Ho Chi Minh City wants to limit the amount of support from the budget for each project

DNHN - The People's Committee of Ho Chi Minh City proposed that the Ministry of Planning and Investment coordinate the study of a limit of 10% of the total investment capital of each project for city budget support.

The People's Committee of Ho Chi Minh City has formally commented on the mechanism to attract strategic investors to the city and requested guidance from the President of the National Assembly. The document sent to National Assembly Chairman Vuong Dinh Hue by the People's Committee of Ho Chi Minh City emphasized that the policy of attracting strategic investors is a crucial factor in promoting the long-term, sustainable development of the city. There is a budgetary incentive for foreign companies to invest.

Recently, Ho Chi Minh City has missed numerous opportunities to attract large-scale high-tech projects due to its inability to apply the investor-proposed incentive mechanism. Particularly, the fields that Vietnam hopes to attract, such as the semiconductor integrated circuit industry, design technology, and component manufacturing, have trouble attracting the interest of large corporations. Due to the lack of orientation on the implementation roadmap and the lengthy implementation period, applying the standard procedure to select strategic investors becomes complicated, thereby increasing the risk of missing out on promising projects.

The current regulation does not invite investors but creates options through auction and bidding processes, which are not widely used to attract significant investors. Therefore, the People's Committee of Ho Chi Minh City proposed a mechanism that is flexible and suited to the international situation to send a message to the investment community that is clearer and more alluring.

According to the Ho Chi Minh City People's Committee, the proposed resolution specifies the City Council's decision-making criteria, conditions, level of support, content, form of support, and a specific timeframe. If approved by the National Assembly, Ho Chi Minh City will implement these specific regulations to ensure that it attracts truly strategic investors, while adjusting the level of financial support to match the City's financial capacity. The principle of support is only a portion of the capital required to promote the investment of the entire society and the socioeconomic growth of Ho Chi Minh City as a whole.

In addition, the People's Committee of Ho Chi Minh City proposed that the Ministry of Planning and Investment coordinate the study of a limit of 10% of the total investment capital of each project for city budget support. This is to establish a specific threshold to avoid problems with future project implementation.

PV (t/h)