the Southeast region.

Accordingly, through the research process, there are 2 proposed options that can be applied to establish the fund: the fund is established by the Ho Chi Minh City People's Committee and mobilizes state budget capital (priority is given to mobilizing local and central budget capital); the Prime Minister establishes the fund, under or associated with the Southeast Regional Coordination Council.

According to the analysis, with the first option, there is currently not enough legal basis for the Ho Chi Minh City People's Committee to establish a Regional Transport Infrastructure Development Fund. The regulatory framework does not allow localities to mobilize, allocate and share resources to carry out regional activities. In the event that there is a high-level document allowing a pilot, there will still be a series of issues related to the organization and operation of the fund as stipulated in laws and related documents. The Vietnamese institutional system is designed with a management mindset according to administrative boundaries (localities) with a vision for each industry, very limited in regional designs, so there will be a series of issues regarding authority, investment processes... Ho Chi Minh City, as the entity establishing the fund, must provide a basis for proposing adjustments and handling.

Meanwhile, option 2 would be suitable in the context of an expected resolution of the National Assembly on mechanisms and policies for the Southeast region. This option is suitable when there is a need for a convergence point for a number of pilot policies allowing localities to use their budgets to implement regional and inter-regional transport projects and works that have been drafted or are being proposed.

According to this plan, the fund will be established by the Prime Minister and directly under or associated with the Coordination Council of the Southeast region, which will have strong enough authority to mobilize resources. It will ensure the connection and coordination between localities and relevant parties. If designed appropriately, the fund will become an effective basis and tool to promote the role of the Regional Coordination Council.

At the first meeting of the Southeast Regional Coordination Council, the provincial People's Committee leaders proposed that the Prime Minister consider submitting to the National Assembly a Resolution on mechanisms and policies for the Southeast region, including the establishment of a regional transport system development fund established by the Prime Minister and associated with the Southeast Regional Coordination Council.

According to provincial leaders, having a common infrastructure investment fund for the entire region with an open mechanism will promote the development process and connect localities in the region.

Pham Tung

.

Source link: http://www.baodongnai.com.vn/dongnambo/202308/thanh-lap-quy-phat-trien-ha-tang-vung-de-dau-tu-dong-bo-3173560/